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<SEC-DOCUMENT>0000014707-04-000115.txt : 20041117
<SEC-HEADER>0000014707-04-000115.hdr.sgml : 20041117
<ACCEPTANCE-DATETIME>20041117083847
ACCESSION NUMBER:		0000014707-04-000115
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20041117
ITEM INFORMATION:		Results of Operations and Financial Condition
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20041117
DATE AS OF CHANGE:		20041117

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			BROWN SHOE CO INC
		CENTRAL INDEX KEY:			0000014707
		STANDARD INDUSTRIAL CLASSIFICATION:	FOOTWEAR, (NO RUBBER) [3140]
		IRS NUMBER:				430197190
		STATE OF INCORPORATION:			NY
		FISCAL YEAR END:			0130

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-02191
		FILM NUMBER:		041150864

	BUSINESS ADDRESS:	
		STREET 1:		8300 MARYLAND AVE
		STREET 2:		P O BOX 29
		CITY:			ST LOUIS
		STATE:			MO
		ZIP:			63105
		BUSINESS PHONE:		3148544000

	MAIL ADDRESS:	
		STREET 1:		P O BOX 29
		CITY:			ST LOUIS
		STATE:			MO
		ZIP:			63166

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	BROWN SHOE CO INC/
		DATE OF NAME CHANGE:	19990528

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	BROWN GROUP INC
		DATE OF NAME CHANGE:	19920703

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	BROWN SHOE CO INC
		DATE OF NAME CHANGE:	19720327
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>bws8k111704.htm
<DESCRIPTION>FORM 8-K
<TEXT>
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</head>
<body link="#0000FF">

<hr ALIGN=RIGHT NOSHADE WIDTH="100%">
<center>
<p><b><font size=+2>UNITED STATES</font></b>
<p><b><font size=+2>SECURITIES AND EXCHANGE COMMISSION</font></b>
<p><b><font size=+1>WASHINGTON, D.C. 20549</font></b>
<p>
<hr SIZE=3 NOSHADE WIDTH="38%">
<p><b><font size=+2>FORM 8-K</font></b>
<br>&nbsp;
<p><b><font size=+2>CURRENT REPORT</font></b>
<br>&nbsp;
<p><font size=+1>Pursuant to Section 13 or 15(d) of the Securities Exchange
Act of 1934</font>
<br>&nbsp;
<p><font size=+1>Date of Report (Date of earliest event reported) <b>November
17, 2004</b></font></center>

<br>&nbsp;
<br>&nbsp;
<table BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%" >
<tr>
<td VALIGN=TOP COLSPAN="2">
<center><b><font size=+3>BROWN SHOE COMPANY, INC.</font></b>
<br><b><i><font size=-2>(Exact name of registrant as specified in its charter)</font></i></b></center>
</td>
</tr>

<tr>
<td VALIGN=TOP WIDTH="50%">&nbsp;</td>

<td VALIGN=TOP WIDTH="50%">&nbsp;</td>
</tr>

<tr>
<td VALIGN=TOP COLSPAN="2">
<center><b><font size=+1>New York</font></b>
<br><i><font size=-2>(State or other jurisdiction of incorporation or organization)</font></i></center>
</td>
</tr>

<tr>
<td VALIGN=TOP WIDTH="50%">&nbsp;</td>

<td VALIGN=TOP WIDTH="50%">&nbsp;</td>
</tr>

<tr>
<td VALIGN=TOP WIDTH="50%">
<center><b><font size=+1>1-2191</font></b>
<br><i><font size=-2>(Commission File Number)</font></i></center>
</td>

<td VALIGN=TOP WIDTH="50%">
<center><b><font size=+1>43-0197190</font></b>
<br><i><font size=-2>(IRS Employer Identification Number)</font></i></center>
</td>
</tr>

<tr>
<td VALIGN=TOP WIDTH="50%">&nbsp;</td>

<td VALIGN=TOP WIDTH="50%">&nbsp;</td>
</tr>

<tr>
<td VALIGN=TOP WIDTH="50%">
<center><b><font size=+1>8300 Maryland Avenue</font></b>
<br><b><font size=+1>St. Louis, Missouri</font></b>
<br><i><font size=-2>(Address of principal executive offices)</font></i></center>
</td>

<td VALIGN=TOP WIDTH="50%">
<center><b><font size=+1>63105</font></b>
<br><i><font size=-2>(Zip Code)</font></i></center>
</td>
</tr>

<tr>
<td VALIGN=TOP COLSPAN="2">&nbsp;</td>
</tr>

<tr>
<td VALIGN=TOP COLSPAN="2">
<center><b><font size=+1>(314) 854-4000</font></b>
<br><i><font size=-2>(Registrant's telephone number, including area code)</font></i></center>
</td>
</tr>

<tr>
<td VALIGN=TOP COLSPAN="2">&nbsp;</td>
</tr>

<tr>
<td VALIGN=TOP COLSPAN="2">&nbsp;</td>
</tr>
</table>

<br>&nbsp;
<center>
<p>Page 1</center>

<hr ALIGN=RIGHT NOSHADE WIDTH="100%">
<p><b>Item 2.02 Results of Operations and Financial Condition</b>
<p>On November 17, 2004, Brown Shoe Company, Inc. (the "Company") issued
a press release (the "Press Release") announcing its results<b> </b>of
operations for the quarter ended October 30, 2004. A copy of the Press
Release is being filed as exhibit 99.1 hereto, and the statements contained
therein are incorporated by reference herein.
<p>In accordance with General Instruction B.6. of Form 8-K, the information
contained in Item 2.02 and the Exhibits attached hereto shall not be deemed
"filed" for purposes of Section 18 of the Securities Exchange Act of 1934,
as amended (the "Exchange Act"), or otherwise subject to the liabilities
of that section, nor shall they be deemed incorporated by reference in
any filing under the Securities Act of 1933, as amended, or the Exchange
Act, except as shall be expressly set forth by specific reference in such
a filing.
<p><b>Item 9.01 Financial Statements and Exhibits</b>
<br>&nbsp;
<table BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%" >
<tr>
<td VALIGN=BOTTOM WIDTH="7%">
<center>(c)</center>
</td>

<td VALIGN=BOTTOM WIDTH="15%">Exhibit</td>

<td VALIGN=BOTTOM WIDTH="78%">&nbsp;</td>
</tr>

<tr>
<td VALIGN=TOP WIDTH="7%">&nbsp;</td>

<td VALIGN=TOP WIDTH="15%">&nbsp;</td>

<td VALIGN=TOP WIDTH="78%">&nbsp;</td>
</tr>

<tr>
<td VALIGN=TOP WIDTH="7%">&nbsp;</td>

<td VALIGN=TOP WIDTH="15%">99.1</td>

<td VALIGN=TOP WIDTH="78%">Press Release issued November 17, 2004</td>
</tr>

<tr>
<td VALIGN=TOP WIDTH="7%">&nbsp;</td>

<td VALIGN=TOP WIDTH="15%">&nbsp;</td>

<td VALIGN=TOP WIDTH="78%">&nbsp;</td>
</tr>
</table>

<br>&nbsp;
<center>
<p><b><font size=+0>SIGNATURES</font></b></center>

<p><font size=+0>Pursuant to the requirements of the Securities Act of
1934, the Registrant has duly caused this report to be signed on its behalf
by the undersigned hereunto duly authorized.</font>
<br>&nbsp;
<table BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%" >
<tr>
<td VALIGN=TOP WIDTH="35%">&nbsp;</td>

<td VALIGN=TOP WIDTH="3%">&nbsp;</td>

<td VALIGN=TOP WIDTH="63%"><b>BROWN SHOE COMPANY, INC.</b></td>
</tr>

<tr>
<td VALIGN=TOP WIDTH="35%">&nbsp;</td>

<td VALIGN=TOP WIDTH="3%">&nbsp;</td>

<td VALIGN=TOP WIDTH="63%">(Registrant)</td>
</tr>

<tr>
<td VALIGN=TOP WIDTH="35%">&nbsp;</td>

<td VALIGN=TOP WIDTH="3%">&nbsp;</td>

<td VALIGN=TOP WIDTH="63%">&nbsp;</td>
</tr>

<tr>
<td VALIGN=TOP WIDTH="35%">&nbsp;</td>

<td VALIGN=TOP WIDTH="3%">&nbsp;</td>

<td VALIGN=TOP WIDTH="63%">&nbsp;</td>
</tr>

<tr>
<td VALIGN=TOP WIDTH="35%">Date: November 17, 2004</td>

<td VALIGN=TOP WIDTH="3%">&nbsp;</td>

<td VALIGN=TOP WIDTH="63%">
<center>/s/ Michael I. Oberlander
<hr ALIGN=RIGHT NOSHADE WIDTH="100%"></center>
</td>
</tr>

<tr>
<td VALIGN=TOP WIDTH="35%">&nbsp;</td>

<td VALIGN=TOP WIDTH="3%">&nbsp;</td>

<td VALIGN=TOP WIDTH="63%">Michael I. Oberlander
<br>Vice President, General Counsel and Corporate Secretary</td>
</tr>
</table>

<center>
<p>Page 2
<br>
<hr ALIGN=RIGHT NOSHADE WIDTH="100%">
<br>&nbsp;
<p><font size=+0>INDEX TO EXHIBITS</font></center>

<br>&nbsp;
<table BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%" >
<tr>
<td VALIGN=TOP WIDTH="14%">
<center><b>Exhibit No.&nbsp;</b></center>
</td>

<td VALIGN=TOP WIDTH="3%">&nbsp;</td>

<td VALIGN=TOP WIDTH="83%">
<center><b>Description&nbsp;</b></center>
</td>
</tr>

<tr>
<td VALIGN=TOP WIDTH="14%">
<center>99.1</center>
</td>

<td VALIGN=TOP WIDTH="3%">&nbsp;</td>

<td VALIGN=TOP WIDTH="83%">
<center>Press Release, dated November 17, 2004</center>
</td>
</tr>
</table>

<center>
<p>Page 3</center>

<hr ALIGN=RIGHT NOSHADE WIDTH="100%">
<br>&nbsp;
<br>&nbsp;
</body>
</html>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>bws8k111704ex99.htm
<DESCRIPTION>PRESS RELEASE
<TEXT>
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<html>
<head>

</head>
<body link="#0000FF" vlink="#800080">

<div align=right><font size=+1>Exhibit 99.1</font></div>
<font size=+4>News</font>
<div align=right><b>For Immediate Release</b>
<br><b>Contact: Beth Fagan</b>
<br><b>Vice President, Public Affairs</b>
<br><b>314.854.4093</b></div>

<center><b><u>Brown Shoe Reports Net Earnings Per Diluted Share of $1.01
for 3rd Quarter 2004</u></b></center>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ST.
LOUIS, November 17, 2004 -- Brown Shoe Company, Inc. (NYSE:BWS) today reported
net earnings of $18,820,000 for the third fiscal quarter ended October
30, 2004, versus $21,200,000 for the year-ago quarter, an 11.2 percent
decrease. Earnings per diluted share were $1.01, versus $1.13 last year.
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Consolidated
net sales for the quarter increased 4.3 percent to $514,825,000, versus
$493,433,000 for the year-ago quarter.
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; "Earnings
were essentially in-line with our earlier projections," said Brown Shoe
Chairman and CEO Ron Fromm. "An on-plan earnings performance in our Famous
Footwear division helped offset the challenging environment faced by areas
of our branded wholesale, Naturalizer Retail and children's businesses.
In addition, the quarter was favorably impacted by reduced compensation
costs related to stock-based and incentive plans of $5.3 million after-tax,
compared to last year's third quarter.
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; "As
we look ahead," Fromm added, "we continue to see near-term challenges for
our wholesale segment due to the difficult retail environment, especially
within the moderate zone. While we believe our strategies and brand-building
investments will improve results in 2005, we believe it prudent to reduce
our full-year earnings guidance to $2.35 to $2.50 per diluted share."
<p><b>Third Quarter Retail Results</b>
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; As
previously reported, sales at Famous Footwear, the Company's 914-store
family footwear chain, increased 3.3 percent to $311,685,000 for the quarter,
versus $301,588,000 for the year-ago period. Operating earnings for Famous
Footwear were up 5.9 percent to $24,802,000, versus $23,427,000 for the
year-ago quarter. Same-store sales were down 0.4 percent for the quarter
and margins were down slightly. The improvement in operating earnings was
due to the leveraging of higher sales across the expense base.
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; "We
are encouraged by Famous Footwear's ability to deliver year-to-date operating
earnings that are on-plan, despite this year's challenging back-to-school
period," Fromm said. "We believe these results validate our investments
in improving our assortments, merchandising and store shopping experience."
<center>
<p>Page 1 of 6
<br>
<hr ALIGN=RIGHT NOSHADE WIDTH="100%"></center>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Third
quarter sales for the Company's 381 Naturalizer stores in the United States
and Canada were $49,911,000, versus $49,789,000 for the year-ago period.
During the quarter, the division had an operating loss of $1,491,000, compared
to an operating loss of $166,000 for the year-ago quarter, primarily due
to lower than planned same-store sales. Same-store sales were down 5.7
percent for stores in the United States, and up 2.4 percent in Canada.
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Last
week, Brown Shoe announced it had formed a separate division devoted to
its 381 specialty retail stores in the United States and Canada. "We have
added management expertise to this area primarily with the goal of increasing
the profitability of our Naturalizer stores," Fromm continued. "This work
is under way and we are looking for improved results next year."
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; At
the same time, Brown Shoe consolidated management of its Wholesale operations
into one division: Brown Shoe Wholesale. As announced, that move is intended
to further strengthen product design, brand building and service to major
store customers.
<p><b>Third Quarter Wholesale Results</b>
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Wholesale
sales for the quarter were $148,696,000, up 6.2 percent versus $140,062,000
last year.
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Operating
earnings for the Wholesale businesses were $10,375,000. compared to $15,460,000
for the prior-year quarter, a 32.9 percent decrease, as a result of increased
allowances and lower-than-anticipated sales in its children's, Bass, Original
Dr. Scholl's and Naturalizer businesses.
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; "While
our LifeStride brand had a 19.4 percent increase in wholesale sales for
the quarter and our Carlos business increased 65.9 percent, Naturalizer
wholesale sales were down 9.8 percent," Fromm said. "Year-to-date, however,
these brands continued to gain market share in U.S. department stores versus
last year according to NPD Group data."
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unfilled
orders for the Wholesale division are running 6 percent higher than last
year.
<p><b>Nine Months Results</b>
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; For
the first nine months of 2004, consolidated net earnings were down 15.7
percent, to $35,201,000 or $1.87 per diluted share, compared to $41,759,000
or $2.25 per diluted share, the year before. Earnings per share for the
period were negatively affected by Bass transition costs, which have totaled
$0.17 per share. Offsetting these charges are benefits from reduced compensation
costs associated with stock-based and incentive compensation plans; they
were $6.0 million after-tax, or $0.32 per diluted share, lower than the
comparable nine-month period last year.
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Sales
increased 4.8 percent during the nine-month period to $1,465,314,000, compared
to $1,398,261,000 last year.
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; For
the nine month period, sales at Famous Footwear increased 2.6 percent to
$853,620,000 from $831,634,000 for the year-ago period; increased 0.9 percent
at Naturalizer
<center>
<p>Page 2 of 6
<br>
<hr ALIGN=RIGHT NOSHADE WIDTH="100%"></center>

<p>Retail (United States and Canada) to $143,507,000 versus $142,296,000;
and increased 9.1 percent at Wholesale to $457,125,000 versus $418,950,000
for the first nine months of last year.
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Operating
earnings for the nine months increased 6.2 percent to $49,818,000 at Famous
Footwear versus $46,914,000 last year; decreased 21.8 percent for Wholesale
to $32,144,000 versus $41,106,000; and declined to a loss of $6,262,000
for Naturalizer Retail, which posted a loss of $2,534,000 for the first
nine months of 2003.
<p><b>Forward-Looking Guidance</b>
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; With
respect to forward-looking guidance for fiscal 2004, due to the continued
difficult wholesale environment, Brown Shoe is revising its earnings per
share estimate to $2.35 to $2.50, which compares to fiscal 2003 earnings
per share of $2.52. The Company estimates diluted earnings per share for
the fourth quarter will be $0.48 to $0.63, versus $0.27 for the year-ago
quarter. Both the full-year and fourth quarter 2003 results included special
charges of $0.14 per diluted share in connection with the closing of the
Company's last Canadian manufacturing facility and $0.11 per diluted share
from an environmental litigation charge.
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; This
guidance is predicated upon a slightly positive same-store sales retail
performance at Famous Footwear for the fourth quarter of 2004. The Company
also estimates its Wholesale sales and operating earnings will be down
versus last year for the fourth quarter.
<p><b>Third Quarter Conference Call:</b>
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Brown
Shoe will hold a conference call to discuss second quarter results today
at<b> 9:00 a.m. Eastern Time </b>(Wednesday, November 17). While the question-and-answer
session of the call will be limited to institutional analysts and investors,
retail brokers and individual investors are invited to attend via a live
web-cast at <u>http://www.fulldisclosure.com</u> (at the website, type
in the BWS ticker symbol to locate the broadcast) or go to <u>http://www.corporate-ir.net/ireye/ir_site.zhtml?ticker=BWS&amp;script=1010&amp;ite</u>.
<p><b><font size=-1><i>Safe Harbor Statement Under the Private Securities
Litigation Reform Act of 1995</i>: </font></b><font size=-1>This press
release contains certain forward-looking statements, including without
limitation, the statements under the caption "Forward-Looking Guidance."
Such statements are subject to various risks and uncertainties that could
cause actual results to differ materially. These include (i) general economic
conditions and the consumer's preferences and purchasing patterns, which
may be influenced by consumers' disposable income; (ii) the uncertainties
of currently pending litigation; (iii) intense competition within the footwear
industry; and (iv) political and economic conditions or other threats to
continued and uninterrupted flow of inventory from Brazil and China, where
the Company relies heavily on third-party manufacturing facilities for
a significant amount of its inventory. The Company's reports to the Securities
and Exchange Commission contain detailed information relating to such factors.
The Company does not undertake any obligation or plan to update these forward-looking
statements, even though its situation may change.</font>
<p><font size=-1><b>Brown Shoe</b> is a $1.8 billion footwear company with
worldwide operations. The Company operates the 900-store Famous Footwear
chain, which sells <i>brand name shoes for the family</i>. It also operates
400 Naturalizer stores in the U.S. and Canada that sell the Naturalizer
brand of shoes and accessories. Brown Shoe, through its Wholesale divisions,
owns and markets leading footwear brands including Naturalizer, LifeStride,
Connie and Buster Brown; it also markets licensed brands including Dr.
Scholl's, Bass and Carlos by Carlos Santana for adults, and Barbie, Bob-the-Builder,
Spider-Man and Disney character footwear for children. Brown Shoe press
releases are available on the Company's web site at http://www.brownshoe.com.</font>
<center>
<p>Page 3 of 6
<br>
<hr ALIGN=RIGHT NOSHADE WIDTH="100%">
<p><b>BROWN SHOE COMPANY, INC.</b>
<br><b>CONDENSED CONSOLIDATED BALANCE SHEETS</b>
<br><b>(Unaudited)</b></center>

<p><b><i>(Thousands)</i></b>
<table BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%" BORDERCOLOR="#008000" >
<tr>
<td VALIGN=TOP WIDTH="64%">&nbsp;</td>

<td VALIGN=TOP COLSPAN="2" WIDTH="17%">
<center>October 30,
<br>2004
<hr ALIGN=RIGHT NOSHADE WIDTH="100%"></center>
</td>

<td VALIGN=TOP WIDTH="3%">&nbsp;</td>

<td VALIGN=TOP COLSPAN="2" WIDTH="17%">
<center>November 1,&nbsp;
<br>2003
<hr ALIGN=RIGHT NOSHADE WIDTH="100%"></center>
</td>
</tr>

<tr>
<td VALIGN=TOP WIDTH="64%"><u>ASSETS</u></td>

<td VALIGN=TOP WIDTH="4%">&nbsp;</td>

<td VALIGN=TOP WIDTH="13%">&nbsp;</td>

<td VALIGN=TOP WIDTH="3%">&nbsp;</td>

<td VALIGN=TOP WIDTH="4%">&nbsp;</td>

<td VALIGN=TOP WIDTH="13%">&nbsp;</td>
</tr>

<tr>
<td VALIGN=TOP WIDTH="64%">&nbsp;</td>

<td VALIGN=TOP WIDTH="4%">&nbsp;</td>

<td VALIGN=TOP WIDTH="13%">&nbsp;</td>

<td VALIGN=TOP WIDTH="3%">&nbsp;</td>

<td VALIGN=TOP WIDTH="4%">&nbsp;</td>

<td VALIGN=TOP WIDTH="13%">&nbsp;</td>
</tr>

<tr>
<td VALIGN=TOP WIDTH="64%">Cash and Cash Equivalents</td>

<td VALIGN=TOP WIDTH="4%">$</td>

<td VALIGN=TOP WIDTH="13%">
<div align=right>74,793</div>
</td>

<td VALIGN=TOP WIDTH="3%">&nbsp;</td>

<td VALIGN=TOP WIDTH="4%">$</td>

<td VALIGN=TOP WIDTH="13%">
<div align=right>52,750</div>
</td>
</tr>

<tr>
<td VALIGN=TOP WIDTH="64%">Receivables, Net</td>

<td VALIGN=TOP WIDTH="4%">&nbsp;</td>

<td VALIGN=TOP WIDTH="13%">
<div align=right>74,850</div>
</td>

<td VALIGN=TOP WIDTH="3%">&nbsp;</td>

<td VALIGN=TOP WIDTH="4%">&nbsp;</td>

<td VALIGN=TOP WIDTH="13%">
<div align=right>64,534</div>
</td>
</tr>

<tr>
<td VALIGN=TOP WIDTH="64%">Inventories, Net</td>

<td VALIGN=TOP WIDTH="4%">&nbsp;</td>

<td VALIGN=TOP WIDTH="13%">
<div align=right>409,961</div>
</td>

<td VALIGN=TOP WIDTH="3%">&nbsp;</td>

<td VALIGN=TOP WIDTH="4%">&nbsp;</td>

<td VALIGN=TOP WIDTH="13%">
<div align=right>376,602</div>
</td>
</tr>

<tr>
<td VALIGN=TOP WIDTH="64%">Other Current Assets</td>

<td VALIGN=BOTTOM WIDTH="4%">
<hr ALIGN=RIGHT NOSHADE WIDTH="100%"></td>

<td VALIGN=TOP WIDTH="13%">
<div align=right>17,963
<hr ALIGN=RIGHT NOSHADE WIDTH="100%"></div>
</td>

<td VALIGN=TOP WIDTH="3%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="4%">
<hr ALIGN=RIGHT NOSHADE WIDTH="100%"></td>

<td VALIGN=BOTTOM WIDTH="13%">
<div align=right>24,717
<hr ALIGN=RIGHT NOSHADE WIDTH="100%"></div>
</td>
</tr>

<tr>
<td VALIGN=TOP WIDTH="64%">&nbsp;&nbsp; Total Current Assets</td>

<td VALIGN=TOP WIDTH="4%">&nbsp;</td>

<td VALIGN=TOP WIDTH="13%">
<div align=right>577,567</div>
</td>

<td VALIGN=TOP WIDTH="3%">&nbsp;</td>

<td VALIGN=TOP WIDTH="4%">&nbsp;</td>

<td VALIGN=TOP WIDTH="13%">
<div align=right>518,603</div>
</td>
</tr>

<tr>
<td VALIGN=TOP WIDTH="64%">&nbsp;</td>

<td VALIGN=TOP WIDTH="4%">&nbsp;</td>

<td VALIGN=TOP WIDTH="13%">&nbsp;</td>

<td VALIGN=TOP WIDTH="3%">&nbsp;</td>

<td VALIGN=TOP WIDTH="4%">&nbsp;</td>

<td VALIGN=TOP WIDTH="13%">&nbsp;</td>
</tr>

<tr>
<td VALIGN=TOP WIDTH="64%">Property, Plant and Equipment - Net</td>

<td VALIGN=TOP WIDTH="4%">&nbsp;</td>

<td VALIGN=TOP WIDTH="13%">
<div align=right>89,740</div>
</td>

<td VALIGN=TOP WIDTH="3%">&nbsp;</td>

<td VALIGN=TOP WIDTH="4%">&nbsp;</td>

<td VALIGN=TOP WIDTH="13%">
<div align=right>84,807</div>
</td>
</tr>

<tr>
<td VALIGN=TOP WIDTH="64%">Other Assets</td>

<td VALIGN=BOTTOM WIDTH="4%">
<hr ALIGN=RIGHT NOSHADE WIDTH="100%"></td>

<td VALIGN=TOP WIDTH="13%">
<div align=right>108,788
<hr ALIGN=RIGHT NOSHADE WIDTH="100%"></div>
</td>

<td VALIGN=TOP WIDTH="3%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="4%">
<hr ALIGN=RIGHT NOSHADE WIDTH="100%"></td>

<td VALIGN=TOP WIDTH="13%">
<div align=right>104,491
<hr ALIGN=RIGHT NOSHADE WIDTH="100%"></div>
</td>
</tr>

<tr>
<td VALIGN=TOP WIDTH="64%">&nbsp;</td>

<td VALIGN=TOP WIDTH="4%">$
<hr ALIGN=RIGHT SIZE=4 NOSHADE WIDTH="100%"></td>

<td VALIGN=TOP WIDTH="13%">
<div align=right>776,095
<hr ALIGN=RIGHT SIZE=4 NOSHADE WIDTH="100%"></div>
</td>

<td VALIGN=TOP WIDTH="3%">&nbsp;</td>

<td VALIGN=TOP WIDTH="4%">$
<hr ALIGN=RIGHT SIZE=4 NOSHADE WIDTH="100%"></td>

<td VALIGN=TOP WIDTH="13%">
<div align=right>707,901
<hr ALIGN=RIGHT SIZE=4 NOSHADE WIDTH="100%"></div>
</td>
</tr>

<tr>
<td VALIGN=TOP WIDTH="64%">&nbsp;</td>

<td VALIGN=TOP WIDTH="4%">&nbsp;</td>

<td VALIGN=TOP WIDTH="13%">&nbsp;</td>

<td VALIGN=TOP WIDTH="3%">&nbsp;</td>

<td VALIGN=TOP WIDTH="4%">&nbsp;</td>

<td VALIGN=TOP WIDTH="13%">&nbsp;</td>
</tr>

<tr>
<td VALIGN=TOP WIDTH="64%"><u>LIABILITIES AND SHAREHOLDERS' EQUITY</u></td>

<td VALIGN=TOP WIDTH="4%">&nbsp;</td>

<td VALIGN=TOP WIDTH="13%">&nbsp;</td>

<td VALIGN=TOP WIDTH="3%">&nbsp;</td>

<td VALIGN=TOP WIDTH="4%">&nbsp;</td>

<td VALIGN=TOP WIDTH="13%">&nbsp;</td>
</tr>

<tr>
<td VALIGN=TOP WIDTH="64%">&nbsp;</td>

<td VALIGN=TOP WIDTH="4%">&nbsp;</td>

<td VALIGN=TOP WIDTH="13%">&nbsp;</td>

<td VALIGN=TOP WIDTH="3%">&nbsp;</td>

<td VALIGN=TOP WIDTH="4%">&nbsp;</td>

<td VALIGN=TOP WIDTH="13%">&nbsp;</td>
</tr>

<tr>
<td VALIGN=TOP WIDTH="64%">Notes Payable</td>

<td VALIGN=TOP WIDTH="4%">$</td>

<td VALIGN=TOP WIDTH="13%">
<div align=right>43,500</div>
</td>

<td VALIGN=TOP WIDTH="3%">&nbsp;</td>

<td VALIGN=TOP WIDTH="4%">$</td>

<td VALIGN=TOP WIDTH="13%">
<div align=right>16,000</div>
</td>
</tr>

<tr>
<td VALIGN=TOP WIDTH="64%">Trade Accounts Payable</td>

<td VALIGN=TOP WIDTH="4%">&nbsp;</td>

<td VALIGN=TOP WIDTH="13%">
<div align=right>108,617</div>
</td>

<td VALIGN=TOP WIDTH="3%">&nbsp;</td>

<td VALIGN=TOP WIDTH="4%">&nbsp;</td>

<td VALIGN=TOP WIDTH="13%">
<div align=right>107,894</div>
</td>
</tr>

<tr>
<td VALIGN=TOP WIDTH="64%">Accrued Expenses</td>

<td VALIGN=TOP WIDTH="4%">&nbsp;</td>

<td VALIGN=TOP WIDTH="13%">
<div align=right>92,291</div>
</td>

<td VALIGN=TOP WIDTH="3%">&nbsp;</td>

<td VALIGN=TOP WIDTH="4%">&nbsp;</td>

<td VALIGN=TOP WIDTH="13%">
<div align=right>93,613</div>
</td>
</tr>

<tr>
<td VALIGN=TOP WIDTH="64%">Income Taxes</td>

<td VALIGN=TOP WIDTH="4%">&nbsp;</td>

<td VALIGN=TOP WIDTH="13%">
<div align=right>11,811</div>
</td>

<td VALIGN=TOP WIDTH="3%">&nbsp;</td>

<td VALIGN=TOP WIDTH="4%">&nbsp;</td>

<td VALIGN=TOP WIDTH="13%">
<div align=right>14,272</div>
</td>
</tr>

<tr>
<td VALIGN=TOP WIDTH="64%">Current Maturities of Long-Term Debt</td>

<td VALIGN=BOTTOM WIDTH="4%">
<hr ALIGN=RIGHT NOSHADE WIDTH="100%"></td>

<td VALIGN=TOP WIDTH="13%">
<div align=right>-
<hr ALIGN=RIGHT NOSHADE WIDTH="100%"></div>
</td>

<td VALIGN=TOP WIDTH="3%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="4%">
<hr ALIGN=RIGHT NOSHADE WIDTH="100%"></td>

<td VALIGN=TOP WIDTH="13%">
<div align=right>3,500
<hr ALIGN=RIGHT NOSHADE WIDTH="100%"></div>
</td>
</tr>

<tr>
<td VALIGN=TOP WIDTH="64%">&nbsp;&nbsp; Total Current Liabilities</td>

<td VALIGN=TOP WIDTH="4%">&nbsp;</td>

<td VALIGN=TOP WIDTH="13%">
<div align=right>256,219</div>
</td>

<td VALIGN=TOP WIDTH="3%">&nbsp;</td>

<td VALIGN=TOP WIDTH="4%">&nbsp;</td>

<td VALIGN=TOP WIDTH="13%">
<div align=right>235,279</div>
</td>
</tr>

<tr>
<td VALIGN=TOP WIDTH="64%">&nbsp;</td>

<td VALIGN=TOP WIDTH="4%">&nbsp;</td>

<td VALIGN=TOP WIDTH="13%">&nbsp;</td>

<td VALIGN=TOP WIDTH="3%">&nbsp;</td>

<td VALIGN=TOP WIDTH="4%">&nbsp;</td>

<td VALIGN=TOP WIDTH="13%">&nbsp;</td>
</tr>

<tr>
<td VALIGN=TOP WIDTH="64%">Long-Term Debt and Capitalized Leases</td>

<td VALIGN=TOP WIDTH="4%">&nbsp;</td>

<td VALIGN=TOP WIDTH="13%">
<div align=right>100,000</div>
</td>

<td VALIGN=TOP WIDTH="3%">&nbsp;</td>

<td VALIGN=TOP WIDTH="4%">&nbsp;</td>

<td VALIGN=TOP WIDTH="13%">
<div align=right>100,000</div>
</td>
</tr>

<tr>
<td VALIGN=TOP WIDTH="64%">Other Liabilities</td>

<td VALIGN=TOP WIDTH="4%">&nbsp;</td>

<td VALIGN=TOP WIDTH="13%">
<div align=right>29,550</div>
</td>

<td VALIGN=TOP WIDTH="3%">&nbsp;</td>

<td VALIGN=TOP WIDTH="4%">&nbsp;</td>

<td VALIGN=TOP WIDTH="13%">
<div align=right>28,317</div>
</td>
</tr>

<tr>
<td VALIGN=TOP WIDTH="64%">Shareholders' Equity</td>

<td VALIGN=TOP WIDTH="4%">&nbsp;
<hr ALIGN=RIGHT NOSHADE WIDTH="100%"></td>

<td VALIGN=TOP WIDTH="13%">
<div align=right>390,326
<hr ALIGN=RIGHT NOSHADE WIDTH="100%"></div>
</td>

<td VALIGN=TOP WIDTH="3%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="4%">
<hr ALIGN=RIGHT NOSHADE WIDTH="100%"></td>

<td VALIGN=TOP WIDTH="13%">
<div align=right>344,305
<hr ALIGN=RIGHT NOSHADE WIDTH="100%"></div>
</td>
</tr>

<tr>
<td VALIGN=TOP WIDTH="64%">&nbsp;</td>

<td VALIGN=TOP WIDTH="4%">$
<hr ALIGN=RIGHT SIZE=4 NOSHADE WIDTH="100%"></td>

<td VALIGN=TOP WIDTH="13%">
<div align=right>776,095
<hr ALIGN=RIGHT SIZE=4 NOSHADE WIDTH="100%"></div>
</td>

<td VALIGN=TOP WIDTH="3%">&nbsp;</td>

<td VALIGN=TOP WIDTH="4%">$
<hr ALIGN=RIGHT SIZE=4 NOSHADE WIDTH="100%"></td>

<td VALIGN=TOP WIDTH="13%">
<div align=right>707,901
<hr ALIGN=RIGHT SIZE=4 NOSHADE WIDTH="100%"></div>
</td>
</tr>
</table>

<center>
<p>Page 4 of 6
<br>
<hr ALIGN=RIGHT NOSHADE WIDTH="100%">
<p><b>BROWN SHOE COMPANY, INC.</b>
<br><b>CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS</b>
<br>(Unaudited)</center>

<p><i>(Thousands, except per share data)</i>
<table BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%" >
<tr>
<td VALIGN=TOP WIDTH="40%">&nbsp;</td>

<td VALIGN=BOTTOM COLSPAN="5" WIDTH="29%">
<center>Thirteen Weeks Ended</center>
</td>

<td VALIGN=BOTTOM WIDTH="1%">&nbsp;</td>

<td VALIGN=BOTTOM COLSPAN="6" WIDTH="29%">
<center>Thirty-Nine Weeks Ended</center>
</td>

<td VALIGN=BOTTOM WIDTH="1%">&nbsp;</td>
</tr>

<tr>
<td VALIGN=TOP WIDTH="40%" HEIGHT="2"></td>

<td VALIGN=BOTTOM COLSPAN="5" WIDTH="29%" HEIGHT="2">
<hr ALIGN=RIGHT NOSHADE WIDTH="100%"></td>

<td VALIGN=BOTTOM WIDTH="1%" HEIGHT="2"></td>

<td VALIGN=BOTTOM COLSPAN="6" WIDTH="29%" HEIGHT="2">
<hr ALIGN=RIGHT NOSHADE WIDTH="100%"></td>

<td VALIGN=BOTTOM WIDTH="1%" HEIGHT="2"></td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="40%">&nbsp;</td>

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="14%">
<center>October 30,&nbsp;
<br>2004</center>
</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="13%">
<center>November 1,&nbsp;
<br>2003</center>
</td>

<td VALIGN=BOTTOM WIDTH="1%">&nbsp;</td>

<td VALIGN=BOTTOM COLSPAN="3" WIDTH="14%">
<center>October 30,&nbsp;
<br>2004</center>
</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="13%">
<center>November 1,
<br>2003</center>
</td>

<td VALIGN=BOTTOM WIDTH="1%">&nbsp;</td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="40%">&nbsp;</td>

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="14%">
<hr ALIGN=RIGHT NOSHADE WIDTH="100%"></td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="13%">
<hr ALIGN=RIGHT NOSHADE WIDTH="100%"></td>

<td VALIGN=BOTTOM WIDTH="1%">&nbsp;</td>

<td VALIGN=BOTTOM COLSPAN="3" WIDTH="14%">
<hr ALIGN=RIGHT NOSHADE WIDTH="100%"></td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="13%">
<hr ALIGN=RIGHT NOSHADE WIDTH="100%"></td>

<td VALIGN=BOTTOM WIDTH="1%">&nbsp;</td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="40%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="13%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="11%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="1%">&nbsp;</td>

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="12%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="12%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="1%">&nbsp;</td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="40%">Net Sales</td>

<td VALIGN=BOTTOM WIDTH="2%">$</td>

<td VALIGN=BOTTOM WIDTH="13%">
<div align=right>514,825</div>
</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">$</td>

<td VALIGN=BOTTOM WIDTH="11%">
<div align=right>493,433</div>
</td>

<td VALIGN=BOTTOM WIDTH="1%">&nbsp;</td>

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="2%">$</td>

<td VALIGN=BOTTOM WIDTH="12%">
<div align=right>1,465,314</div>
</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">$</td>

<td VALIGN=BOTTOM WIDTH="12%">
<div align=right>1,398,261</div>
</td>

<td VALIGN=BOTTOM WIDTH="1%">&nbsp;</td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="40%">Cost of Goods Sold</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="13%">
<div align=right>306,782</div>
</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="11%">
<div align=right>288,721</div>
</td>

<td VALIGN=BOTTOM WIDTH="1%">&nbsp;</td>

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="12%">
<div align=right>868,661</div>
</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="12%">
<div align=right>820,557</div>
</td>

<td VALIGN=BOTTOM WIDTH="1%">&nbsp;</td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="40%">&nbsp;</td>

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="14%">
<hr ALIGN=RIGHT NOSHADE WIDTH="100%"></td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="13%">
<hr ALIGN=RIGHT NOSHADE WIDTH="100%"></td>

<td VALIGN=BOTTOM WIDTH="1%">&nbsp;</td>

<td VALIGN=BOTTOM COLSPAN="3" WIDTH="14%">
<hr ALIGN=RIGHT NOSHADE WIDTH="100%"></td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="13%">
<hr ALIGN=RIGHT NOSHADE WIDTH="100%"></td>

<td VALIGN=BOTTOM WIDTH="1%">&nbsp;</td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="40%">Gross Profit</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="13%">
<div align=right>208,043</div>
</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="11%">
<div align=right>204,712</div>
</td>

<td VALIGN=BOTTOM WIDTH="1%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="12%">
<div align=right>596,653</div>
</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="12%">
<div align=right>577,704</div>
</td>

<td VALIGN=BOTTOM WIDTH="1%">&nbsp;</td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="40%">- % of Sales</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="13%">
<div align=right>40.4%</div>
</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="11%">
<div align=right>41.5%</div>
</td>

<td VALIGN=BOTTOM WIDTH="1%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="12%">
<div align=right>40.7%</div>
</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="12%">
<div align=right>41.3%</div>
</td>

<td VALIGN=BOTTOM WIDTH="1%">&nbsp;</td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="40%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%"></td>

<td VALIGN=BOTTOM WIDTH="13%"></td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%"></td>

<td VALIGN=BOTTOM WIDTH="11%"></td>

<td VALIGN=BOTTOM WIDTH="1%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%"></td>

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="12%"></td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%"></td>

<td VALIGN=BOTTOM WIDTH="12%"></td>

<td VALIGN=BOTTOM WIDTH="1%">&nbsp;</td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="40%">Selling &amp; Administrative Expenses</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="13%">
<div align=right>179,762</div>
</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="11%">
<div align=right>172,278</div>
</td>

<td VALIGN=BOTTOM WIDTH="1%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="12%">
<div align=right>540,177</div>
</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="12%">
<div align=right>511,317</div>
</td>

<td VALIGN=BOTTOM WIDTH="1%">&nbsp;</td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="40%">- % of Sales</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="13%">
<div align=right>34.9%</div>
</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="11%">
<div align=right>34.9%</div>
</td>

<td VALIGN=BOTTOM WIDTH="1%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="12%">
<div align=right>36.9%</div>
</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="12%">
<div align=right>36.6%</div>
</td>

<td VALIGN=BOTTOM WIDTH="1%">&nbsp;</td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="40%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">
<hr ALIGN=RIGHT NOSHADE WIDTH="100%"></td>

<td VALIGN=BOTTOM WIDTH="13%">
<hr ALIGN=RIGHT NOSHADE WIDTH="100%"></td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">
<hr ALIGN=RIGHT NOSHADE WIDTH="100%"></td>

<td VALIGN=BOTTOM WIDTH="11%">
<hr ALIGN=RIGHT NOSHADE WIDTH="100%"></td>

<td VALIGN=BOTTOM WIDTH="1%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">
<hr ALIGN=RIGHT NOSHADE WIDTH="100%"></td>

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="12%">
<hr ALIGN=RIGHT NOSHADE WIDTH="100%"></td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">
<hr ALIGN=RIGHT NOSHADE WIDTH="100%"></td>

<td VALIGN=BOTTOM WIDTH="12%">
<hr ALIGN=RIGHT NOSHADE WIDTH="100%"></td>

<td VALIGN=BOTTOM WIDTH="1%">&nbsp;</td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="40%">Operating Earnings</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="13%">
<div align=right>28,281</div>
</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="11%">
<div align=right>32,434</div>
</td>

<td VALIGN=BOTTOM WIDTH="1%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="12%">
<div align=right>56,476</div>
</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="12%">
<div align=right>66,387</div>
</td>

<td VALIGN=BOTTOM WIDTH="1%">&nbsp;</td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="40%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="13%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="11%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="1%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="12%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="12%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="1%">&nbsp;</td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="40%">Interest Expense, Net</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="13%">
<div align=right>1,759</div>
</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="11%">
<div align=right>2,138</div>
</td>

<td VALIGN=BOTTOM WIDTH="1%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="12%">
<div align=right>6,083</div>
</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="12%">
<div align=right>7,361</div>
</td>

<td VALIGN=BOTTOM WIDTH="1%">&nbsp;</td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="40%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">
<hr ALIGN=RIGHT NOSHADE WIDTH="100%"></td>

<td VALIGN=BOTTOM WIDTH="13%">
<hr ALIGN=RIGHT NOSHADE WIDTH="100%"></td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">
<hr ALIGN=RIGHT NOSHADE WIDTH="100%"></td>

<td VALIGN=BOTTOM WIDTH="11%">
<hr ALIGN=RIGHT NOSHADE WIDTH="100%"></td>

<td VALIGN=BOTTOM WIDTH="1%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">
<hr ALIGN=RIGHT NOSHADE WIDTH="100%"></td>

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="12%">
<hr ALIGN=RIGHT NOSHADE WIDTH="100%"></td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">
<hr ALIGN=RIGHT NOSHADE WIDTH="100%"></td>

<td VALIGN=BOTTOM WIDTH="12%">
<hr ALIGN=RIGHT NOSHADE WIDTH="100%"></td>

<td VALIGN=BOTTOM WIDTH="1%">&nbsp;</td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="40%">Earnings Before Income Taxes</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="13%">
<div align=right>26,522</div>
</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="11%">
<div align=right>30,296</div>
</td>

<td VALIGN=BOTTOM WIDTH="1%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="12%">
<div align=right>50,393</div>
</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="12%">
<div align=right>59,026</div>
</td>

<td VALIGN=BOTTOM WIDTH="1%">&nbsp;</td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="40%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="13%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="11%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="1%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="12%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="12%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="1%">&nbsp;</td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="40%">Income Tax Provision</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="13%">
<div align=right>7,702</div>
</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="11%">
<div align=right>9,096</div>
</td>

<td VALIGN=BOTTOM WIDTH="1%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="12%">
<div align=right>15,192</div>
</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="12%">
<div align=right>17,267</div>
</td>

<td VALIGN=BOTTOM WIDTH="1%">&nbsp;</td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="40%">&nbsp;</td>

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="14%">
<hr ALIGN=RIGHT NOSHADE WIDTH="100%"></td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="13%">
<hr ALIGN=RIGHT NOSHADE WIDTH="100%"></td>

<td VALIGN=BOTTOM WIDTH="1%">&nbsp;</td>

<td VALIGN=BOTTOM COLSPAN="3" WIDTH="14%">
<hr ALIGN=RIGHT NOSHADE WIDTH="100%"></td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="13%">
<hr ALIGN=RIGHT NOSHADE WIDTH="100%"></td>

<td VALIGN=BOTTOM WIDTH="1%">&nbsp;</td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="40%">NET EARNINGS</td>

<td VALIGN=BOTTOM WIDTH="2%">$</td>

<td VALIGN=BOTTOM WIDTH="13%">
<div align=right>18,820</div>
</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">$</td>

<td VALIGN=BOTTOM WIDTH="11%">
<div align=right>21,200</div>
</td>

<td VALIGN=BOTTOM WIDTH="1%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">$</td>

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="12%">
<div align=right>35,201</div>
</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">$</td>

<td VALIGN=BOTTOM WIDTH="12%">
<div align=right>41,759</div>
</td>

<td VALIGN=BOTTOM WIDTH="1%">&nbsp;</td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="40%">&nbsp;</td>

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="14%">
<hr ALIGN=RIGHT SIZE=4 NOSHADE WIDTH="100%"></td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="13%">
<hr ALIGN=RIGHT SIZE=4 NOSHADE WIDTH="100%"></td>

<td VALIGN=BOTTOM WIDTH="1%">&nbsp;</td>

<td VALIGN=BOTTOM COLSPAN="3" WIDTH="14%">
<hr ALIGN=RIGHT SIZE=4 NOSHADE WIDTH="100%"></td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="13%">
<hr ALIGN=RIGHT SIZE=4 NOSHADE WIDTH="100%"></td>

<td VALIGN=BOTTOM WIDTH="1%">&nbsp;</td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="40%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="13%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="11%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="1%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="12%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="12%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="1%">&nbsp;</td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="40%">Basic Net Earnings per Common Share</td>

<td VALIGN=BOTTOM WIDTH="2%">$</td>

<td VALIGN=BOTTOM WIDTH="13%">
<div align=right>1.05</div>
</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">$</td>

<td VALIGN=BOTTOM WIDTH="11%">
<div align=right>1.19</div>
</td>

<td VALIGN=BOTTOM WIDTH="1%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">
<div align=right>$</div>
</td>

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="12%">
<div align=right>1.97</div>
</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">
<div align=right>$</div>
</td>

<td VALIGN=BOTTOM WIDTH="12%">
<div align=right>2.37</div>
</td>

<td VALIGN=BOTTOM WIDTH="1%">&nbsp;</td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="40%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">
<hr ALIGN=RIGHT SIZE=4 NOSHADE WIDTH="100%"></td>

<td VALIGN=BOTTOM WIDTH="13%">
<hr ALIGN=RIGHT SIZE=4 NOSHADE WIDTH="100%"></td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">
<hr ALIGN=RIGHT SIZE=4 NOSHADE WIDTH="100%"></td>

<td VALIGN=BOTTOM WIDTH="11%">
<hr ALIGN=RIGHT SIZE=4 NOSHADE WIDTH="100%"></td>

<td VALIGN=BOTTOM WIDTH="1%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">
<hr ALIGN=RIGHT SIZE=4 NOSHADE WIDTH="100%"></td>

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="12%">
<hr ALIGN=RIGHT SIZE=4 NOSHADE WIDTH="100%"></td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">
<hr ALIGN=RIGHT SIZE=4 NOSHADE WIDTH="100%"></td>

<td VALIGN=BOTTOM WIDTH="12%">
<hr ALIGN=RIGHT SIZE=4 NOSHADE WIDTH="100%"></td>

<td VALIGN=BOTTOM WIDTH="1%">&nbsp;</td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="40%">Diluted Net Earnings per Common Share</td>

<td VALIGN=BOTTOM WIDTH="2%">$</td>

<td VALIGN=BOTTOM WIDTH="13%">
<div align=right>1.01</div>
</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">$</td>

<td VALIGN=BOTTOM WIDTH="11%">
<div align=right>1.13</div>
</td>

<td VALIGN=BOTTOM WIDTH="1%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">
<div align=right>$</div>
</td>

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="12%">
<div align=right>1.87</div>
</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">
<div align=right>$</div>
</td>

<td VALIGN=BOTTOM WIDTH="12%">
<div align=right>2.25</div>
</td>

<td VALIGN=BOTTOM WIDTH="1%">&nbsp;</td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="40%">&nbsp;</td>

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="14%">
<hr ALIGN=RIGHT SIZE=4 NOSHADE WIDTH="100%"></td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="13%">
<hr ALIGN=RIGHT SIZE=4 NOSHADE WIDTH="100%"></td>

<td VALIGN=BOTTOM WIDTH="1%">&nbsp;</td>

<td VALIGN=BOTTOM COLSPAN="3" WIDTH="14%">
<hr ALIGN=RIGHT SIZE=4 NOSHADE WIDTH="100%"></td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="13%">
<hr ALIGN=RIGHT SIZE=4 NOSHADE WIDTH="100%"></td>

<td VALIGN=BOTTOM WIDTH="1%">&nbsp;</td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="40%">Basic Number of Shares</td>

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="14%">
<div align=right>17,943</div>
</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="13%">
<div align=right>17,761</div>
</td>

<td VALIGN=BOTTOM WIDTH="1%">&nbsp;</td>

<td VALIGN=BOTTOM COLSPAN="3" WIDTH="14%">
<div align=right>17,902</div>
</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="13%">
<div align=right>17,634</div>
</td>

<td VALIGN=BOTTOM WIDTH="1%">&nbsp;</td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="40%">&nbsp;</td>

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="14%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="13%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="1%">&nbsp;</td>

<td VALIGN=BOTTOM COLSPAN="3" WIDTH="14%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="13%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="1%">&nbsp;</td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="40%">Diluted Number of Shares</td>

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="14%">
<div align=right>18,649</div>
</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="13%">
<div align=right>18,698</div>
</td>

<td VALIGN=BOTTOM WIDTH="1%">&nbsp;</td>

<td VALIGN=BOTTOM COLSPAN="3" WIDTH="14%">
<div align=right>18,852</div>
</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="13%">
<div align=right>18,534</div>
</td>

<td VALIGN=BOTTOM WIDTH="1%">&nbsp;</td>
</tr>
</table>

<center>
<p>Page 5 of 6
<br>
<hr ALIGN=RIGHT NOSHADE WIDTH="100%">
<p><b>BROWN SHOE COMPANY, INC.</b>
<br><b>CONDENSED CONSOLIDATED CASH FLOWS</b>
<br><b>(Unaudited)</b></center>

<p><b><i>(Thousands)</i></b>
<center><table BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%" >
<tr>
<td VALIGN=BOTTOM WIDTH="60%">&nbsp;</td>

<td VALIGN=BOTTOM COLSPAN="5" WIDTH="38%">
<center>Thirty-nine Weeks Ended</center>
</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="60%" HEIGHT="2"></td>

<td VALIGN=BOTTOM COLSPAN="5" WIDTH="38%" HEIGHT="2">
<hr ALIGN=RIGHT NOSHADE WIDTH="100%"></td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="2"></td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="60%">&nbsp;</td>

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="16%">
<center>October 30,
<br>2004
<hr ALIGN=RIGHT NOSHADE WIDTH="100%"></center>
</td>

<td VALIGN=BOTTOM WIDTH="8%">&nbsp;</td>

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="14%">
<center>November 1,
<br>2003
<hr ALIGN=RIGHT NOSHADE WIDTH="100%"></center>
</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="60%" HEIGHT="2"></td>

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="16%" HEIGHT="2"></td>

<td VALIGN=BOTTOM WIDTH="8%" HEIGHT="2"></td>

<td VALIGN=BOTTOM COLSPAN="2" WIDTH="14%" HEIGHT="2"></td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="2"></td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="60%">OPERATING ACTIVITIES:</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="14%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="8%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="12%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="60%">&nbsp;&nbsp; Net earnings</td>

<td VALIGN=BOTTOM WIDTH="2%">$</td>

<td VALIGN=BOTTOM WIDTH="14%">
<div align=right>35,201</div>
</td>

<td VALIGN=BOTTOM WIDTH="8%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">$</td>

<td VALIGN=BOTTOM WIDTH="12%">
<div align=right>41,759</div>
</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="60%">&nbsp;&nbsp; Adjustments to reconcile net
earnings to&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="14%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="8%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="12%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="60%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash provided
(used) by operating activities:</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="14%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="8%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="12%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="60%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depreciation
and amortization</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="14%">
<div align=right>18,251</div>
</td>

<td VALIGN=BOTTOM WIDTH="8%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="12%">
<div align=right>19,053</div>
</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="60%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Share based
compensation (income) expense</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="14%">
<div align=right>(1,480</div>
</td>

<td VALIGN=BOTTOM WIDTH="8%">)</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="12%">
<div align=right>3,299</div>
</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="60%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Tax benefit
related to share-based plans</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="14%">
<div align=right>913</div>
</td>

<td VALIGN=BOTTOM WIDTH="8%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="12%">
<div align=right>-</div>
</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="60%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loss on disposal
or impairment of facilities and equipment</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="14%">
<div align=right>2,220</div>
</td>

<td VALIGN=BOTTOM WIDTH="8%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="12%">
<div align=right>3,746</div>
</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="60%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Provision
(recoveries) for losses on accounts receivable</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="14%">
<div align=right>(342</div>
</td>

<td VALIGN=BOTTOM WIDTH="8%">)</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="12%">
<div align=right>278</div>
</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="60%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Changes in
operating assets and liabilities:</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="14%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="8%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="12%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="60%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Receivables</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="14%">
<div align=right>7,422</div>
</td>

<td VALIGN=BOTTOM WIDTH="8%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="12%">
<div align=right>17,674</div>
</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="60%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Inventories</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="14%">
<div align=right>(33,751</div>
</td>

<td VALIGN=BOTTOM WIDTH="8%">)</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="12%">
<div align=right>15,982</div>
</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="60%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Prepaid expenses and other current assets</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="14%">
<div align=right>(2,075</div>
</td>

<td VALIGN=BOTTOM WIDTH="8%">)</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="12%">
<div align=right>(3,739</div>
</td>

<td VALIGN=BOTTOM WIDTH="2%">)</td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="60%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Trade payables and accrued expenses</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="14%">
<div align=right>(12,476</div>
</td>

<td VALIGN=BOTTOM WIDTH="8%">)</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="12%">
<div align=right>(31,198</div>
</td>

<td VALIGN=BOTTOM WIDTH="2%">)</td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="60%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Income taxes</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="14%">
<div align=right>8,851</div>
</td>

<td VALIGN=BOTTOM WIDTH="8%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="12%">
<div align=right>8,920</div>
</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="60%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other, net</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="14%">
<div align=right>1,164</div>
</td>

<td VALIGN=BOTTOM WIDTH="8%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="12%">
<div align=right>(182</div>
</td>

<td VALIGN=BOTTOM WIDTH="2%">)</td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="60%" HEIGHT="6"></td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="6">
<hr ALIGN=RIGHT NOSHADE WIDTH="100%"></td>

<td VALIGN=BOTTOM WIDTH="14%" HEIGHT="6">
<hr ALIGN=RIGHT NOSHADE WIDTH="100%"></td>

<td VALIGN=BOTTOM WIDTH="8%" HEIGHT="6"></td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="6">
<hr ALIGN=RIGHT NOSHADE WIDTH="100%"></td>

<td VALIGN=BOTTOM WIDTH="12%" HEIGHT="6">
<hr ALIGN=RIGHT NOSHADE WIDTH="100%"></td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="6"></td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="60%">Net cash provided by operating activities</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="14%">
<div align=right>23,898</div>
</td>

<td VALIGN=BOTTOM WIDTH="8%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="12%">
<div align=right>75,592</div>
</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="60%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">
<hr ALIGN=RIGHT NOSHADE WIDTH="100%"></td>

<td VALIGN=BOTTOM WIDTH="14%">
<hr ALIGN=RIGHT NOSHADE WIDTH="100%"></td>

<td VALIGN=BOTTOM WIDTH="8%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">
<hr ALIGN=RIGHT NOSHADE WIDTH="100%"></td>

<td VALIGN=BOTTOM WIDTH="12%">
<hr ALIGN=RIGHT NOSHADE WIDTH="100%"></td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="60%">INVESTING ACTIVITIES:</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="14%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="8%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="12%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="60%">&nbsp;&nbsp; Capital expenditures</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="14%">
<div align=right>(23,880</div>
</td>

<td VALIGN=BOTTOM WIDTH="8%">)</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="12%">
<div align=right>(21,668</div>
</td>

<td VALIGN=BOTTOM WIDTH="2%">)</td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="60%">&nbsp;&nbsp; Other</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="14%">
<div align=right>153&nbsp;</div>
</td>

<td VALIGN=BOTTOM WIDTH="8%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="12%">
<div align=right>368</div>
</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="60%" HEIGHT="6"></td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="6">
<hr ALIGN=RIGHT NOSHADE WIDTH="100%"></td>

<td VALIGN=BOTTOM WIDTH="14%" HEIGHT="6">
<hr ALIGN=RIGHT NOSHADE WIDTH="100%"></td>

<td VALIGN=BOTTOM WIDTH="8%" HEIGHT="6"></td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="6">
<hr ALIGN=RIGHT NOSHADE WIDTH="100%"></td>

<td VALIGN=BOTTOM WIDTH="12%" HEIGHT="6">
<hr ALIGN=RIGHT NOSHADE WIDTH="100%"></td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="6"></td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="60%">Net cash used by investing activities</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="14%">
<div align=right>(23,727</div>
</td>

<td VALIGN=BOTTOM WIDTH="8%">)</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="12%">
<div align=right>(21,300</div>
</td>

<td VALIGN=BOTTOM WIDTH="2%">)</td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="60%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">
<hr ALIGN=RIGHT NOSHADE WIDTH="100%"></td>

<td VALIGN=BOTTOM WIDTH="14%">
<hr ALIGN=RIGHT NOSHADE WIDTH="100%"></td>

<td VALIGN=BOTTOM WIDTH="8%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">
<hr ALIGN=RIGHT NOSHADE WIDTH="100%"></td>

<td VALIGN=BOTTOM WIDTH="12%">
<hr ALIGN=RIGHT NOSHADE WIDTH="100%"></td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="60%">FINANCING ACTIVITIES:</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="14%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="8%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="12%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="60%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="14%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="8%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="12%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="60%">&nbsp;&nbsp; Increase (decrease) in short-term
notes payable</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="14%">
<div align=right>24,000</div>
</td>

<td VALIGN=BOTTOM WIDTH="8%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="12%">
<div align=right>(13,000</div>
</td>

<td VALIGN=BOTTOM WIDTH="2%">)</td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="60%">&nbsp;&nbsp; Repayments of long-term debt</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="14%">
<div align=right>-</div>
</td>

<td VALIGN=BOTTOM WIDTH="8%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="12%">
<div align=right>(20,000</div>
</td>

<td VALIGN=BOTTOM WIDTH="2%">)</td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="60%">&nbsp;&nbsp; Debt issuance costs</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="14%">
<div align=right>(1,274</div>
</td>

<td VALIGN=BOTTOM WIDTH="8%">)</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="12%">
<div align=right>-</div>
</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="60%">&nbsp;&nbsp; Proceeds from stock options
exercised</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="14%">
<div align=right>1,687&nbsp;</div>
</td>

<td VALIGN=BOTTOM WIDTH="8%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="12%">
<div align=right>4,696</div>
</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="60%">&nbsp;&nbsp; Dividends paid</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="14%">
<div align=right>(5,448</div>
</td>

<td VALIGN=BOTTOM WIDTH="8%">)</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="12%">
<div align=right>(5,359</div>
</td>

<td VALIGN=BOTTOM WIDTH="2%">)</td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="60%" HEIGHT="6"></td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="6">
<hr ALIGN=RIGHT NOSHADE WIDTH="100%"></td>

<td VALIGN=BOTTOM WIDTH="14%" HEIGHT="6">
<hr ALIGN=RIGHT NOSHADE WIDTH="100%"></td>

<td VALIGN=BOTTOM WIDTH="8%" HEIGHT="6"></td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="6">
<hr ALIGN=RIGHT NOSHADE WIDTH="100%"></td>

<td VALIGN=BOTTOM WIDTH="12%" HEIGHT="6">
<hr ALIGN=RIGHT NOSHADE WIDTH="100%"></td>

<td VALIGN=BOTTOM WIDTH="2%" HEIGHT="6"></td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="60%">Net cash provided (used) by financing activities</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="14%">
<div align=right>18,965</div>
</td>

<td VALIGN=BOTTOM WIDTH="8%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="12%">
<div align=right>(33,663</div>
</td>

<td VALIGN=BOTTOM WIDTH="2%">)</td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="60%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">
<hr ALIGN=RIGHT NOSHADE WIDTH="100%"></td>

<td VALIGN=BOTTOM WIDTH="14%">
<hr ALIGN=RIGHT NOSHADE WIDTH="100%"></td>

<td VALIGN=BOTTOM WIDTH="8%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">
<hr ALIGN=RIGHT NOSHADE WIDTH="100%"></td>

<td VALIGN=BOTTOM WIDTH="12%">
<hr ALIGN=RIGHT NOSHADE WIDTH="100%"></td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="60%">Increase in cash and cash equivalents</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="14%">
<div align=right>19,136</div>
</td>

<td VALIGN=BOTTOM WIDTH="8%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="12%">
<div align=right>20,629</div>
</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="60%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="14%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="8%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="12%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="60%">Cash and cash equivalents at beginning of
period</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="14%">
<div align=right>55,657</div>
</td>

<td VALIGN=BOTTOM WIDTH="8%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="12%">
<div align=right>32,121</div>
</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="60%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">
<hr ALIGN=RIGHT NOSHADE WIDTH="100%"></td>

<td VALIGN=BOTTOM WIDTH="14%">
<hr ALIGN=RIGHT NOSHADE WIDTH="100%"></td>

<td VALIGN=BOTTOM WIDTH="8%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">
<hr ALIGN=RIGHT NOSHADE WIDTH="100%"></td>

<td VALIGN=BOTTOM WIDTH="12%">
<hr ALIGN=RIGHT NOSHADE WIDTH="100%"></td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="60%">Cash and cash equivalents at end of period</td>

<td VALIGN=BOTTOM WIDTH="2%">$</td>

<td VALIGN=BOTTOM WIDTH="14%">
<div align=right>74,793</div>
</td>

<td VALIGN=BOTTOM WIDTH="8%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">$</td>

<td VALIGN=BOTTOM WIDTH="12%">
<div align=right>52,750</div>
</td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>
</tr>

<tr>
<td VALIGN=BOTTOM WIDTH="60%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">
<hr ALIGN=RIGHT SIZE=4 NOSHADE WIDTH="100%"></td>

<td VALIGN=BOTTOM WIDTH="14%">
<hr ALIGN=RIGHT SIZE=4 NOSHADE WIDTH="100%"></td>

<td VALIGN=BOTTOM WIDTH="8%">&nbsp;</td>

<td VALIGN=BOTTOM WIDTH="2%">
<hr ALIGN=RIGHT SIZE=4 NOSHADE WIDTH="100%"></td>

<td VALIGN=BOTTOM WIDTH="12%">
<hr ALIGN=RIGHT SIZE=4 NOSHADE WIDTH="100%"></td>

<td VALIGN=BOTTOM WIDTH="2%">&nbsp;</td>
</tr>

<tr>
<td VALIGN=BOTTOM COLSPAN="7">&nbsp;</td>
</tr>

<tr>
<td VALIGN=BOTTOM COLSPAN="7">Note: Certain prior period amounts have been
reclassified in the Condensed Consolidated Balance Sheets, Statements of
Earnings, and Cash Flows to conform to current period presentation. These
reclassifications did not affect net earnings.</td>
</tr>
</table></center>

<center>
<p>Page 6 of 6
<br>
<hr ALIGN=RIGHT SIZE=4 NOSHADE WIDTH="100%"></center>

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