General Financial Releases

Brown Shoe Calls Lawsuit in Colorado "Without Merit"

St. Louis, MO, May 8, 2003-- Brown Group Retail, Inc., a subsidiary of Brown Shoe Company, Inc., is vigorously defending against a class action lawsuit filed in March 2000 in Colorado State Court arising from its ownership of, and discontinued operations at, the former Redfield Rifle Scopes factory. The company believes that the scientific facts and record of its actions show that the lawsuit is without merit.

At issue is alleged diminution of real estate values, annoyance and discomfort in connection with environmental issues affecting parts of the neighborhoods adjacent to a manufacturing property Brown operated from 1979 to 1984 in Denver. The company has been analyzing and remediating the site for more than five years under the supervision of the Colorado Department of Public Health and Environment.

"We at Brown take our commitment to this community very seriously," said company spokesperson Beth Fagan. "Throughout the process, we have proactively addressed the situation in an open, safe and effective manner. More importantly, we have remediated every single affected home where we have been allowed to test and install a ventilation system.

"Of the many entities that operated at this site over 41 years, Brown is the only one that has taken responsibility for addressing the problem. We have been praised by the state and many neighborhood residents for our handling of this issue. We are disappointed that we now find ourselves in court."

The Company, which to date has been funding the entire remediation, has filed lawsuits seeking contribution from other businesses that operated at and near the site, and the Colorado Department of Transportation, which operates a large facility adjacent to the site. Brown believes these parties have contributed to the environmental issues affecting portions of the adjacent neighborhoods.

The Company also said that allegations of past on-site disposal were not substantiated by exhaustive groundwater and soil vapor testing of the site. In fact, levels of chlorinated solvents found in the area of alleged "dumping" were substantially lower than in adjacent areas on the site.

Since remediation began, the EPA has raised its proposed guideline level for 1,1-DCE (the chlorinated solvent involved) to 200 micrograms per cubic meter of air – more than 400 times higher than the 0.49 micrograms per cubic meter of air mandated as the "action level" in Colorado – and far above the highest level found in any of the homes tested.

The Company is not able to assess the ultimate outcome of these matters, but it does not believe the final resolution of this matter will have a material adverse effect on the Company's consolidated financial position, based upon the Company's current assessment of its legal position and anticipated recoveries from, and/or allocations of damages (if any) to, third parties. It is possible, however, future results of operations for any particular quarter or annual period could be materially affected by changes in facts or assumptions related to this matter.

For a complete history of the remediation, information about substances involved, types of ventilation systems employed, etc., see the public website www.Redfieldsite.org, developed by the Company in cooperation with the Colorado Department of Public Health and Environment.

Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995: This statement contains certain forward-looking statements that are subject to various risks and uncertainties that could cause actual results to differ materially. The company's reports to the Securities and Exchange Commission contain detailed information relating to this matter and other such factors.

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