General Financial Releases

Brown Shoe Completes New, Expanded Credit Agreement

ST. LOUIS, December 21, 2001 -- Brown Shoe Company, Inc. (NYSE: BWS) today announced the completion of a new, five-year $350 million secured revolving bank credit facility arranged by Bank of America, N.A. This line of credit replaces the company's existing $165 million facility.

As part of the refinancing, the company has called its $100 million 9.5% notes due in 2006. The premium associated with the debt call will be accounted for as part of a planned fourth-quarter charge that the company announced on November 26.

"We are exceptionally pleased with this new agreement," said Andrew Rosen, Brown Shoe's Chief Financial Officer. "I believe it serves as a powerful vote of confidence as we undertake the competitive transformation of our operating structure. Clearly, this credit facility provides us with increased financial flexibility with regard to our working capital needs, and it will enable us to pursue plans to grow our businesses."


Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995: This press release contains certain forward-looking statements that are subject to various risks and uncertainties that could cause actual results to differ materially. These include general economic conditions, competition, consumer apparel and footwear buying trends, and political and economic conditions in Brazil and China, which are significant footwear sourcing countries. The Company's reports to the Securities and Exchange Commission contain detailed information relating to such factors.

Brown Shoe is a $1.7 billion footwear company with worldwide operations. The company operates the Famous Footwear and Naturalizer chains of footwear retail stores and markets leading brands including Naturalizer, LifeStride and, Buster Brown, and licensed brands including Dr. Scholl's, Carlos by Carlos Santana and children's licensed character footwear including Barbie, Spider-Man, Bob-the Builder and many others.

Brown Shoe press releases are available on the Company's web site at http://www.brownshoe.com