For the third quarter of 2008, adjusted EBITDA(3) was $85.1 million, up$1.3 million from the same period last year. Adjusted EBITDA year-to-datein 2008 was $289.6 million. On a trailing four quarters basis, adjustedEBITDA was $314.5 million.

Collective Brands third quarter 2008 net sales were $862.7 million, up$32.0 million, or 3.9%, versus the third quarter of 2007. The increase wasprimarily due to owning Stride Rite this year for 13 more days and a thirdquarter 2008 pro-forma sales increase for Stride Rite of 11.1%(3). Thiswas offset in part by a third quarter 2008 comparable store sales(4)decrease of 3.2%, as the impact of lower store traffic and unit salesoffset the impact of higher average unit retail prices. Net sales forPayless and Stride Rite were $665.1 million and $197.6 million,respectively, for the third quarter of 2008.

"Our operating results demonstrated the strength and resiliency of ourhybrid business model in a difficult operating environment. By stayingtrue to our strategy, we delighted customers with new styles andrecord-setting customer service scores at Payless that resulted inincreased retail market share," said Matthew E. Rubel, Chairman, ChiefExecutive Officer and President of Collective Brands, Inc. "We had strongperformances in Payless Latin America, Stride Rite International, Saucony,and Sperry Top-Sider. In addition, we effectively managed inventory,controlled costs and generated increased cash flow."

The gross margin rate for the third quarter of 2008 was 34.6% compared tothe third quarter 2007 gross margin rate of 32.2%. Excluding litigationitems in 2008 and purchase accounting inventory step-up in 2007, the thirdquarter gross margin rate decreased to 34.1% in 2008 from 35.2% in 2007.The gross margin rate was favorably driven by a higher Payless merchandisemargin as the impact of higher average unit retail prices, direct sourcing,and other gross margin initiatives more than offset the impact of higherproduct costs from China. The gross margin rate was unfavorably driven bylower gross margins at Stride Rite as a result of higher product costs andmore promotional activity, as well as negative leverage on Paylessoccupancy costs.

Selling, general and administrative (SG&A) expenses were lower at 28.4% ofsales in the third quarter of 2008 compared to 28.8% in the third quarterof 2007, an improvement of 40 basis points. The lower SG&A ratio wasdriven primarily by prudent expense management. SG&A expenses were $245.1million in the third quarter of 2008, up $5.5 million versus the thirdquarter of 2007. Payless SG&A expenses, in dollars, declined. Stride RiteSG&A expenses, in dollars, were up primarily due to 13 more days in thethird quarter of 2008.

Net interest expense in the third quarter of 2008 was $17.2 million, anincrease of $2.0 million over the same period last year. The change wasdue primarily to drawing $215.0 million on the Company's revolving loanfacility during the second quarter of 2008. Subsequent to the end of thethird quarter, the Company paid back the entire $215.0 million outstandingon the revolving loan facility.

Due to a reduction in the 2008 annual effective tax rate, the third quarter2008 income tax benefit was $12.9 million driven by the relative earningsmix by country. Tax efficient business initiatives, including integrationopportunities, are expected to have a long-term favorable impact to cashflow.

Collective Brands net debt at the end of the third quarter of 2008 was$608.4, down $16.4 million versus the prior year period. The Company endedthe third quarter of 2008 with $523.6 million in cash and cash equivalentscompared to $301.3 million at the end of the third quarter of 2007. Totaldebt at the end of the third quarter of 2008 was $1.1 billion, up $205.9million over the third quarter of 2007. The increase in cash and cashequivalents as well as debt was due primarily to the use of the revolvingloan facility.

Collective Brands inventory was $467.6 million at the end of the thirdquarter of 2008, down $8.5 million compared to the same period last year.The decline was due to having purchase accounting inventory step-up lastyear and not this year. Payless inventory per store was up 4% at the endof the third quarter this year versus the same period last year. Theincrease was driven by the Company's strategy to flow fresh product, aswell as timing of product flow and higher costs. Importantly, thepercentage of Payless's aged inventory units was 13% lower than the prioryear period reflecting a cleaner inventory position.

Year-to-date capital expenditures through the third quarter of 2008 totaled$107.5 million compared to $128.0 million in the prior year period. Thereduction was due to the completion of projects including theimplementation of advanced technology point-of-sale registers and supplychain as well as lower spending on domestic stores. During the thirdquarter of 2008, Collective Brands added 17 new stores (14 Payless and 3Stride Rite), closed 25 stores (24 Payless and 1 Stride Rite), andrelocated 8 Payless stores.

Retail Store Counts 3rd Quarter 2008 3rd Quarter 2007 2nd Quarter 2008------------------- ---------------- ---------------- ----------------Payless 4,537 4,554 4,547Stride Rite 353 337 351Total Stores 4,890 4,891 4,898

Outlook for Collective Brands

While the Company continues to believe that its long-term strategicopportunities are unchanged, Collective Brands does not believe it isprudent to maintain or update its previously published long-term operatingprofit outlook due to the uncertain economic conditions.

-- Excluding the impact of purchase accounting, the Stride Rite acquisition is expected to be accretive to earnings in 2008 as Stride Rite's operating profit contribution including synergies is expected to exceed the incremental interest expense. Due to the impact of purchase accounting, the Stride Rite acquisition is not expected to be earnings per share accretive in 2008 on a GAAP basis.-- Capital expenditures in 2008 are expected to total approximately $130 million.-- The 2008 effective tax rate is expected to be approximately 19% excluding litigation items and discrete events associated with the resolution of outstanding tax audits.-- Depreciation and amortization in 2008 is expected to total approximately $145 million, due to greater investments in supply chain and stores in recent years as well as the 2007 acquisition of Stride Rite.

About Collective Brands and Forward-Looking Statements

Collective Brands, Inc. is a leader in bringing compelling lifestyle,fashion and performance brands for footwear and related accessories toconsumers worldwide. Collective Brands, Inc. is the holding company ofPayless ShoeSource, Stride Rite, and Collective Licensing International.Payless ShoeSource is the largest specialty family footwear retailer in theWestern Hemisphere. It is dedicated to democratizing fashion and design infootwear and accessories and inspiring fun, fashion possibilities for thefamily at a great value. Stride Rite markets the leading brand ofhigh-quality children's shoes in the United States. Stride Rite alsomarkets products for children and adults under well-known brand names,including Sperry Top-Sider, Saucony, Keds, and Robeez. CollectiveLicensing International is a leading youth lifestyle marketing and globallicensing business. Information about, and links for shopping at, each ofCollective Brands' units can be found at www.collectivebrands.com.

This release contains forward-looking statements relating to such mattersas anticipated financial performance, business prospects, and similarmatters. Statements including the words "expected," "may," or variations ofsuch words and similar expressions are forward-looking statements. TheCompany notes that a variety of factors could cause its actual results andexperience to differ materially from the anticipated results orexpectations expressed in the forward-looking statements. The risks anduncertainties that may affect the operations, performance, development andresults of Collective Brands' business include, but are not limited to, thefollowing: outcomes of litigation; the inability to renew material leases,licenses, or contracts upon their expiration; changes in consumer spendingpatterns; changes in consumer preferences and overall economic conditions;the impact of competition and pricing; changes in weather patterns; thefinancial condition of suppliers; changes in existing or potential duties,tariffs or quotas and the application thereof; changes in relationshipsbetween the United States and foreign countries as well as between foreigncountries; changes in relationships between Canada and foreign countries;economic and political instability in foreign countries, or restrictiveactions by the governments of foreign countries in which suppliers andmanufacturers from whom the Company sources are located or in which theCompany operates stores or otherwise does business; changes in trade,intellectual property, customs and/or tax laws; fluctuations in currencyexchange rates; litigation including intellectual property and employmentlitigation; availability of suitable store locations on acceptable terms;the ability to terminate leases on acceptable terms; the ability to hire,train and retain associates; performance of other parties in strategicalliances; general economic, business and social conditions in thecountries from which Collective Brands sources products, supplies or has orintends to open stores; performance of partners in joint ventures; theability to comply with local laws in foreign countries; threats or acts ofterrorism or war; strikes, work stoppages and/or slowdowns by unions thatplay a significant role in the manufacture, distribution or sale ofproduct; congestion at major ocean ports; changes in commodity prices suchas oil; and changes in the value of the dollar relative to the Chinese Yuanand other currencies. See also "Risk Factors" in the Company's Form 10-Kfor the year ended February 2, 2008 and Form 10-Qs.

All subsequent written and oral forward-looking statements attributable tothe Company or persons acting on its behalf are expressly qualified intheir entirety by these cautionary statements. Collective Brands does notundertake any obligation to release any revisions to such forward-lookingstatements to reflect events or circumstances after the date hereof or toreflect the occurrence of unanticipated events. The unaudited condensedconsolidated statements of earnings, balance sheets and statements of cashflows have been prepared in accordance with the company's accountingpolicies as described in the Company's 2007 Form 10-K, on file with theSecurities and Exchange Commission, are subject to reclassification andadjustments and should be read in conjunction with the 2007 Annual Reportto Shareowners. In the opinion of management, this information is fairlypresented and all adjustments (consisting only of normal recurringadjustments) necessary for a fair statement of the results for the interimperiods have been included.

(1) The non-GAAP results for third quarter of 2008 exclude net earnings of$20.9 million, or $0.33 per share. This relates to $4.3 million pre-tax ofinsurance recoveries, net of litigation-related expenses, associated withthe K-Swiss and the adidas matters and $16.6 million related to the changein the annual effective tax rate due to litigation charges ("litigationitems").

(2) The non-GAAP results for third quarter 2007 exclude a net loss of $5.8million, or $0.09 per share. This relates to $25.0 million pre-tax for theflow through of inventory recorded at fair value and $19.2 million relatedto the change in the annual effective tax rate due to purchase accountingcharges ("purchase accounting inventory step-up").

(3) This release contains certain non-GAAP financial measures. Inparticular, Collective Brands provides historic diluted earnings per share,net earnings, gross margin, and adjusted EBITDA excluding items associatedwith the K-Swiss and adidas litigation as well as purchase accountinginventory step-up which are non-GAAP financial measures. Regarding thepro-forma sales increase for Stride Rite, the 2008 sales are compared tosales for Collective Brands entire third quarter of 2007 including the 13days during which Collective Brands did not own Stride Rite. All thesemeasures are included as a complement to results provided in accordancewith GAAP because management believes these non-GAAP financial measureshelp explain underlying performance trends in Collective Brands businessand provide useful information to both management and investors byexcluding certain items that are not indicative of Collective Brands coreoperating results. These measures should be considered in addition toresults prepared in accordance with GAAP, but should not be considered asubstitute for or superior to GAAP results. Please see the reconciliationsof the non-GAAP financial measures after the statement of cash flows.

(4) Comparable store sales include Payless stores from all regions. StrideRite stores are excluded.

COLLECTIVE BRANDS, INC. CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (UNAUDITED)(Dollars and shares in millions, except per share data) 13 Weeks Ended 39 Weeks Ended -------------------- -------------------- November November November November 1, 3, 1, 3, 2008 2007 2008 2007 --------- --------- --------- ---------Net sales $ 862.7 $ 830.7 $ 2,706.8 $ 2,258.6Cost of sales 564.0 563.5 1,820.2 1,481.9 --------- --------- --------- ---------Gross margin 298.7 267.2 886.6 776.7Selling, general and administrative expenses 245.1 239.6 768.1 650.5Restructuring charges 0.1 (0.1) 0.2 0.2 --------- --------- --------- ---------Operating profit from continuing operations 53.5 27.7 118.3 126.0Interest expense 19.9 18.1 57.7 27.7Interest income (2.7) (2.9) (6.5) (11.6) --------- --------- --------- ---------Earnings from continuing operations before income taxes and minority interest 36.3 12.5 67.1 109.9(Benefit) Provision for income taxes (12.9) (15.1) (13.4) 16.4 --------- --------- --------- ---------Earnings from continuing operations before minority interest 49.2 27.6 80.5 93.5Minority interest, net of income taxes (1.8) (2.0) (4.8) (4.2) --------- --------- --------- ---------Net earnings from continuing operations 47.4 25.6 75.7 89.3(Loss) Earnings from discontinued operations, net of income taxes and minority interest 0.1 (0.1) (0.4) - --------- --------- --------- ---------Net earnings $ 47.5 $ 25.5 $ 75.3 $ 89.3 ========= ========= ========= =========Basic earnings per share: Earnings from continuing operations $ 0.75 $ 0.40 $ 1.20 $ 1.38 Earnings (loss) from discontinued operations - - - - --------- --------- --------- ---------Basic earnings per share $ 0.75 $ 0.40 $ 1.20 $ 1.38 ========= ========= ========= =========Diluted earnings per share: Earnings from continuing operations $ 0.75 $ 0.39 $ 1.19 $ 1.36 Earnings (loss) from discontinued operations - - - - --------- --------- --------- ---------Diluted earnings per share $ 0.75 $ 0.39 $ 1.19 $ 1.36 ========= ========= ========= =========Basic weighted average shares outstanding 63.0 64.6 62.9 64.6Diluted weighted average shares outstanding 63.2 65.3 63.1 65.7 COLLECTIVE BRANDS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) November November February 1, 3, 2,(dollars in millions) 2008 2007 2008 --------- --------- ---------ASSETS:Current assets: Cash and cash equivalents $ 523.6 $ 301.3 $ 232.5 Accounts receivable, net 89.1 93.6 86.1 Inventories 467.6 476.1 470.1 Prepaid expenses 74.8 94.9 93.4 Current deferred income taxes 45.6 15.1 23.8 Other current assets 37.1 14.9 31.5 Current assets of discontinued operations 0.9 0.8 0.8 --------- --------- ---------Total current assets 1,238.7 996.7 938.2Property and Equipment: Land 8.6 10.8 9.3 Property, buildings and equipment 1,486.8 1,422.6 1,440.1 Accumulated depreciation and amortization (952.1) (892.4) (898.4) --------- --------- --------- Property and equipment, net 543.3 541.0 551.0Intangible assets, net 539.4 564.8 559.5Goodwill 324.0 314.6 321.0Deferred income taxes 0.2 1.4 1.5Other assets 40.1 43.3 44.0 --------- --------- ---------TOTAL ASSETS $ 2,685.7 $ 2,461.8 $ 2,415.2 ========= ========= =========LIABILITIES AND EQUITY:Current liabilities: Current maturities of long-term debt $ 222.3 $ 7.5 $ 7.4 Accounts payable 186.5 159.3 200.9 Accrued expenses 208.2 214.4 203.5 Current liabilities of discontinued operations 1.8 1.5 1.3 --------- --------- ---------Total current liabilities 618.8 382.7 413.1Long-term debt 909.7 918.6 914.9Other liabilities 243.8 221.3 254.2Deferred income taxes 116.0 132.0 112.9Minority interest 21.3 13.5 17.2Total shareowners' equity 776.1 793.7 702.9 --------- --------- ---------TOTAL LIABILITIES AND SHAREOWNERS' EQUITY $ 2,685.7 $ 2,461.8 $ 2,415.2 ========= ========= ========= COLLECTIVE BRANDS, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) Year YTD Ended YTD Ended ended --------- --------- --------- November November February 1, 3, 2,(dollars in millions) 2008 2007 2008 --------- --------- ---------OPERATING ACTIVITIES:Net earnings $ 75.3 $ 89.3 $ 42.7 Loss from discontinued operations, net of income taxes and minority interest 0.4 - - --------- --------- --------- Adjustments for non-cash items included in net earnings: Loss on impairment and disposal of assets 5.6 6.1 7.2 Depreciation and amortization 105.9 81.4 117.3 Provision for losses on accounts receivable 2.2 0.7 1.5 Share-based compensation expense 12.4 10.7 14.6 Deferred income taxes (21.3) (4.7) (25.1) Minority interest, net of income taxes 4.8 4.2 7.7 Income tax benefit from share-based compensation - 2.6 2.6 Excess tax benefits from share-based compensation - (2.4) (2.4) Interest income on held-to-maturity investments - (0.6) (0.6)Changes in working capital: Accounts Receivable (4.8) 22.5 12.7 Inventories (2.6) 76.0 80.6 Prepaid expenses and other current assets 9.0 (33.1) (23.5) Accounts payable (8.6) (76.7) (42.0) Accrued expenses 17.5 (16.5) (30.7)Changes in other assets and liabilities, net 6.7 22.0 31.5Contributions to pension plans (4.7) - (0.8)Net cash used in discontinued operations - (0.3) (0.5) --------- --------- ---------Cash flow provided by operating activities 197.8 181.2 192.8 --------- --------- ---------INVESTING ACTIVITIES:Capital expenditures (107.5) (128.0) (167.4)Restricted Cash - 2.0 2.0Proceeds from the sale of property and equipment 2.1 2.9 2.9Intangible asset additions - - (0.6)Purchases of investments - (6.1) (6.1)Sales and maturities of investments - 96.7 96.7Acquisition of businesses, net of cash acquired - (876.9) (877.7) --------- --------- ---------Cash flow used in investing activities (105.4) (909.4) (950.2) --------- --------- ---------FINANCING ACTIVITIES:Repayment of notes payable - (2.0) (2.0)Issuance of debt - 725.0 725.0Proceeds from revolving loan facility 215.0 - -Repayment of debt (5.5) (51.5) (55.3)Payment of deferred financing costs (0.1) (8.1) (12.7)Issuances of common stock 0.8 8.3 8.7Purchases of common stock (1.7) (21.2) (48.4)Excess tax benefits from share-based compensation - 2.4 2.4Contributions by minority owners 3.4 - -Distribution to minority owners (3.6) (2.4) (2.4) --------- --------- ---------Cash flow provided by financing activities 208.3 650.5 615.3 --------- --------- ---------Effect of exchange rate changes on cash (9.6) 7.6 3.2Increase (Decrease) in cash and cash equivalents 291.1 (70.1) (138.9)Cash and cash equivalents, beginning of year 232.5 371.4 371.4 --------- --------- ---------Cash and cash equivalents, end of period $ 523.6 $ 301.3 $ 232.5 ========= ========= ========= COLLECTIVE BRANDS, INC. RECONCILIATION OF GAAP TO NON-GAAP CONDENSED CONSOLIDATED STATEMENT OF EARNINGS FOR THE THIRTEEN WEEKS ENDED NOVEMBER 1, 2008 (UNAUDITED)(Dollars and shares in millions, except per share data) As Adjustment Reported For (GAAP Litigation Non-GAAP Basis) Charges Basis --------- ----------- ---------Net sales $ 862.7 $ - $ 862.7Cost of sales 564.0 4.3 (a) 568.3 --------- ----------- ---------Gross margin 298.7 (4.3) 294.4Selling, general and administrative expenses 245.1 - 245.1Restructuring charges 0.1 - 0.1 --------- ----------- ---------Operating profit from continuing operations 53.5 (4.3) 49.2Interest expense 19.9 - 19.9Interest income (2.7) - (2.7) --------- ----------- ---------Earnings from continuing operations before income taxes and minority interest 36.3 (4.3) 32.0(Benefit) provision for income taxes (12.9) 16.6 (b) 3.7 --------- ----------- ---------Earnings from continuing operations before minority interest 49.2 (20.9) 28.3Minority interest, net of income taxes (1.8) - (1.8) --------- ----------- ---------Net earnings from continuing operations 47.4 (20.9) 26.5Loss from discontinued operations, net of income taxes and minority interest 0.1 - 0.1 --------- ----------- ---------Net earnings $ 47.5 $ (20.9) $ 26.6 ========= =========== =========Basic earnings per share: Earnings from continuing operations $ 0.75 $ (0.33) $ 0.42 Loss from discontinued operations - - - --------- ----------- ---------Basic earnings per share: $ 0.75 $ (0.33) $ 0.42 ========= =========== =========Diluted earnings per share Earnings from continuing operations $ 0.75 $ (0.33) $ 0.42 Loss from discontinued operations - - - --------- ----------- ---------Diluted earnings per share $ 0.75 $ (0.33) $ 0.42 ========= =========== =========Basic weighted average shares outstanding 63.0 63.0 63.0Diluted weighted average shares outstanding 63.2 63.2 63.2Notes to adjustments: (a) Represents the litigation charges. (b) Impact on GAAP income tax provision caused by inclusion of 2008 litigation and inventory step-up expenses in the calculation of the effective income tax rate, as well as the inclusion of these expenses in the calculation of the year-to-date income tax provision. COLLECTIVE BRANDS, INC. RECONCILIATION OF GAAP TO NON-GAAP CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS FOR THE THIRTEEN WEEKS ENDED NOVEMBER 3, 2007 (UNAUDITED)(Dollars and shares in millions, except per share data) As Reported (GAAP Non-GAAP Basis) Adjustments Basis --------- ----------- ---------Net sales $ 830.7 $ - $ 830.7Cost of sales 563.5 (25.0)(a) 538.5 --------- ----------- ---------Gross margin 267.2 25.0 292.2Selling, general and administrative expenses 239.6 - 239.6Restructuring charges (0.1) - (0.1) --------- ----------- ---------Operating profit from continuing operations 27.7 25.0 52.7Interest expense 18.1 - 18.1Interest Income (2.9) - (2.9) --------- ----------- ---------Earnings from continuing operations before income taxes and minority interest 12.5 25.0 37.5(Benefit) Provision for income taxes (15.1) 19.2 (b) 4.1 --------- ----------- ---------Earnings from continuing operations before minority interest 27.6 5.8 33.4Minority interest, net of income taxes (2.0) - (2.0) --------- ----------- ---------Net earnings from continuing operations 25.6 5.8 31.4(Loss) Earnings from discontinued operations, net of income taxes and minority interest (0.1) - (0.1) --------- ----------- ---------Net earnings $ 25.5 $ 5.8 $ 31.3 ========= =========== =========Basic earnings per share: Earnings from continuing operations $ 0.40 $ 0.09 $ 0.49 Earnings (loss) from discontinued operations - - - --------- ----------- ---------Basic earnings per share $ 0.40 $ 0.09 $ 0.49 ========= =========== =========Diluted earnings per share: Earnings from continuing operations $ 0.39 $ 0.09 $ 0.48 Earnings (loss) from discontinued operations - - - --------- ----------- ---------Diluted earnings per share $ 0.39 $ 0.09 $ 0.48 ========= =========== =========Basic weighted average shares outstanding 64.6 64.6 64.6Diluted weighted average shares outstanding 65.3 65.3 65.3Notes to adjustments:(a) Represents the flow through of inventory recorded at fair value.(b) Impact on GAAP income tax provision caused by inclusion of forecasted 2007 purchase accounting expenses in the effective income tax rate, as well as the inclusion of third quarter purchase accounting in the calculation of the year-to-date income tax provision. COLLECTIVE BRANDS, INC. RECONCILIATION OF GAAP CASH FLOW PROVIDED BY OPERATING ACTIVITIES TO NON-GAAP ADJUSTED EBITDA (UNAUDITED)(Dollars in millions) LAST 12 QUARTER 39 WEEKS MONTHS ENDED ENDED ENDED NOVEMBER 1, NOVEMBER 1, NOVEMBER 1, 2008 2008 2008 ----------- ----------- -----------Cash flow provided by operating activities $ 110.8 $ 197.8 $ 209.4Changes in working capital (12.5) (11.4) (36.3)Adjustments for non-cash items (excluding minority interest, depreciation and amortization) included in net earnings (9.7) 1.9 16.5Changes in other assets and liabilities, net, and contributions to pension plan (3.5) (1.9) (10.6)Net cash used in discontinued operations - - 0.2Benefit for income taxes (12.9) (13.4) (21.2)Net interest expense 17.2 51.2 67.4 ----------- ----------- -----------EBITDA 89.4 224.2 225.4Impact of Litigation (4.3) 61.9 61.9Flow through of inventory recorded at fair value - 3.5 27.2 ----------- ----------- -----------Adjusted EBITDA $ 85.1 $ 289.6 $ 314.5 =========== =========== =========== COLLECTIVE BRANDS, INC. RECONCILIATION OF STRIDE RITE GAAP NET SALES TO PROFORMA STRIDE RITE NET SALES (NON-GAAP) FOR THE THIRTEEN WEEKS ENDED NOVEMBER 3, 2007 (UNAUDITED)(Dollars in millions)Stride Rite 2007 net sales (GAAP Basis) $ 144.8Adjustment 33.1 (a) -------Stride Rite 2007 pro-forma net sales (Non-GAAP) 177.9Stride Rite 2008 net sales (GAAP Basis) 197.6 -------Net pro-forma increase 19.7 =======Percent Increase 11.1%Notes to adjustments: (a) Adjustment for the Company's estimate of 13 additional days of net sales for the Stride Rite operations. These net sales were not present in previously reported financials as Stride Rite was not acquired until August 17, 2007.

Contact:James Grant(785) 559-5321