Brown Shoe Company Will Launch Naturalizer, Via Spiga in China Through Joint Venture With Hongguo International Holdings Limited

Brown Shoe Company, Inc. (NYSE: BWS, http://www.brownshoe.com) today announced a joint venture with Hongguo International Holdings Limited (Hongguo), one of China's leading footwear companies, to begin marketing footwear in China. Over the next five years, the two companies expect to open throughout China more than 400 stores and department store shops carrying the Naturalizer brand, and more than 100 carrying the Via Spiga brand.

Brown Shoe will hold a 51 percent equity stake in the joint venture (B & H Footwear Company Limited), and Hongguo will hold the remaining 49 percent. The joint venture will set up a wholly owned subsidiary in Dongguan, Guangdong Province, where Brown Shoe currently maintains a sourcing operation with nearly 600 employees.

"The debut of Naturalizer and Via Spiga in China represents a significant milestone in Brown Shoe's initiative to reach a global audience with our portfolio of compelling, consumer-driven footwear brands," said Brown Shoe Chairman and CEO Ron Fromm. "This joint venture combines Brown Shoe's strength in brand-building and marketing with Hongguo's established store network and operational expertise in the retail industry in China. Together, we are committed to bringing Chinese consumers stylish shoes from brands that are loved and trusted worldwide."

Brown Shoe and Hongguo will launch the Naturalizer women's fashion footwear brand in China in Fall 2007, opening stores and branded department store shops in several of its largest cities -- Shanghai, Beijing, Guangzhou and Shenzhen. The companies plan to introduce the Via Spiga brand to China in 2008.

"Naturalizer represents a new category of shoes that are in step with the changing preferences of Chinese women," said Mr. Chen Yixi, Chairman of Hongguo. "While there has always been an appreciation for the latest footwear trends, more and more women in China want to feel comfortable while still wearing fashionable shoes."

Naturalizer was launched in 1927 as a brand that provided women with fashionable shoes that were also comfortable. The brand has since evolved into one of the most successful footwear brands in America, currently ranked as the #2 women's fashion footwear brand according to NPD. Naturalizer has a significant international presence, with distribution in 37 countries around the world, generating approximately $500 million in worldwide retail sales in 2006.

Leadership teams from both companies will officially inaugurate the joint venture during a ceremony in Shanghai on Friday, June 22.

Safe Harbor Statement Under the Private Securities Litigation Reform Act

of 1995:

This press release contains certain forward-looking statements and expectations regarding the Company's future performance and the future performance of its brands and other legal entities. Such statements are subject to various risks and uncertainties that could cause actual results to differ materially. These include (i) competition within the global footwear industry; (ii) changing consumer demands and fashion trends and purchasing patterns, which may be influenced by consumers' disposable income, which in turn can be influenced by general economic conditions; (iii) changes in the financial and operating health of the joint venture organization and its ability to fulfill contractual obligations; and (iv) changes in geopolitical, social, and economic conditions in China. The Company's reports to the Securities and Exchange Commission contain detailed information relating to such factors, including, without limitation, the information under the caption "Risk Factors" in Item 1A of the Company's Annual Report for the year ended February 3, 2007 and the information under the caption "Risk Factors" in Item 1A of the Company's Form 10-Q for the quarterly period ended May 5, 2007, which information is incorporated by reference herein. The Company does not undertake any obligation or plan to update these forward-looking statements, even though its situation may change.

Brown Shoe is a $2.5 billion footwear company with global operations. Brown Shoe's Retail division operates Famous Footwear, the 1,000-store chain that sells brand name shoes for the family and approximately 300 specialty retail stores in the U.S. and Canada under the Naturalizer, FX LaSalle, and Franco Sarto names, and Shoes.com, the Company's e-commerce subsidiary. Brown Shoe, through its Wholesale divisions, owns and markets leading footwear brands including Naturalizer, LifeStride, Via Spiga, Nickels Soft, Connie and Buster Brown; it also markets licensed brands including Franco Sarto, Dr. Scholl's, Etienne Aigner, and Carlos by Carlos Santana and Barbie, Disney and Nickelodeon character footwear for children. Brown Shoe press releases are available on the Company's Web site at http://www.brownshoe.com.

Listed on the Mainboard of Singapore Exchange since 5 June 2003, Hongguo is a specialized designer, manufacturer and retailer of high-quality fashion products headquartered in Nanjing, China. Hongguo currently owns two flagship ladies' fashion footwear labels -- C.Banner and E.Blan -- and works with several international footwear brands on distribution and contract manufacturing. The Group also distributes premium fashion labels such as Ermenegildo Zegna, Hugo BOSS and MaxMara in eastern China through a wholly owned subsidiary Jiangsu Unity Corporation. As at 31 December 2006, Hongguo's retail network comprised 726 points-of-sales spreading across China's major cities and provinces while its manufacturing facilities in Nanjing and Dongguan are capable of producing 2.7 million pairs of shoes per annum. In 2006, C.Banner was ranked third in terms of market share for the third year running, according to an annual market survey of the ladies' leather shoes industry conducted by China General Chamber of Commerce. For year 2006, Hongguo has achieved net profits of RMB90.6 million on the back of revenue of RMB594.3 million. For more information, please visit http://www.hongguo.com.