CONTINUING THE PROGRESS.

We’ve made solid progress over the past year. Yet, we have much more work to do in 2001 and beyond in order to meet our commitment to consistently deliver double-digit growth in earnings.

First and foremost, our strategy is product leadership. At Brown Shoe we’re building a culture dedicated to having the right product, at the right price, for the right tier of distribution to drive both our retail and wholesale businesses. This dedication to creating compelling footwear will continue to increase market share in all our businesses. To this end, I extend a special thanks to our many talented line builders who are designing great-looking shoes, to our buying teams who are identifying and selecting the best styles, and to our international sourcing employees who delivered a record on-time shipment performance while setting a new benchmark for quality.

From the day I took over as Chairman in January 1999, I have said that we have yet to see the performance that Brown Shoe is truly capable of achieving. With our strategy that focuses resources on our growth areas, targets improvements in operating margin, and seeks greater synergies between our retail and wholesale businesses, we can succeed in delivering greater value to our shareholders and customers alike.

Thank you for your continued support.

Ronald A. Fromm, Chairman, President and Chief Executive Officer