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Brown Shoe Selects SAP to Support Growth Strategy and Enhance Consumer Connection

07/29/2008

Brown Shoe Company, Inc. (NYSE: BWS)(http://www.brownshoe.com), announced today that it has chosen SAP (NYSE: SAP) to provide its core enterprise resource management platform (ERP) for the organization. The implementation of the SAP solution is expected to support Brown Shoe's growth strategy while streamlining and transforming day-to-day operations for the company's integrated business model.

This move is another key step in Brown Shoe's earnings enhancement plan as the company continuously finds ways to foster collaboration among its divisions and partners, increase its speed-to-market, and strengthen its connection with consumers.

"The anticipated multi-year implementation of the SAP ERP application is an integral step in Brown Shoe's efforts to create an interconnected business model and leverage our inter-company synergies to better meet the needs of our customers," said Ron Fromm, Chairman and CEO of Brown Shoe. "As a proven, scalable operating platform, SAP is expected to be a key enabler toward reaching our strategic goals of becoming the leading fashion footwear marketer."

Implementing SAP's system is expected to support Brown Shoe's goals of growth and profitability by aligning its information technology (IT) operations on a single, scalable and flexible platform that supports its multiple business segments, partners and worldwide operations. By selecting an integrated information system, Brown Shoe expects to enhance its profitability and deliver increased shareholder value through improved management and execution of its business operations, financial systems, supply chain efficiency and planning, and employee productivity. In addition, the integrated solution is intended to further support Brown Shoe's overall objective to strengthen its interconnected wholesale, sourcing, retail and e-commerce business platforms.

Brown Shoe will replace existing homegrown and third-party applications with the SAP Business Suite. The company will utilize SAP's industry-specific solution, SAP(R) Apparel and Footwear Solution for Consumer Products package, to help manage its supply chain. The company also selected business intelligence solutions from Business Objects, an SAP company, to help close the loop between business strategy and execution. This application provides tightly integrated solutions that are expected to collectively address the organization's business needs and are intended to enable Brown Shoe to meet its long-term growth and strategic expectations while remaining customer focused.

"We are excited to call Brown Shoe an SAP customer," said Greg Tomb, President & CEO, SAP North America. "We are proud Brown Shoe selected SAP to be a strategic partner to help take their business operations to the next level. By leveraging business intelligence for real-time decision making with an integrated business process platform, we will help Brown Shoe succeed by closely aligning their business strategy and execution."

About Brown Shoe

Brown Shoe is a $2.4 billion footwear company with global operations. Brown Shoe's Retail division operates Famous Footwear, the 1,100-store chain that sells brand name shoes for the family, approximately 300 specialty retail stores in the U.S., Canada, and China under the Naturalizer, Brown Shoe Closet, 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, Carlos by Carlos Santana, and Hot Kiss as well as Barbie, Disney and Nickelodeon character footwear for children. Brown Shoe press releases are available on the Company's website at http://www.brownshoe.com.

Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995:

This press release contains certain forward-looking statements and expectations regarding Brown Shoe Company, Inc.'s future. Such statements are subject to various risks and uncertainties that could cause actual results to differ materially. These include (i) the preliminary nature of estimates of the costs and benefits of strategic business transformation, which are subject to change as Brown Shoe makes decisions and refines these estimates over time; (ii) potential disruption to Brown Shoe's business and operations as it implements the SAP ERP application as well as a result of the Company's decision to relocate positions from its Madison, WI office to its St. Louis, MO headquarters, and the Company's ability to attract and retain talent; (iii) the timing and uncertainty of activities related to software implementation and business transformation; and (iv) the new software system's ability to enable Brown Shoe to successfully execute its growth strategy. Brown Shoe'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 both Brown Shoe's Annual Report for the year ended February 2, 2008 and Brown Shoe's Quarterly Report for the quarterly period ended May 3, 2008, 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.

Web site: http://www.brownshoe.com

Contact:

Dorothy Bell of Brown Shoe, +1-314-854-4094
dbell@brownshoe.com
or
Paul Wagman of Fleishman Hillard, +1-314-982-1726
paul.wagman@fleishman.com
for Brown Shoe
or
Evan Welsh, SAP Press Office, +1-610-203-9742, CET
evan.welsh@sap.com
or
+49 (6227) 7-46315, CET
+1-610-661-3200, EDT
press@sap.com

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