Payless ShoeSource(R) and Nickelodeon Sign Multi-Year Licensing Agreement for Blue's Clues Footwear

Payless ShoeSource(R) and Nickelodeon Sign Multi-Year Licensing Agreement for Blue's Clues Footwear

Arrangement Offers Creative Collaboration on Design and Certain Blue's Clues Styles Available Only at Payless

TOPEKA, Kan. and NEW YORK, April 29 /PRNewswire-FirstCall/ -- Payless ShoeSource, the leading specialty family footwear retailer in the United States, and Nickelodeon, the number-one entertainment brand for kids, today announced that they have signed a multi-year licensing agreement enabling a more direct creative collaboration between Payless and Nickelodeon and resulting in a new line of Blues Clues footwear with certain styles featuring the Blue's Clues characters offered only at Payless.

The new Blue's Clues line, including styles for both boys and girls, will be available at Payless stores this November -- just in time for the holiday '08 season. Blue's Clues airs regularly on Nickelodeon and has continually been rated in the top five preschool shows since it first debuted in 1996.

"Payless is on a mission to democratize fashion and design in footwear and that means delivering shoe lines featuring the characters kids love such as Blue's Clues," said Matt Rubel, chief executive officer and president of Payless ShoeSource. "Blue's Clues has enjoyed significant longevity -- its content and interactivity have captured audiences again and again and the show is a huge favorite among moms. This agreement allows us to work directly with the talented and innovative team at Nickelodeon, enabling us to together bring the fun of Blue's Clues and friends to shoppers with fresh styling, high-quality and always at a great price."

The Payless children's footwear design team based in New York will design the select styles. Payless will source, market and sell the styles through Payless' more than 4,500 store chain and on payless.com. Three to five styles are expected in Payless stores at the time of the November launch with regular seasonal refreshes also expected.

"We are thrilled to partner with Payless to offer this brand-new line of Blue's Clues footwear," said Leigh Anne Brodsky, president, Nickelodeon and Viacom Consumer Products. "Moms and kids love Blue's Clues and this new working relationship is very important to our goal of delivering innovative styles and great prices."

Blue's Clues is a think-along, play-along half-hour animated series starring live-action host Joe and an energetic bright blue girl puppy named Blue. In each episode, Joe invites viewers to help him and Blue solve the day's puzzle. Blue's Clues launched in September 1996 to critical praise from teachers, parents and young viewers. Blue's Clues continues to draw acclaim for its unique interactivity that has changed the way kids watch television and has remained one of the most watched preschool shows on U.S. television. Now in its 12th year, the series continues to raise the bar in preschool television by exploring advanced subject matter such as sign language, geography, physics, emotions and anatomy.

About Payless

Payless ShoeSource, Inc., a unit of Collective Brands, Inc., is the largest specialty family footwear retailer in the Western Hemisphere and is dedicated to democratizing fashion and design in footwear and accessories and inspiring fun, fashion possibilities for the family at a great value. As of the end of fiscal year 2007, the company operated more than 4,500 stores. In addition, customers can buy shoes over the Internet through Payless.com(R) at http://www.payless.com/.

Collective Brands, Inc. (NYSE:PSS) is a leader in bringing compelling lifestyle, fashion and performance brands for footwear and related accessories to consumers worldwide. The company operates three strategic units covering a powerful brand portfolio, as well as multiple price points and selling channels including retail, wholesale, ecommerce and licensing. Collective Brands, Inc. includes Payless ShoeSource, focused on democratizing fashion and design in footwear and accessories through its more than 4,500-store retail chain, with its brands American Eagle(TM), Airwalk(R), Dexter(R), Champion(R) and designer collections Abaete for Payless, Lela Rose for Payless and alice + olivia for Payless, among others; Stride Rite, focused on lifestyle and athletic branded footwear and high-quality children's footwear sold primarily through wholesaling, with its brands including Stride Rite(R), Keds(R), Sperry Top-Sider(R), Robeez(R), and Saucony(R), among others; and Collective Licensing International, the brand development, management and global licensing unit, with such youth lifestyle brands as Airwalk(R), Vision Street Wear(R), Lamar(R), Sims(R), LTD(R), genetic(R), Dukes(TM), Rage(R), Ultra-Wheels(R), and Skate Attack(R). Information about, and links for shopping on, each of the Collective Brand's units can be found at http://www.collectivebrands.com/.

About Nickelodeon & Viacom Consumer Products

Nickelodeon & Viacom Consumer Products manages the world's third largest licensing business, representing leading properties such as SpongeBob SquarePants and Dora the Explorer, and managing merchandising for Nick Jr., Nickelodeon, Comedy Central, MTVN International, and Spike TV.

Nickelodeon, in its 28th year, is the number-one entertainment brand for kids. It has built a diverse, global business by putting kids first in everything it does. The company includes television programming and production in the United States and around the world, plus consumer products, online, recreation, books, magazines and feature films. Nickelodeon's U.S. television network is seen in almost 96 million households and has been the number-one-rated basic cable network for 13 consecutive years. Nickelodeon and all related titles, characters and logos are trademarks of Viacom Inc. (NYSE:VIA)(NYSE:VIA.B).

First Call Analyst:
FCMN Contact:

Source: Payless ShoeSource

CONTACT: Media, Mardi Larson, +1-612-928-0202, or Financial, James
Grant, +1-785-559-5321, both of Payless ShoeSource; or Media, Nakiah Cherry
Chinchilla of Nickelodeon, +1-212-846-6492

Web site:

http://www.payless.com/

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