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                                                                    Exhibit 99.1




For Immediate Release                 Contact: Timothy J. Reid (785) 295-6695

PAYLESS SHOESOURCE ANNOUNCES COMPLETION OF
$55 MILLION PRIVATE PLACEMENT

     Topeka, Kan., June 4, 1999 - Payless ShoeSource, Inc. (NYSE:PSS) today
announced that the company completed a $55 million financing through a private
placement of unsecured notes issued by a wholly owned subsidiary in five and ten
year maturities.

     Proceeds from the financing are intended to be used for general corporate
purposes including the funding of a portion of the company's previously
announced stock repurchase program.

         The financing consists of an aggregate of $20 million of senior notes
maturing in June 2004 and $35 million of senior notes maturing in June 2009,
with payments of principal on $15 million of the June 2009 notes beginning in
June 2003.

     The notes have not been and will not be registered under the Securities Act
of 1933 and may not be offered or sold in the United States without registration
or an applicable exemption from registration requirements. This announcement
does not constitute an offer to sell or a solicitation to buy the notes or any
other securities of the company.

     Payless ShoeSource, Inc., is North America's largest family footwear
retailer. The company operates 4,388 Payless ShoeSource stores offering quality
family footwear at affordable prices. Payless also operates 215 Parade of Shoes
stores featuring fashionable women's footwear.


This press release contains forward-looking statements that are subject to risks
and uncertainties. Forward-looking statements include management's present
intentions and expectations of the use of the debt financing. A variety of known
and unknown risks, uncertainties and other factors could cause actual results
and expectations to differ materially from the anticipated results or
expectations. Additional information concerning a number of factors that could
cause actual results to differ materially from the information contained in this
release can be found in the 1998 Annual Report to Shareowners and the Company's
Form 10-K for fiscal 1998, as filed with the Securities and Exchange Commission.