Exhibit 99.1

Shoe Pavilion Announces an 8.2% Increase in Comparable Store Sales for
                          Second Quarter 2005

    PINOLE, Calif.--(BUSINESS WIRE)--July 7, 2005--Shoe Pavilion, Inc.
(Nasdaq:SHOE) today announced comparable store net sales increased
8.2% for the second quarter ended July 2, 2005 from the same period
last year. Net sales for the second quarter ended July 2, 2005
increased 20.2% to $24.9 million from $20.7 million for the same
period last year.
    Comparable store net sales for the six months ended July 2, 2005
increased 9.5% from the same period last year. Net sales for the six
months ended July 2, 2005 increased 19.6% to $48.2 million from $40.3
million for the same period last year.
    During the quarter ended July 2, 2005 the Company opened four
stores and closed two stores in which the leases had expired bringing
the total number of stores the Company operates to 87. The Company
plans to open between four to eight stores the remainder of 2005.
    Shoe Pavilion is an independent off-price footwear retailer on the
West Coast. It offers a broad selection of women's, men's and
children's designer label and name brand footwear, typically at 20% to
60% below department store regular prices for the same shoes. The
Company has 87 stores in California, Washington, Oregon and Arizona.

    Safe Harbor Statement under the Private Securities Litigation
Reform Act of 1995: This press release contains certain
forward-looking statements that are subject to risks and uncertainties
that could cause the Company's actual results to differ materially
from management's current expectations. These factors include, without
limitation, competitive pressures in the footwear industry, changes in
the level of consumer spending on or preferences in footwear
merchandise, economic and other factors affecting retail market
conditions, the Company's ability to purchase attractive name brand
merchandise at reasonable discounts, the availability of desirable
store locations as well as management's ability to negotiate
acceptable lease terms and maintain supplier and business
relationships and open new stores in a timely manner. Other risk
factors are detailed in the Company's filings with the Securities and
Exchange Commission. The Company intends that these forward-looking
statements to speak only at the time of this release and does not
undertake to revise or confirm them as more information becomes
available.

    CONTACT: Shoe Pavilion, Inc.
             John D. Hellmann, 510-222-4405