The City of Topeka has approved the issuance of $110m in industrial revenue bonds for Payless ShoeSource Inc. Payless will use the funds over a four-year period from 2000 through 2003.

The bonds will be issued for the continual improvement and remodeling of the corporate headquarters, a new manufacturing unit at its distribution center, building improvements at the distribution center to enhance its capacity, and systems enhancements to support the continued growth of the company. Payless intends to be the sole investor in the bonds.

These projects are expected to increase the Payless workforce in Topeka by 150 over the four year period, as well as provide work for local contractors. Currently, Payless employs 1,000 at the corporate office and 900 at the distribution centre.

About Payless ShoeSource
Payless ShoeSource, Inc. is North America's largest family footwear
retailer. The company operates 4,623 Payless ShoeSource stores offering quality family footwear at affordable prices. Customers can also buy shoes over the Internet through Payless.com, at www.payless.com. Payless also operates 267 Parade stores featuring fashionable mid-priced women's footwear.