Steven Madden, Ltd. and the Barington Capital Group Reach Agreement - Company Will Allocate $25 Million to Share Repurchase and/

Steven Madden, Ltd. and the Barington Capital Group Reach
Agreement - Company Will Allocate $25 Million to Share Repurchase and/or
Dividends in 2005
~ Company will add an Additional Independent Director to the Board ~ 


LONG ISLAND CITY, N.Y., Feb. 2  /PRNewswire-FirstCall/ -- Steven Madden, Ltd.
(the "Company") and a group of investors led by Barington Capital Group, L.P.
(the "Barington Group") that has reported beneficial ownership of approximately
7.7% of the Company's outstanding shares, announced today that they have
reached an agreement that will avoid a proxy contest at the Company's 2005
annual meeting of shareholders.

Under the terms of the Settlement Agreement, the current Board, in its sole
discretion, will determine who will be nominated for re-election to the Board
of Directors at the 2005 annual meeting.  The Company will also add a new
independent Board member who will join the recently elected Harold D. Kahn as
independent candidates for election at the 2005 annual meeting.  The Barington
Group has agreed to vote for the election of each of the Board's nominees.

The Settlement Agreement includes assurances that the Company will dedicate
additional capital resources to the enhancement of shareholder value through
share repurchases (including possibly by self-tender offer) and/or dividends.
For the fiscal year ended December 31, 2004 the Company repurchased a total of
545,100 shares for an aggregate of $9.7 million.  For 2005, the Company has
committed to spend $25 million, an increase of approximately 150% over 2004. 
It has further committed to spend an additional $10 million in 2006.  Final
programs utilizing cash resources are subject to market conditions and
applicable legal requirements.

Under the Agreement the Board will meet with representatives of the Barington
Group on a quarterly basis to engage in an open dialogue with the Board.  The
Company has also agreed to appoint one of its independent directors as a lead
director.

Finally, the Agreement provides that the Barington Group will abide by certain
standstill provisions for a two year period.  The Barington Group will support
the Board through the 2006 annual meeting of shareholders, subject to the terms
of the Settlement Agreement, which will be incorporated into a Report on Form
8-K to be filed by the Company this week.

Jamie Karson, Chairman and Chief Executive Officer of Steven Madden, Ltd. and
the Outside Directors of the Company stated, "We are pleased that this matter
has been resolved in a manner that serves the best interests of our
stockholders.  It has always been our intent to enhance shareholder value and
this Agreement clearly evidences that intent."

"Our Board of Directors and the management team are very focused on growing the
business, improving profitability of various divisions, further building and
leveraging the Steve Madden brand, and enhancing shareholder value for the
long-term.  We collectively look forward to turning our full attention to
ensuring that Steven Madden, Ltd. remains one of the premier fashion footwear
companies in the marketplace."

James A. Mitarotonda, Chairman and Chief Executive Officer of Barington Capital
Group, stated,  "This agreement demonstrates the commitment of all parties to
addressing the interests of all stockholders in a significant and positive way.
 As we have previously stated, we are pleased the Company added Hal Kahn to its
Board last December so that the existing management team can benefit from Mr.
Kahn's retail and merchandising expertise.  We are also pleased with the
agreement to appoint a lead director and an additional independent director to
the Board and that the Company will dedicate $35 million over the next two
years to stockholders through share repurchases and/or dividends.  We believe
these actions will provide significant value to shareholders.  We are looking
forward to engaging in a constructive dialogue with the Board."

Steven Madden, Ltd. designs and markets fashion-forward footwear for women, men
and children. The shoes are sold through Steve Madden retail stores, department
stores, apparel and footwear specialty stores, and on-line at
http://www.stevemadden.com/ . The Company has several licenses for the Steve
Madden and Stevies brands, including eyewear, hosiery, and belts, owns and
operates one retail store under its Steven brand, and is the licensee for l.e.i
Footwear, Candie's Footwear and Unionbay Men's Footwear.

Barington Capital Group, L.P. is an investment management firm that primarily
invests in undervalued, small-capitalization companies.  Barington and its
principals are experienced value-added investors who have taken active roles in
assisting management teams in creating or improving shareholder value.

Statements in this press release that are not statements of historical or
current fact constitute "forward-looking statements" within the meaning of the
Private Securities Litigation Reform Act of 1995.  Such forward-looking
statements involve known and unknown risks, uncertainties and other unknown
factors that could cause the actual results of the Company to be materially
different from the historical results or from any future results expressed or
implied by such forward-looking statements.  In addition to statements which
explicitly describe such risks and uncertainties readers are urged to consider
statements labeled with the terms "believes," "belief," "expects," "intends,"
"anticipates" or "plans" to be uncertain and forward-looking.  The
forward-looking statements contained herein are also subject generally to other
risks and uncertainties that are described from time to time in the Company's
reports and registration statements filed with the Securities and Exchange
Commission. 

DATASOURCE: Steven Madden, Ltd.



CONTACT:  Matthew Sherman or Joele Frank, both of Joele Frank, Wilkinson

Brimmer Katcher, [phone]; or Cara O'Brien or Lila Sharifian, both of

Financial Dynamics, [phone], all for Steven Madden, Ltd. 



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

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