Stride Rite Acquires Robeez Footwear; Leading Global Marketer and Manufacturer of High-End Footwear For Babies & Young Children

   Stride Rite's Children's Footwear Expertise, Capital Strength Will
Help Robeez Continue To Realize Growth Potential

   The Stride Rite Corporation (NYSE: SRR) and Robeez Footwear Ltd.,
the world leader in soft-soled leather footwear for babies and young
children, today announced that Stride Rite has acquired Robeez for a
purchase price of $27.5 million (CDN$30.5 million) in cash.
   Founded in 1994 by Sandra Wilson and based in Burnaby, British
Columbia, Canada Robeez Footwear has grown over the past decade to
become the leading worldwide manufacturer of soft-soled footwear for
babies and young children. Recommended by experts and the first choice
of many parents, Robeez shoes and booties are available in a wide
range of designs and are sold internationally at thousands of
boutiques and specialty stores, including Nordstrom, Saks Fifth
Avenue, Bloomingdale's and Neiman Marcus, as well as in over 350
Stride Rite retail and licensed partner stores. Robeez is expected to
generate annual net sales of approximately $27 million (CDN$30
million) for the fiscal year ending August 31, 2006.
   "Robeez is a high-quality, innovative, well-known name in
children's footwear with solid growth prospects in North America and
internationally and we are delighted to add it to our portfolio of
nationally recognized lifestyle brands, including Stride Rite, Keds,
PRO-Keds, Saucony, Sperry Top-Sider and Tommy Hilfiger Footwear," said
David M. Chamberlain, Stride Rite's chairman and chief executive
officer. "We are also very pleased that Robeez founder Sandra Wilson
will remain with the Company as a consultant, as her ongoing
participation will ensure the continuation of the unique Robeez design
and brand vision."
   "We are extremely excited for Robeez to partner with Stride Rite,
North America's leader in premium children's footwear," said Sandra
Wilson, founder and chair of Robeez. "Stride Rite's industry-leading
expertise, capital strength and careful nurturing of its well-known
brands will provide a strong platform for us to execute our growth
strategies and capitalize on our current momentum. Stride Rite shares
the same commitment to high quality and innovative design that our
customers and retailers expect. We look forward to working with the
Stride Rite team to help Robeez reach its full potential."
   Stride Rite financed the transaction with a combination of cash on
hand and existing credit facilities.
   Lane, Berry & Co. International, LLC acted as financial advisor to
Stride Rite in connection with this transaction and rendered a
fairness opinion to Stride Rite's Board of Directors. Capital West
Partners acted as financial advisor to Robeez in connection with this
transaction.

   About Stride Rite

   The Stride Rite Corporation markets the leading brand of high
quality children's shoes in the United States. Other footwear products
for children and adults are marketed by the Company under well-known
brand names, including Keds, Sperry Top-Sider, Tommy Hilfiger
Footwear, Saucony, Grasshoppers, Munchkin, and Spot-bilt. Apparel
products are marketed by the Company under the Saucony and Hind brand
names. Information about the Company is available on our website -
www.strideritecorp.com. Information about the Company's brands and
product lines is available at www.striderite.com, www.keds.com,
www.sperrytopsider.com, www.grasshoppers.com, www.saucony.com and
www.hind.com.

   About Robeez Footwear Ltd.

   Since 1994, Robeez Footwear Ltd. has grown from one mom's
home-based business to the world's leading manufacturer and marketer
of soft-soled footwear for newborns to four-year olds. Recommended by
experts and the first choice of many parents, Robeez shoes and booties
are meticulously crafted using genuine leather. Soft, skid-resistant
soles encourage feet to flex and toes to grip, allowing developing
feet to grow naturally. Available in over 80 designs, the footwear is
sold internationally at thousands of boutiques and specialty stores,
including some of North America's most recognized retailers. Today,
Robeez has a multi-lingual, multi-currency website (www.robeez.com)
with offices and distribution throughout North America, Europe and
Australia.

   SAFE HARBOR STATEMENT

   This press release includes forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended and
Section 21E of the Securities Exchange Act of 1934, as amended, which
are intended to be covered by the safe harbors created thereby. These
forward-looking statements, including, but not limited to, statements
regarding upcoming product lines, division sales expectations, growth
expectations, and sales growth for the Company, reflect our current
views with respect to the future events or financial performance
discussed in the release, based on management's beliefs and
assumptions and information currently available. When used, the words
"believe", "anticipate", "estimate", "project", "should", "expect",
"appear" and similar expressions, which do not relate solely to
historical matters identify forward-looking statements. Investors are
cautioned that forward-looking statements are subject to risks,
uncertainties and assumptions and are not guarantees of future events
or performance, which may be affected by known and unknown risks,
trends and uncertainties, and should not place undue reliance on these
statements. Should one or more of these risks or uncertainties
materialize, or should our assumptions prove incorrect, actual results
may vary materially from those anticipated, projected or implied.
Factors that may cause or contribute to such differences include,
among others: international, national and local general economic,
political and market conditions; our reliance on independent
manufacturers in China and potential disruptions in such manufacturing
caused by difficulties associated with political instability in China,
the occurrence of a natural disaster or outbreak of a pandemic disease
in China, labor shortages or work stoppages, and changes in duty
structures; the impact of changes in the value of foreign currencies,
including the Chinese Yuen; the possible failure to retain the Tommy
Hilfiger footwear license or other current license agreements;
increased leverage from the financing of our recent acquisition;
intense competition among sellers of footwear; delay in opening new
stores; a decline in the volume of anticipated sales; revenues from
new product lines may fall below expectations; a delay in the launch
of new product lines; an inability to achieve expected results for new
retail concepts; general retail sales trends may be below
expectations; consumer fashion trends may shift to footwear styles not
currently included in our product lines; our retail customers,
including large department stores, may continue to consolidate or
restructure operations resulting in unexpected store closings; and
additional factors discussed from time to time in our filings with the
Securities and Exchange Commission (the "SEC"), all of which are
available at the SEC's website at www.sec.gov. We expressly disclaim
any responsibility to update forward-looking statements.