Stride Rite Announces Changes to Pension Plans; Freezes Its Defined Benefit Pension Plan and Enhances Its Defined Contribution

The Stride Rite Corporation (NYSE: SRR) today announced
that it has adopted changes to its defined benefit pension plan
effective December 31, 2006, and will significantly increase matching
contributions to its defined contribution plans beginning January 1,
2007. These changes will shift the future focus of retirement benefits
toward the more predictable cost structure of 401(k), or defined
contribution plans and away from the defined benefit pension plan.
   The changes to the plans will affect most associates and senior
management. They include:

   --  Stopping the accrual of future benefits in the company's
        defined benefit pension plan and fully preserving all
        retirement benefits that employees will have earned as of
        December 31, 2006.

   --  Redesigning the 401(k) savings plans to significantly improve
        the company-funded contribution so that there is a dollar for
        dollar company match on up to 6 percent of salary deferrals.

   --  Adopting other enhancements within the 401(k) savings plans to
        allow all participants to make full use of the maximum
        statutory deferral limits.

   The changes do not affect the vested accrued pension benefits of
former associates, including Stride Rite retirees.
   "Continuing to support our associates' retirements while
maintaining Stride Rite's financial strength and stability is an issue
that we have given careful consideration to over the past year," said
David Chamberlain, Stride Rite's Chairman and CEO. "We believe that
these changes, while difficult, will achieve a balance between
controlling our pension costs, while still enabling our associates to
prepare for retirement.
   "These actions are being taken to provide Stride Rite with a more
predictable and affordable cost structure for retirement benefits and
will enhance our ability to compete. Many companies today, including
most of the ones that we compete directly with, do not sponsor defined
benefit pension plans. Furthermore, we believe that these steps are
both prudent and appropriate at a time of uncertainty in the
legislative and regulatory direction regarding defined benefit pension
plans."

   COMPANY OVERVIEW:

   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,
Saucony, Grasshoppers, Munchkin, Spot-bilt and Hind. 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 and www.saucony.com.

   SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION
REFORM ACT OF 1995:

   This announcement includes forward-looking statements that are not
based on historical facts and that 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, including statements regarding the expected cost
savings related to the changes to the Company's defined benefit plan.
Such 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. 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 could affect the
Company's future results are contained in our periodic filings with
the Securities and Exchange Commission. We expressly disclaim any
responsibility to update forward-looking statements.