Steven Madden, Ltd. Acquires a Market Leading Accessories Business, Daniel M. Friedman & Associates

~ Company Acquires Its Accessories Licensee to Further Strengthen and Expand

Accessories Platform ~

~ Company Effectively Uses Cash to Add a Complementary and

Profitable Business ~

Feb 08, 2006, 00:00 ET from Steven Madden, Ltd.

    LONG ISLAND CITY, N.Y., Feb. 8 /PRNewswire-FirstCall/ -- Steven Madden,
 Ltd. (Nasdaq:   SHOO), a leading designer, wholesaler and marketer of fashion
 footwear for women, men and children, today announced it has completed the
 acquisition of privately held Daniel M. Friedman & Associates, a designer,
 manufacturer, and distributor of handbags, belts and related accessories.
     The acquisition was completed for $18 million in cash and includes certain
 earn out provisions that are based on financial performance through 2010.  The
 transaction is expected to be immediately accretive, contributing
 approximately $0.15 - $0.18 in earnings per diluted share within the first
 full year of ownership excluding amortization of intangibles associated with
 the acquisition, the amount of which is still being determined.
     This strategic acquisition will enable the Company to further augment and
 complement its core footwear category and continue to expand its reach into
 the branded lifestyle concept.  Moreover, the Company believes the acquisition
 will provide additional design and management talent and will further bolster
 Steven Madden, Ltd.'s already strong operating team.
     "Not only is the accessories category highly complementary to our footwear
 business, but this acquisition ties in perfectly with our strategy of
 developing Steven Madden, Ltd. into a global lifestyle brand," commented
 Jamieson Karson, Chairman and Chief Executive Officer of Steven Madden, Ltd.
 "This transaction affords us more control over our accessories business as
 Steve will be intimately involved in the creative process as we develop our
 handbags and other categories to their fullest potential.  Direct ownership of
 this strong and proven business represents a very effective use of our cash
 that we expect will provide significant return to our shareholders."
     Steven Madden, Ltd. signed a licensing agreement with Daniel M. Friedman &
 Associates for handbags and related accessories in July 2005.  Under this
 previous licensing agreement between the two companies, certain Steven Madden,
 Ltd. retail stores are currently receiving shipments of Steve Madden
 accessories from Daniel M. Friedman & Associates, and product is planned to
 launch in wholesale accounts in March 2006.
     Founded in 1995, Daniel M. Friedman & Associates is a leading manufacturer
 and distributor of brand name fashion handbags and accessories and offers a
 proven and successful business model.  In addition to the current Steve Madden
 license, the Company holds accessory licenses for Betsey Johnson, Ellen Tracy,
 and others.  The Company is also well known for its private label offerings as
 well as its own fashion belt line under the Fina Firenze brand.  The Company
 most recently achieved an approximate $41 million in net sales (unaudited) for
 fiscal 2005.
     Effectively immediately, Daniel M. Friedman & Associates will become a
 wholly-owned subsidiary of Steven Madden, Ltd., maintaining its existing
 business model and current licenses while developing Steve Madden handbags and
 belts.  Daniel M. Friedman & Associates will retain its current operations and
 location in New York City.
     "We have had a long standing relationship with Steven Madden, Ltd. and are
 excited to start working together in this new capacity," commented Daniel M.
 Friedman.  "With our shared vision of developing creative and trend right
 products, we feel that this was a logical step in our relationship and we are
 honored to formally partner with one of the leading fashion forward companies
 in the marketplace.  I am extremely confident that our business will continue
 to thrive under the leadership of Steve Madden, Ltd."
     Mr. Karson concluded, "We are excited about this opportunity to build on
 the momentum of last year and bring together two well-seasoned, highly
 talented management and design teams.  Led by Steve, the newly combined design
 group will develop fresh and fashion right product across multiple categories
 under the Steven Madden, Ltd. brand.  We welcome Daniel Friedman and his team
 and look forward to a successful future together."
     Steven Madden, Ltd. designs and markets fashion-forward footwear for
 women, men and children.  The shoes are sold through company-owned retail
 stores, department stores, apparel and footwear specialty stores, and on-line
 at  The Company has several licenses for the Steve
 Madden brand, including handbags, eyewear, hosiery, and belts, and owns and
 operates 99 retail stores, including its online store. The Company is also the
 licensee for l.e.i. Footwear, Candie's Footwear and UNIONBAY Men's Footwear.
     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

SOURCE Steven Madden, Ltd.