Page 2 – Steven Madden, Ltd. Announces Third Quarter Results

          Edward Rosenfeld, Chairman and Chief Executive Officer, stated, “We are encouraged by our third quarter performance, as we gained momentum despite an increasingly challenging environment. In addition to continued strong performance from our Madden Girl and Daniel M. Friedman segments, we are very pleased to have achieved double-digit percentage net sales gains in our core Steve Madden Women’s and Steven segments in our wholesale division, as well as in our Retail division. We also successfully transitioned our Candie’s business to a new team and a “first cost” operating model during the quarter, and we believe that this division will quickly realize improved returns. We are continuing to receive positive reactions to our products from both wholesale customers and consumers, as Steve and his talented design team remain focused on creating exceptional, fashion-forward products.”

          Arvind Dharia, Chief Financial Officer, commented, “We have continued to prudently manage the business throughout the year and maintained a very strong financial position which contributes to our ability to navigate the current economic environment. Our balance sheet continues to be pristine, as we ended the quarter with $56.7 million in cash, cash equivalents, and marketable securities, no debt, and total stockholders’ equity of $198.9 million. We remain confident the Company is well positioned financially.”

Company Outlook

          Based on trends to date this year and current visibility, the Company is raising its guidance for the full fiscal year. The Company now expects 2008 net sales will increase 5% to 6% compared to fiscal 2007 and earnings per diluted share will range between $1.65 and $1.70, excluding the previously mentioned impact of the one-time charge recognized in first quarter. Including the impact of the one-time charge, earnings per diluted share are expected to range between $1.49 and $1.54.

          Mr. Rosenfeld concluded, “The Company is experiencing positive trends heading into the end of 2008. We are encouraged by our recent performance and believe that Steve Madden is well positioned to continue capitalizing on current and emerging footwear trends. However, we are certainly not immune to the fluctuations in the economy and are keeping a close watch on issues affecting consumers and the retail industry as a whole. We remain cautiously optimistic about the fourth quarter and full year, and are maintaining our conservative approach to managing the business through this volatile period in the retail industry.”

Conference Call Information

          Interested shareholders are invited to listen to the third quarter earnings conference call scheduled for today, Thursday, November 6, 2008, at 10 a.m. Eastern Time. The call will be broadcast live over the Internet and can be accessed by logging onto http://www.stevemadden.com. An online archive of the broadcast will be available within one hour of the conclusion of the call and will be accessible until November 19, 2008. Additionally, a replay of the call can be accessed by dialing 800-642-1687, passcode 70083519, and will be available until November 12, 2008.

          Steve Madden designs and markets fashion-forward footwear and accessories for women, men and children. The shoes and accessories are sold through company-owned retail stores, department stores, apparel and footwear specialty stores, and online at www.stevemadden.com. The Company has several licensees for its brands, including for outerwear, cold weather accessories, eyewear, and hosiery and owns and operates 99 retail stores, including its online store. The Company is the licensee for footwear, handbags and belts for Fabulosity, for footwear for Elizabeth and James and l.e.i. and for handbags and belts for Betsey Johnson, Daisy Fuentes and Tracy Reese.