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March 7, 2008

Contact:
Taline Kundakji
Euro RSCG Worldwide PR
(212) 367-6922
Taline.Kundakji@eurorscg.com

Kirsten Whipple
Sears Holdings
(847) 286-3037
kwhippl@searshc.com

FOR IMMEDIATE RELEASE

KMART PHARMACY TO LAUNCH FIRST $1 OTC PROGRAM
Customers can purchase common medications for $1 with every prescription purchase

HOFFMAN ESTATES, Ill., (March 7, 2008) -- Kmart Pharmacy today announced the launch of the $1 Reward Program, which offers pharmacy customers a choice of 10 over-the-counter (OTC) medications from Kmart's proprietary American Fare brand for only $1 with every prescription purchase.

Popular OTC medications in the program include aspirin, ibuprofen, children's pain reliever, baby aspirin, nasal decongestant, cough suppressant, anti-diarrhea medication and cold & allergy tablets.

"At Kmart Pharmacy, we're always looking for ways to provide more value and quality to our customers - especially when healthcare costs are generally on the rise," said Mark Doerr, RPh, vice president of Kmart Pharmacy. "The $1 Reward Program gives our pharmacy customers an amazing deal and introduces them to our great private-label OTC products at the same time."

This program is launching at Kmart pharmacies in Florida today, and will be available at every Kmart in April. All of the $1 American Fare products, which are specially labeled, will be available behind the pharmacy counter. Regular-priced versions of the 10 American Fare products in the program will continue to be available on store shelves.

The $1 Reward Program is a great addition to the many special values Kmart Pharmacy already offers its customers. These include:

  • The Kmart 90-Day Generics Program provides a three-month supply of many common maintenance medications for just $15.
  • The GoldK program offers discounts of up to 20% on every prescription for uninsured customers over the age of 50.
  • The Caregiver's Marketplace program offers special savings on many products that family caregivers need to purchase regularly.
  • PetK is an exclusive pet medication discount program for pet owners.
  • In addition, the pharmacy offers various free screenings throughout the year to help customers become more aware of health issues they may be facing.

    About Kmart
    Kmart, a wholly owned subsidiary of Sears Holdings Corporation (NASDAQ: SHLD), is a mass merchandising company that offers customers quality products through a portfolio of exclusive brands that include Jaclyn Smith, Joe Boxer, Martha Stewart Everyday and Route 66. For more information visit the company's website at www.kmart.com or the Sears Holdings Corporation website at www.searsholdings.com.

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