KMART CORPORATION NAMES NEW HEAD OF WOMEN’S APPAREL

J.C. Penney Exec, Cindy Sapienza, Joins Kmart as Divisional Vice President, Women's Apparel

TROY, Mich., July 25, 1997 - Kmart Corporation today announced that Lucinda "Cindy" Sapienza, 44, will be the company’s new Divisional Vice President, Women's Apparel, effective Aug. 1, 1997. In her new post, Sapienza will oversee the entire women's ready-to-wear category and initially report directly to Warren Flick, U.S. Kmart Stores President and Chief Operating Officer.

A veteran mass retailer, Sapienza was appointed earlier this year to the new post of Vice President, Brand Development for J.C. Penney. From 1993 to 1997, she was Divisional Vice President - Women's Apparel, responsible for the sales and profitability of their ready-to-wear businesses. Since first joining J.C. Penney in 1978, Sapienza held various key buying and merchandising posts in women’s special sizes, accessories, as well as children's apparel.

"Cindy Sapienza understands the needs of today's female discount shopper and how to build a successful women's merchandise offering on a large scale," said Flick. "By combining her merchandising savvy, leadership experience and energy with the resources of Kmart, we will be able to offer a stronger, more appealing women’s apparel assortment to our shoppers."

A graduate of Southwestern University in Georgetown, Texas, Sapienza began her career with Lord & Taylor as a department manager from 1975 to 1978. Ms. Sapienza has served on the Board of Directors of The Fashion Association and Easter Seals Society of Dallas and is a member of Fashions Group International and the YWCA Academy of Women Achievers.

Kmart Corporation serves America with 2,122 Kmart and Super Kmart Center retail outlets. In addition to serving all 50 states, Kmart operations extend to Puerto Rico, the U.S. Virgin Islands and Guam.