November 14, 1997

Shawn M. Kahle
Vice President, Corporate Affairs
(248) 637-4201

Robert M. Burton
Divisional Vice President, Investor Relations
(248) 643-1040

Kmart Corporation Names Andrew A. Giancamilli Chief Merchant
Warren Flick Announces Retirement

TROY, Mich., Nov. 12, 1997 Ð Kmart Chairman, President and CEO Floyd Hall today announced the appointment of Andrew A. Giancamilli as the new President and General Merchandise Manager, U.S. Kmart, succeeding Warren Flick, President and Chief Operating Officer, U.S. Kmart, who has elected to retire from active business responsibility. The moves will be effective December 1, 1997.

Mr. Giancamilli will report directly to Mr. Hall and hold the top executive post responsible for all of Kmart's merchandising, logistics, marketing, advertising and product presentation.

"As a key member of our executive team, Andy Giancamilli has built an outstanding reputation as a can-do merchant whose results have earned him respect throughout the company and the industry," said Mr. Hall. "His proven leadership skills and broad-based retail experience assure us of continued momentum in the renaissance of Kmart."

Mr. Giancamilli, who joined Kmart in March 1995 from his post as President and Chief Operating Officer of Perry Drug Stores, has advanced rapidly at Kmart. A member of Kmart's Executive Committee, most recently he has served as Senior Vice President and General Merchandise Manager overseeing $12 billion of business in home fashions, home decor, housewares, electronics, jewelry, cosmetics, consumables as well as the "Pantry" operations featured in Big Kmart stores. In previous posts at Kmart, Mr. Giancamilli was the senior executive overseeing pharmacy, consumables, greeting cards, stationery, photography and health and beauty care.

Commenting on Mr. Flick's retirement, Mr. Hall said: "Warren's focus on improving our merchandising organization and assortments will have an enduring benefit for our business. I greatly appreciate the contributions that he has made to Kmart and wish him well in his retirement."

In stepping down from his post at Kmart and from the company's Board of Directors, Mr. Flick said: "It has been the high point of my career to be a member of Floyd Hall's team at Kmart and serve on the Board of Directors. My decision to retire reflects my commitment and desire to devote considerable time to my family and personal well-being. I sincerely thank Floyd for his confidence in me the past 2 years and his respect for my decision."

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