November 20, 1997

Teresa Stephens
Media Relations
(248) 643-1021

KMART CORPORATION NAMES CECIL KEARSE, JERRY KUSKE TO EXECUTIVE MERCHANDISE POSITIONS

TROY, Mich. - Kmart Corporation today announced the promotion of 23-year Kmart veteran Cecil Kearse, 45, to the post of Senior Vice President and General Merchandise Manager, Home, and assigned responsibility for Consumables and Commodities to Jerry Kuske, 46, who will serve as Senior Vice President and General Merchandise Manager, Health, Beauty Care, Pharmacy and Consumables, effective Dec. 1, 1997.

In his new post, Kearse will be responsible for merchandising of the electronics, home fashions, home hardlines and jewelry categories. Kuske will be responsible for cosmetics, consumables, health and beauty care, and pharmacy. Kearse and Kuske will report directly to Andy Giancamilli, President and General Merchandise Manager for U.S. Kmart, along with Jack Smailes, Senior Vice President and GMM-Apparel and Bill Anderson, Senior Vice President and GMM-Hardlines.

"Cecil Kearse and Jerry Kuske are seasoned merchants and retail executives who have a strong understanding of the dynamics of bringing quality products to the shoppers who turn to Kmart for their everyday needs at prices that fit their lifestyles and budgets," said Giancamilli.

Kearse joined Kmart's apparel organization in 1974 and held merchandise and operations positions of increasing responsibility throughout his career, most recently as Vice President, Merchandise Presentation and Communications. His successor has not been named.

Kuske joined Kmart in 1995 from Perry Drug Stores where he was Senior Vice President, Merchandising and Marketing. Previously he served in senior merchandising posts from 1987 to 1994 at Payless Drug Stores.

Kmart Corporation serves America with 2,121 Kmart, Big Kmart and Super Kmart stores. In addition to all 50 states, Kmart operations extend to Puerto Rico, Guam and the U.S. Virgin Islands. More information about Kmart is available through the World Wide Web at www.kmart.com.