April 7, 1998

Teresa Stephens
Corporate Affairs
(248) 643-1021

KMART ANNOUNCES EXECUTIVE PROMOTIONS AND APPOINTMENTS

TROY, Mich. -- Kmart Corporation today announced a series of executive promotions and appointments designed to strengthen its merchandising, store operations and design divisions, effective immediately.

Lorna Nagler has been named Brand Director, Sesame Street, in addition to her current responsibilities as Divisional Vice President, Kidsworld. She will work with The Children's Television Network to oversee the development of the Sesame Street brand within Kmart. In her new position, she will continue to report to E. Jackson Smailes, Senior Vice President, General Merchandise Manager, Softlines. Nagler joined Kmart in 1996 and has held key merchandising posts with Kids R Us, Montgomery Ward and Lane Bryant stores.

Steve Ryman has been promoted to Merchandise Vice President, Martha Stewart Everyday brand. He will oversee the continued development of the Martha Stewart Everyday brand in the home fashions, lawn and garden and paint categories. Ryman joined Kmart in 1995 and previously held home fashions merchandising positions at Dayton Hudson and Shopko. In this newly created position, Ryman will continue to report to Cecil Kearse, Senior Vice President, General Merchandise Manager, Home and Jewelry.

Nicholas Just has been promoted to Divisional Vice President, Domestics, replacing Ryman. He will oversee all of the merchandising areas of soft home. Just, a 16-year Kmart veteran, most recently was Merchandise Manager for Home Fashions at Kmart. In his new post he will report directly to Cecil Kearse.

In a separate move, all of Kmart's regional vice president positions have been elevated to corporate officer posts. Kmart regional vice presidents are responsible for the day-to-operations of the Company's 2,037 Kmart and Big Kmart stores. The vice presidents, who will continue to report to Paul J. Hueber, Senior Vice President, Store Operations, are: Walter E. Holbrook, Vice President, Southeast Region; Michael P. Lynch, Vice President, Southwest Region; Leo M. Maniago, Vice President, Midwest Region; Stephen W. St. John, Vice President, Great Lakes Region; Leland M. Viliborghi, Vice President, Central Region; Douglas M. Meissner, Vice President, Northeast Region; John S. Valenti, Vice President, Southern Region, and David R. Fielding, Vice President, Northwest Region.

Kmart also announced that Stephen K. Li has been promoted to Divisional Vice President, Architectural and Engineering Services. A 28-year Kmart veteran, Li has held positions of increasing responsibility, most recently as a key developer in the design and support of Big Kmart store conversions. In this newly created position, he will continue to report directly to Harry Meeth III, Vice President, Design and Construction.

Kmart Corporation serves America with 2,136 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. More information about Kmart is available through the World Wide Web at www.kmart.com.