April 8, 1998

Mary Lorencz
Kmart Corporate Affairs
248 643 1021

Paula Baldwin
CME Public Relations
612 347 1316

ROSIE O’DONNELL AND PENNY MARSHALL PROMOTE KMART PRICE GUARANTEE IN NEW AD CAMPAIGN

TROY, Mich., April 8, 1998 -- Kmart Corporation will remind consumers of its low price guarantee in a new television commercial breaking in Big Kmart markets across the country Wednesday, April 8. The :30 spot features Rosie O’Donnell and Penny Marshall as price police who caution consumers about "unnecessary disbursement of domestic funds" by shopping stores other than Big Kmart.

"Kmart wants to remind our customers that our price guarantee assures them of low prices all the time, and lowest sale prices every time," says Larry Davis, Kmart vice president of advertising and marketing. "Kmart is committed to providing good value to our customers every day and making shopping Kmart a better way to save."

The commercial features Rosie O’Donnell and Penny Marshall as uniformed and badged "price police" who approach a shopper about Violation 421, unnecessary disbursement of domestic funds. As they review her sales receipt, they point out that, had she shopped Big Kmart, she could have saved on several items.

Produced by Campbell Mithun Esty, the commercial breaks on affiliate and cable television stations in 18 Big Kmart markets across the U.S. including top 10 markets Chicago, Detroit, Los Angeles, New York, Philadelphia and Washington, D.C., as well as Baltimore; Ft. Myers, Jacksonville, Orlando, Tampa and West Palm Beach, Fla.; Harrisburg, Hartford and Wilkes-Barre, Penn.; Kansas City, Mo.; Phoenix, Ariz.; and Houston, Texas.

In-store, the guarantee will be promoted through signage and Price Police badges worn by Big Kmart store team members.

Kmart launched the conversion to Big Kmart in 1997. Currently, 670 stores have been converted to the improved and larger layout. Another 525 stores will be converted to the format in 1998.

Kmart Corporation serves America with 2,126 Kmart, Big Kmart and Super Kmart retail outlets. 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 on the World Wide Web at www.kmart.com.