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

KMART CORPORATION REPORTS AUGUST SALES RESULTS

TROY, Mich., September 3, 1998-- Kmart Corporation (NYSE: KM) today reported that August consolidated sales increased 2.9% on a comparable store basis. Total consolidated sales increased 3.1% to $2.411 billion for the four-week period ended August 26, 1998 compared with $2.338 billion for the same period last year.

Sales from consolidated operations for the 30 weeks ended August 26, 1998 were $18.042 billion, up 3.4% from $17.447 billion for the 30 weeks ending August 27, 1997. On a comparable store basis, consolidated sales rose 4.8% for the same period.

"August comparable sales were slightly softer than expected, due to lower levels of clearance sales and less promotional activity," said Floyd Hall, Chairman, President and CEO of Kmart. "Categories showing particular strength for the month included women's apparel, housewares and home appliances, home fashions, outdoor sporting goods, jewelry, photography, health and beauty, books and pharmaceuticals."

Kmart Corporation serves America with 2,115 Kmart retail outlets. Kmart Corporation common stock is listed on the New York, Pacific and Chicago Stock Exchanges.