Robert M. Burton
Divisional Vice President, Investor Relations
(248) 463-1040

KMART CORPORATION REPORTS 3.4% COMPARABLE STORE SALES INCREASE FOR AUGUST

TROY, Mich., September 2, 1999 -- Kmart Corporation (NYSE: KM) today reported that August consolidated sales increased 3.4% on a comparable store basis. Total consolidated sales increased 5.6% to $2.546 billion for the four-week period ended August 25, 1999 compared with $2.411 billion for the same period last year.

Sales from consolidated operations for the 30 weeks ended August 25, 1999 were $19.447 billion, up 7.8% from $18.042 billion for the first 30 weeks of fiscal 1998. On a comparable store basis, consolidated sales rose 5.8% for the same period.

"Despite sluggish sales in back-to-school supplies, categories showing particular strength for August included children’s and men's apparel, home-related areas such as home electronics, housewares, and décor, as well as jewelry, fashion accessories, consumables and pharmaceuticals, "said Floyd Hall, Chairman, President, and CEO of Kmart.

Kmart Corporation serves America with 2,152 Kmart retail outlets. Kmart Corporation common stock is listed on the New York, Pacific and Chicago Stock Exchanges.