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FOR IMMEDIATE RELEASE

KMART CORPORATION REPORTS SAME STORE SALES FOR AUGUST

Troy, Michigan, September 6, 2001 -- Kmart Corporation (NYSE: KM) today reported that for the four-week period ended August 29, 2001 net sales increased 0.2% on a same-store basis. Excluding the impact of inventory liquidation sales in conjunction with last year's second quarter strategic action charge, same-store sales increased 2.3% for this month. Total net sales were $2.6 billion, a decrease of 2.6% from $2.7 billion for the same period last year.

Net sales for the thirty-week period ended August 29, 2001 increased 1.2% on a same-store basis. Total net sales were $19.9 billion, down slightly from $20.0 billion for the same period last year.

''During this past month, we experienced growth as increases in back to school supplies and high frequency categories were offset by our new lower prices under the BlueLight Always program. We continue our transformation through significantly reducing our reliance on advertising and striving to improve our in stock levels,'' said Chuck Conaway, Chairman and CEO of Kmart Corporation. ''To further support our high frequency strategy, on August 29, we unveiled our national BlueLight brand strategy, which rewards our customers through value-based programs.''

					Change
($ Millions)	08-29-01		08-30-00		All Stores	Same-Store
Total Kmart	$2,616		$2,685		(2.6%)	0.2%

					Change
($ Millions)	08-29-01		08-30-00		All Stores	Same-Store
Total Kmart	$19,871		$19,962		(0.5%)	1.2%
# of Store Locations	2,112		2,164		(2.4%)

Cautionary Statement Regarding Forward-looking Information
Statements herein related to future performance are forward-looking statements and are subject to risks and uncertainties that are set forth in the Company’s filings with the Securities and Exchange Commission, which are incorporated herein by reference. Actual results may materially differ from anticipated results described in such statements. Statements herein speak only as of the date of this release and the Company does not undertake to update such statements.

Kmart Corporation is a near-$40 billion company that serves America with more than 2,100 Kmart and Kmart Supercenter retail outlets and through its e-commerce shopping site www.bluelight.com. More information about Kmart sales is available by calling (248) 614-0480 and general information is available at www.bluelight.com under the ''About Kmart'' section.