Kmart Launches La Vida Magazine, Hispanic Entertainment and Lifestyle Publication

Latin Salsa Artist Marc Anthony Exclusive CD Offer in La Vida

Kmart Corporation (NYSE: KM) announced today its inaugural issue of La Vida magazine, an entertainment and lifestyle magazine that contains features and articles that resonate with the heritage and cultural nuances of the Hispanic community. Reaching more than 10 million Spanish-speaking consumers in the U.S. each month, La Vida magazine will allow Kmart the opportunity to speak directly to its Hispanic customers through its targeted editorial content beginning with its first September 15 issue.

Following on the heels of the launch of the first Spanish-language weekly advertising circular for a national discount retailer, Kmart's La Vida magazine is yet another key element of Kmart's multicultural marketing strategy. The magazine builds a relationship with the Spanish-speaking community by incorporating relevant information with a blend of product offerings from Kmart, further demonstrating the company has what Hispanic customers need and want to live their lives at an affordable price.

The La Vida magazine will include topics such as entertainment news and artist profiles. The first issue features not only Marc Anthony on the cover, but also includes his special Kmart exclusive CD offer; horoscopes by internationally renowned astrologer and psychic, Walter Mercado; food and recipes by Giovanna Huyke, celebrity TV chef; health and beauty tips by Univision host and spokesperson for Sabado Gigante, Rachel Diaz; the inside scoop and gossip; Latin holidays; special in-store promotions and a section highlighting Kmart's employees.

The buying power of the U.S. Hispanic population has grown by more than 156 percent in the past seven years to approximately $452 billion, a phenomenal increase that experts say will keep climbing as the number of Hispanics continues to grow*. Kmart's La Vida magazine provides a compelling approach for its brand partners with an opportunity to directly target the Hispanic market. La Vida will incorporate thematic articles throughout the year on events that resonate in the Hispanic community, occurring in key months, and will include products that follow editorial content from Kmart's top-name brand partners.

Initial distribution of one million copies of the La Vida magazine will be in select markets with large Hispanic populations. The La Vida magazine will wrap the Kmart advertising circular which now appears weekly in Spanish within these markets: Nogales and Yuma, Arizona; Chicago; Los Angeles, Palm Springs and San Diego, California; El Paso and Laredo, Texas; Miami and New York.

"Kmart's La Vida Magazine is the first of its kind by a major discount retailer," said Barbara J. Firment, senior vice president of Advertising Sales and In-Store Presentation of Kmart Corporation. "The topics covered in La Vida are the mainstay of our stores -- from music, to health and beauty, to food and to our employees, who contribute a great deal to customer care and to their communities. This publication is just a natural extension for Kmart in that both traditionally and historically, the Hispanic community is one of our most loyal customer groups."

Earlier this year, Kmart unveiled its new "Kmart. Cosas para La Vida" marketing campaign, directly targeting its Spanish-speaking customers through television and radio advertising. In keeping with its commitment to this growing community, Kmart is continuing to strengthen its role as the leading discount retailer within the Hispanic market through its Spanish-language La Vida magazine and weekly advertising circular. Alturas Communications, Inc. developed the Kmart La Vida concept.

Kmart Corporation is a $36 billion company that serves America with more than 1,800 Kmart and Kmart SuperCenter retail outlets and through its e-commerce shopping site, http://www.kmart.com/.

Alturas Communications Inc. is a minority-owned, full-service marketing communications company specializing in multicultural and urban retail solutions. Headquartered in Denver, Alturas Communications also has offices in Detroit and Miami.

Meridian, Incorporated is a strategically focused, results-driven, multi-disciplined communications specialist providing a comprehensive array of advertising, creative, prepress, photography and digital/graphic art services. The company's clients include leaders in the retail, consumer products, B2B, magazines and textbook publishing industries. The company is part of the Black Dot Group, a subsidiary of Applied Graphics Technologies, Inc. (AMEX: AGD).

* Source: The Selig Center for Economic Growth at the

University of Georgia

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SOURCE: Kmart Corporation

CONTACT: Susan Dennis of Kmart Corporation, +1-248-463-1021,
sdennis1@kmart.com; or Nelda Carrizales Skevington of Alturas Communications,
Inc., +1-210-497-5200 or +1-210-416-0418

Web site: http://www.kmart.com/








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