Get on the Bus With Fun Back-to-School Offerings From Kmart

Kmart Management Corporation (NASDAQ: KMRT) today announced the launch of its 2003 back-to-school season with an advertising campaign featuring Vaughn Lowery, best known for his Boxer Boogie in the Company's popular JOE BOXER commercials. Reflective of the season's fresh collection that includes apparel, dorm decor and school supplies, the spot boosts the fun factor with a swinging Vaughn and cast of accomplished Boogie dancers.

"Getting on the bus and going back to school should be fun -- that is the essence of this campaign," said Kmart President and CEO Julian C. Day. "This back-to-school season, Kmart is taking up the fun factor by offering hip, new merchandise at great value. By showcasing our offerings in these spots, we hope students of all ages will think of Kmart as the destination for all of their back-to-school needs."

The commercials -- two 30-second spots and three 15-second spots -- begin airing in prime time on July 27 on network, cable and syndicated television and feature back-to-school favorites from Kmart's family of exclusive brands that includes JOE BOXER and Route 66 as well as popular national brands. The five spots include dancing kids, teens and moms emerging from lockers in a school setting, and strike synergy with back-to-school promotions offered in Kmart's weekly circular and in-store signage. The tagline for all back-to- school communication is "The Bus Stops Here." Building on the Store of the Neighborhood, one of the 30-second spots is designed to reach Kmart's Spanish- speaking customers and will air exclusively on the Univision and Telemundo networks.

The first 30- and 15-second spots highlight Kmart's JOE BOXER apparel assortment and feature a dancing Vaughn Lowery in his first appearance since his popular ads for the JOE BOXER holiday assortment at Kmart. Kmart's Lowery, who has gained recognition through appearances on The Today Show, Extra! and recurring parodies on The Tonight Show with Jay Leno, dances to the beat of the "JOE BOXER boogie" dressed, once again, in only his JOE BOXERs.

"Kmart is celebrating our first anniversary with JOE BOXER by launching a completely new back-to-school assortment," said Day. "The bus does stop at Kmart when it comes to great fashion and cool dorm accessories for this year's back-to-school season."

Two additional 30- and 15-second spots focus on denim, a back-to-school staple at Kmart, and feature young dancers and their moms in jeans from Route 66, Wrangler and Gitano brands.

The third 15-second commercial promotes Kmart's exciting new JOE BOXER back-to-school home furnishings collection. The JOE BOXER home collection includes fun bedding, furnishings, accessories, appliances, lighting, tabletop and school supplies in four bold and bright patterns -- "Bubbles," "Grateful Licky," "Goldfish Punch," and "Island Palm." The hip Collection is available for a limited time and includes everything a student needs to turn a drab dorm room into lively living quarters, all in the bold and bright colors synonymous with JOE BOXER style.

The commercials were directed by Barbara McDonough and produced by the New York office of TBWA\Chiat\Day. The Spanish language spot was developed by Cultura and was a joint production with TBWA\Chiat\Day.

Back-to-school promotions, weekly sales and sweepstakes will also be highlighted in Kmart's local radio advertising. In addition, the back-to- school season in the Kmart weekly circular begins with a pullout in the July 27 edition featuring promotional pricing on back-to-school necessities.

Kmart Holding Corporation (NASDAQ: KMRT) and its subsidiaries (together, "Kmart") is a mass merchandising company that offers customers quality products through a portfolio of exclusive brands that include DISNEY, JACLYN SMITH, JOE BOXER, KATHY IRELAND, MARTHA STEWART EVERYDAY, ROUTE 66, SESAME STREET, and THALIA SODI. Kmart operates more than 1,500 stores in 49 states and is one of the 10 largest employers in the country with 170,000 associates. For more information visit Kmart's website at www.kmart.com .

SOURCE: Kmart Holding Corporation

CONTACT: Michele Jasukaitis, +1-248-463-5200, mjasukai@kmart.com , or
Abigail Jacobs, +1-415-315-4241, ajacobs@kmart.com , both of Kmart

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