June 15, 1998

Teresa Stephens
Corporate Affairs
(248) 643-1021

Kmart Announces Executive Appointments And Promotions

TROY, Mich. -- Kmart Corporation today announced a series of executive appointments and promotions designed to strengthen its logistics and merchandising divisions, effective immediately.

James Harr has joined Kmart as Divisional Vice President, Logistics Engineering Services and will oversee material handling and engineering processes in the distribution network. In this newly created position, he will report directly to Daniel Ferguson, Operations Vice President, Logistics. Harr has held logistics engineering positions with American Greeting Corp., Venture stores and McDonnell Douglas Corp., and most recently was Director of Planning and Engineering for Michael's Stores Inc.,

John Bohntinsky has joined Kmart as Divisional Vice President, Home Electronics and will oversee the merchandising operations of Home Electronics. He reports directly to William Anderson, Senior Vice President and General Merchandise Manager - Hardlines. Bohntinsky brings with him 35 years of retail experience at Sears and Best Buy. Most recently he was Vice President, Appliances, Lawn & Garden and Sporting Goods for Montgomery Ward.

Robert Fyler has been promoted to Divisional Vice President, Celebration. He oversees the Greeting Card, Gift Wrap, Candle, Book, Batteries, and Party Goods categories as well as the front checkout program. Fyler joined Kmart in 1995 as Category Manager and most recently served as Merchandise Manager, Kitchenware and Furniture. He reports directly to Jerome Kuske, Senior Vice President, General Merchandise Manager, Health and Beauty Care, Pharmacy, Consumables.

Also, effective July 6, Ann Morgan has been promoted to Divisional Vice President, Customer Service and will report directly to John Fulkerson, Vice President, Organizational Development and Training. She will be responsible for Field and Kmart Resource Center customer satisfaction initiatives and the Customer Care Network. Ann, a 20-year Kmart veteran, has held positions of increasing responsibility, most recently as Southwest Region Human Resource Director.

Kmart Corporation serves America with 2,117 Kmart, Big Kmart and Super Kmart stores. In addition to serving all 50 states, Kmart operations extend to Puerto Rico, Guam and the U.S. Virgin Islands. More information about Kmart is available through the World Wide Web at www.kmart.com.