November 11, 2000

Media Advisory

Kmart Actively Marketing NASCAR, CART Auto Racing Sponsorships
Retailer's Goal is to Exit Auto Racing Sponsorships by 2001 Seasons

TROY, Mich., Nov. 11, 2000 -- Kmart Corporation today confirmed that it is actively marketing its NASCAR and CART Auto Racing Team Sponsorships towards the goal of exiting the agreements prior to the 2001 auto racing seasons.

As Kmart strives to build a stronger emotional bond with its customers, advertising and marketing resources will be redirected from auto racing. Rather than devoting nearly $40 million annually to the racing sponsorships, Kmart will develop new promotional and marketing programs more directly aligned with customer research and preferences.

Kmart has been the primary sponsor of a NASCAR racing team for the past five years, three years with Haas Carter Motorsports. There are two years remaining on Kmart's current NASCAR racing sponsorship. One year remains on Kmart's sponsorship of the Newman/Haas CART Racing team, which began in 1988.

Kmart plans to continue to sell NASCAR merchandise and develop special in-store promotions due to strong customer interest in purchasing NASCAR branded products.

Parties interested in purchasing Kmart's NASCAR or CART Auto Racing Team Sponsorships should contact Ken Kramer, Kmart Divisional Vice President, Merchandise Presentation and Communication at (248) 643-3180, or via email at kkramer@kmart.com; or Ralph Hansen at Pegasus Promotions, Inc. at (847) 234-9270, or via email at RHansen500@aol.com.

Media Inquiries can be directed to Michele Jasukaitis, Director, Special Publicity, Kmart Corporation at (248) 643-5200, or via email at mjasukai@kmart.com.