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KMART CORPORATION REPORTS 2.8% COMPARABLE STORE SALES INCREASE FOR JULY

TROY, Mich., August 3, 2000 -- Kmart Corporation (NYSE: KM) today reported that July consolidated sales increased 2.8% on a comparable store basis. Total consolidated sales increased 4.6% to $2.583 billion for the four-week period ended July 26, 2000 compared with $2.468 billion for the same period last year.

Sales from consolidated operations for the 13 weeks ended July 26, 2000 were $8.998 billion, up 2.5% from $8.781 billion for the same period in 1999. On a comparable store basis, consolidated sales rose 0.7% for the quarter.

Sales from consolidated operations for the 26 weeks ended July 26, 2000 were $17.193 billion, up 2.0% from $16.859 billion for the first half of fiscal 1999. On a comparable store basis, consolidated sales rose 0.3% for the same period.

“While July sales were slightly below plan,” said Chuck Conaway, Chairman, President, and CEO of Kmart, "a number of categories had a particularly strong performance in July, including outdoor living, prescription drugs, consumables and housewares.”

Kmart Corporation serves America with 2,165 Kmart retail outlets. Kmart Corporation common stock is listed on the New York, Pacific and Chicago Stock Exchanges.