Michael J. Viola
Vice President and Treasurer
Investor Relations
(248) 643-1040

KMART CORPORATION REPORTS APRIL SALES

TROY, Mich., May 4, 2000 -- Kmart Corporation (NYSE: KM) today reported that April total consolidated sales increased 0.8% to $2.770 billion for the four-week period ended April 26, 2000 compared with $2.748 billion for the same period last year. Consolidated sales decreased 0.8% on a comparable store basis for the same period

Sales from consolidated operations for the 13 weeks ended April 26, 2000 were $8.195 billion, up 1.5% from $8.078 billion for the first 13 weeks of 1999. On a comparable store basis, consolidated sales were flat for the same period last year.

"We were disappointed with our sales performance for the month of April as we fell short of our sales plans for the Easter holiday selling period,” said Floyd Hall, Chairman, President and CEO of Kmart Corporation. “In spite of a weak overall performance, we were pleased that several categories achieved gains over last year and their sales plan for the month, including electronics, patio furniture, toys, stationery, pharmacy, jewelry and edibles.”

“When April results are combined with our performance in February and March, we will not meet our earnings plan for the first quarter. Without the planned comparable store sales gains, we will be unable to offset normal operating expense increases. Consequently, we expect to show a comparative decrease to the first quarter of last year, with earnings per share decreasing about $0.06 per share from the $0.11 per share we posted in 1999 (restated for SAB 101). While we held the line on expenses during the first quarter, we simply were not as promotional as we needed to be. We are, however, already taking steps to regain sales momentum so that we can meet or exceed the Company's financial plans for the year.”

Kmart will announce its final results for the First Quarter on May 11, 2000.

Kmart Corporation serves America with 2,171 Kmart retail outlets. Kmart Corporation common stock is listed on the New York, Pacific and Chicago Stock Exchanges.

Cautionary Statement Regarding Forward-looking Information

Statements, other than those based on historical facts, including the Year 2000 statements, which address activities, events, or developments that the Company expects or anticipates may occur in the future are forward-looking statements which are based upon a number of assumptions concerning further conditions that may ultimately prove to be inaccurate. Actual events and results may materially differ from anticipated results described in any forward-looking statements. The Company's ability to achieve such results is subject to certain risks and uncertainties, including, but not limited to, economic and weather conditions which affect buying patterns of the Company's customers, changes in consumer spending and the Company's ability to anticipate buying patterns and implement appropriate inventory strategies, continued availability of capital and financing, competitive factors, and other factors affecting business beyond the Company's control. Consequently, all of the forward-looking statements are qualified by these cautionary statements and there can be no assurance that the results or developments anticipated by the Company will be realized or that they will have the expected effects on the Company or its business or operations.