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KMART CORPORATION REPORTS 4.1% INCREASE FOR SEPTEMBER 2000

TROY, Michigan, October 5, 2000 -- Kmart Corporation (KM) reports for the five-week period ended September 27, 2000 net sales of $3.077 billion, an increase of 4.1%, compared to $2.955 billion of the same period prior year. Net sales increased 2.4% on a same-store basis. Excluding the impact of store closings and inventory liquidation, same-store sales were 0.9% for the period.

Net sales for the 35 weeks ended September 27, 2000 were $22.914 billion, up 2.6% from $22.341 billion the same period. On a same-store basis, net sales rose 0.9%.

"September sales were below plan with promotional and clearance sales offsetting regular sales growth," said Chuck Conaway, Chairman and CEO of Kmart. "We continue to focus on inventory levels and inventory mix while dramatically raising the level of store execution."

Kmart Corporation serves America with 2,163 Kmart retail outlets. Kmart Corporation common stock is listed on the New York, Pacific and Chicago Stock Exchanges.