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FOR IMMEDIATE RELEASE

KMART CORPORATION REPORTS SALES FOR SEPTEMBER

Troy, Michigan, October 11, 2001 -- Kmart Corporation (NYSE: KM) today reported that for the five-week period ended October 3, 2001 net sales were $ 2.987 billion, a decrease of 1.8%, compared to $3.044 billion in the same period last year. Net sales were flat on a same-store basis. The company noted that in September 2000, Kmart liquidated over $40 million of discontinued inventory, which accounted for 1.5% of its 2.4% same-store sales increase that month. Excluding these sales in both periods, Kmart's same-store sales for September 2001 would be 0.7% higher.

Net sales for the 35 weeks ended October 3, 2001 were $22.9 billion, down 0.6% from $23.0 billion the same period in 2000. On a same-store basis, net sales rose 1.0%.

"In light of the external events and internal changes during the month of September, we are pleased with our results," said Chuck Conaway, Chairman and CEO of Kmart Corporation. "The horrific tragedy of September 11 saddened all of us at Kmart. We were affected significantly that day, as we had to close numerous high volume stores in the New York City and Washington D.C. areas and shorten store hours for the remaining stores in those areas. However, with basic items accounting for approximately 40% of our business, we have been able to maintain our sales base even in times of uncertainty."

Mr. Conaway continued, "The majority of our stores have now completed their resets, adding to the strength of our high frequency categories, which continue to drive our business. In addition, we launched our BlueLight Always program on September 1. This has allowed us to reduce our reliance on advertising by nearly 20%. Unfortunately, our launch included a heavy television campaign, which was interrupted by the September 11 tragedy. We continue to execute our plan and we are taking the necessary actions, on both the structural and cultural side of the business, to transform Kmart into a retailer of choice."

					Change
($ Millions)	10-03-01		10-04-00		All Stores	Same-Store
Total Kmart	$2,987		$3,044		(1.8%)	0.0%

					Change
($ Millions)	10-03-01		10-04-00		All Stores	Same-Store
Total Kmart	$22,857		$23,005		(0.6%)	1.0%
# of Store Locations	2,114		2,163		(2.3%)

Cautionary Statement Regarding Forward-looking Information

Statements herein related to future performance are forward-looking statements and are subject to risks and uncertainties that are set forth in the Company’s filings with the Securities and Exchange Commission, which are incorporated herein by reference. Actual results may materially differ from anticipated results described in such statements. Statements herein speak only as of the date of this release and the Company does not undertake to update such statements.

Kmart Corporation is a near-$40 billion company that serves America with more than 2,100 Kmart and Kmart Supercenter retail outlets and through its e-commerce shopping site www.bluelight.com. More information about Kmart sales is available by calling (248) 614-0480 and general information is available at www.bluelight.com under the "About Kmart" section.