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Press Release

Sears Holdings Establishes New Apparel Office in San Francisco
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Sears Public Relations And Communications
(847) 286-8371

Sears Holdings Establishes New Apparel Office in San Francisco

   Thor Equities signs nation's fourth largest retailer to occupy 25,000
          square feet in Market Street's historic Phelan Building

    SAN FRANCISCO, Feb. 25 /PRNewswire-FirstCall/ -- Sears Holdings
announced today that the company has signed a long-term lease with Thor
Equities to occupy 25,000 square feet in the historic Phelan Building,
officially establishing a new San Francisco apparel office.

    "We are thrilled that Sears has chosen San Francisco for its West Coast
apparel office," said Mayor Gavin Newsom. "San Francisco offers leading
retailers like Sears Holdings the perfect location to recruit and retain
the creative talent that drives the apparel industry. Sears' decision not
only brings new jobs and investment to the City, but also anchors Union
Square with the offices of one of the largest retailers in the nation."

    "Sears Holdings believes that by creating a presence in California, we
will greatly enhance our ability to attract talent within one of the
country's centers of excellence for the apparel industry. After an
exhaustive search we know we have found the right location to meet the
needs of our apparel business as we continue to grow and we are excited to
be a part of the San Francisco Community. I also invite anyone who wants to
be part of this unique opportunity and to be part of what we are building
to apply," said John Goodman EVP, Apparel and Home, Sears Holdings.

    Sears Holdings' West Coast apparel office will be located on the sixth
floor at 760 Market Street - site of Senator Phelan's original office.

    "We're proud to welcome members of the company's apparel team to what
has rapidly become one of the hottest properties in downtown San
Francisco," said Joseph Sitt, CEO of Thor Equities. "The Phelan building --
a beloved San Francisco historic landmark with a host of traditional office
spaces -- has undergone a classic restoration and reinterpretation with
open floor plans of creative spaces to better suit the modern office
community."

    Goodman added, "This office continues Sears Holdings' commitment to
enhancing our apparel offerings and business. Along with the new space in
San Francisco, we operate our design offices in Lower Manhattan, and have a
team of associates in our Hoffman Estates Support Center dedicated to
giving our customers more reasons to shop our stores and our Web sites
everyday."

    Sears Holdings' San Francisco office will include merchandising
positions across both the Sears and Kmart apparel formats. Associates will
immediately begin occupying the space and qualified candidates looking to
apply may do so by visiting http://www.searsholdings.com/careers.

    About Sears Holdings Corporation

    Sears Holdings Corporation is the nation's fourth largest broadline
retailer with approximately 3,900 full-line and specialty retail stores in
the United States and Canada. Sears Holdings is the leading home appliance
retailer as well as a leader in tools, lawn and garden, home electronics
and automotive repair and maintenance. Key proprietary brands include
Kenmore, Craftsman and DieHard, and a broad apparel offering, including
such well-known labels as Lands' End, Jaclyn Smith and Joe Boxer, as well
as the Apostrophe and Covington brands. It also has the Country Living
collection, which is offered by Sears and Kmart. We are the nation's
largest provider of home services, with more than 12 million service calls
made annually. Sears Holdings Corporation operates through its
subsidiaries, including Sears, Roebuck and Co. and Kmart Corporation. For
more information, visit Sears Holdings' website at http://www.searsholdings.com.

    About Thor Equities

    Thor Equities is a leader in urban real estate development, leasing and
management, pursuing premier hotel, commercial, retail and mixed-use assets
in high-density areas. Thor Equities provides the best possible "High
Street" retail, commercial, hotel and mixed-use building environments
within urban centers across the United States - all while delivering
attractive, risk-adjusted returns to investors.


SOURCE Sears Holdings


Web site: http://www.searsholdings.com

CONTACT: News Media, Sears Holdings Public Relations,
+1-847-286-6093; or Stefan Friedman of Thor Equities,
+1-646-241-7786; or Mayor's Office of Communications,
+1-415-554-6131
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