Kmart Announces New Marketing Agreement With Draftfcb

Kmart, a subsidiary of Sears Holdings Corporation (NASDAQ: SHLD), today announced that it has chosen Draftfcb as Kmart's new advertising agency of record effective May 1, 2007.

"We believe this agreement with Draftfcb will move Kmart a step closer toward its goals for the business and the brand," said Bill Stewart, Kmart's chief marketing officer. "As a company, we're committed to building lifetime relationships with our customers and Draftfcb has a proven track record of helping its clients achieve success by utilizing a full range of marketing tools and capabilities."

Draftfcb's scope of work will include all television, magazine, and radio advertising, customer analysis and strategy, data analysis, customer relationship marketing, and branding work.

"We're very much looking forward to working with Kmart," said Howard Draft, chairman and CEO of Draftfcb. "Everyone we have met at Kmart is focused on building their business by establishing even stronger connections with their loyal shoppers and bringing more people into their stores. Our two organizations have a shared commitment to accountability and creativity. We're looking forward to working together to uncover human insights that will incite consumer behavior in creative and measurable ways."

Grey Worldwide, Kmart's current agency of record, will assist in an orderly, three-month transition of work and is putting the finishing touches on the company's current campaign. "Grey has been a good partner over the years but we feel Draftfcb is uniquely qualified to assist in our needs right now," said Stewart. Grey will complete its contract with Kmart in the next 90 days.

About Kmart

Kmart, a wholly owned subsidiary of Sears Holdings Corporation (NASDAQ: SHLD), is a mass merchandising company that offers customers quality products through a portfolio of exclusive brands that include Jaclyn Smith, Joe Boxer, Martha Stewart Everyday and Route 66. For more information visit the company's website at or the Sears Holdings Corporation website at .

About Draftfcb

Launched in 2006, Draftfcb is a modern agency model for clients seeking creative, accountable marketing programs that build business and deliver a high Return on Ideas™. With more than 130 years of combined expertise, the newly formed company has its roots in both consumer advertising and behavioral, data-driven direct marketing. The agency is the first global, behavior-based, fully inclusive, highly creative and accountable marketing communications organization to operate against a single P&L. The Draftfcb network spans 110 countries, with more than 9,000 employees worldwide, and is part of the Interpublic Group of Companies (NYSE: IPG). For more information, visit .

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SOURCE: Sears Holdings Corporation

CONTACT: Chris Brathwaite, Sears Holdings Public Relations,
+1-847-286-4681, or Wally Petersen of Draftfcb, +1-312-397-7599

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