Sears Holdings' Expanded Strategic Alliance With Citigroup Makes Sears Card Available In Kmart Stores

Sears Holdings Corporation (NASDAQ: SHLD) announced that starting today, Oct. 27, 2005, customers shopping at Kmart stores will be able to apply for the Sears Card.

"The Sears Card is a tremendously powerful brand which has been part of millions of our customers' lives for more than 50 years," said Aylwin B. Lewis, chief executive officer and president of Sears Holdings. "We believe expanding the reach of the Sears Card and making it available through Kmart stores will provide our customers with greater shopping flexibility and choices. Kmart customers can also look forward to the same world-class service Citibank provides to our existing Sears' proprietary and Gold MasterCard cardmembers."

"The Sears card program is the largest and most well-known retail card program in the U.S.," said Vik Atal, chairman and chief executive officer of Citi Cards. "As the country's largest card issuer to the retail sector, Citi is proud to help Sears Holdings extend this successful program to the Kmart franchise. Both Citi and Sears Holdings are focused on deepening customer relationships by offering products and services that meet our clients' needs and exceed their expectations."

Sears Holdings announced in May that it had amended its agreement with Citibank and would be terminating Kmart's relationship with Household Bank (HSBC), which previously provided a private label credit card program for Kmart.

Most former holders of the Kmart Card will be receiving a new Sears card, issued by Citibank, which can be used across the breadth of Sears Holdings' franchise of stores. For those existing, eligible Kmart cardholders, the Sears Card should be arriving at their homes beginning this month. Once activated, those cards will be accepted at Kmart and Sears stores.

Customers should call Citi Cards Customer Service at 1-800-917-7700 if they have questions regarding their Sears Card accounts.

About Sears Holdings Corporation

Sears Holdings Corporation is the nation's third largest broadline retailer, with approximately $55 billion in annual revenues, and 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 Martha Stewart Everyday products, which are offered exclusively in the U.S. by Kmart and in Canada by Sears Canada. The Company is the nation's largest provider of home services, with more than 14 million service calls made annually. For more information, visit Sears Holdings' website at .

About Citi

Citi is a member of Citigroup (NYSE: C). Citigroup, the leading global financial services company, has some 200 million customer accounts and does business in more than 100 countries, providing consumers, corporations, governments and institutions with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, securities brokerage, and wealth management. Major brand names under Citigroup's trademark red umbrella include Citibank, CitiFinancial, Primerica, Smith Barney and Banamex. Additional information may be found at .

SOURCE: Sears Holdings Corporation

CONTACT: Sears Holdings Public Relations, +1-847-286-8371, or Janis
Tarter - Citigroup, +1-415-658-4256

Web site:

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