Kmart Design Group Opens Offices in New York

Senior Vice President and Chief Creative Officer Lisa Schultz to lead designers in the heart of Chelsea

Kmart Holding Corporation (NASDAQ: KMRT) today announced the opening of the Kmart Design Group Office in New York. The office, located at 111 8th Avenue, is the first product design presence Kmart has held in New York and is home to Lisa Schultz, Senior Vice President and Chief Creative Officer, and her team of designers.

In the fall of 2004, Kmart will unveil its first collection that has been entirely refocused and redesigned in-house by the Kmart Design Group. With a focus on quality and style, the design team will redefine Kmart's exclusive brands and offer customers an even wider range of products, all at a great value.

Lisa Schultz joined Kmart in September of 2003 as Senior Vice President and Chief Creative Officer, a newly created position, and is responsible for the creative vision of Kmart. Prior to her position at Kmart, Schultz was Executive Vice President of Product Development and Design at Gap, Inc. for 14 years and has held executive positions at Ralph Lauren and Calvin Klein.

Schultz's design team, led by Divisional Vice Presidents June Beckstead, Orlando Carreras, Matthew Morris, and Kim Omae, officially opened the office March 18.

Prior to joining Kmart, June Beckstead, Divisional Vice President, Women's, Girls, Infant, and Toddler was Vice President of Product Design at Gap Inc.

Orlando Carreras, Divisional Vice President, Men's and Boys, is the former head of men's design at Pacific Sunwear.

Matthew Morris, Divisional Vice President, Home, is a former consultant to designer Donna Karan and is the founder of Blue Ribbon Dog Company.

Kim Omae, who has been with Kmart for nearly five years, has been promoted to Divisional Vice President, Intimate Apparel, Sleepwear, and Accessories. Omae served most recently as a Design Director.

Designer candidates interested in joining the Kmart team may send a resume and cover letter to . Please reference source code NYDESIGN.

About Kmart Holding Corporation

Kmart Holding Corporation (NASDAQ: KMRT) and its subsidiaries (together, "Kmart") is a mass merchandising company that offers customers quality products through a portfolio of exclusive brands that include Thalia Sodi, Jaclyn Smith, Joe Boxer, Kathy Ireland, Martha Stewart Everyday, Route 66 and Sesame Street. Kmart operates more than 1,500 stores in 49 states and is one of the largest employers in the country with approximately 158,000 associates. For more information visit the Company's website at .

Cautionary Statement Regarding Forward-Looking Information and Other Matters

Statements made by Kmart which address activities, events or developments that we expect or anticipate may occur in the future are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that reflect Kmart's current views with respect to current events and financial performance. Such forward-looking statements are based upon assumptions concerning future conditions that may ultimately prove to be inaccurate and involve risks, uncertainties and factors that could cause actual results to differ materially from any anticipated future results, express or implied, by such forward-looking statements. Factors that could cause actual results to differ materially from these forward-looking statements include, but are not limited to, factors relating to Kmart's internal operations and the external environment in which it operates; Kmart's ability to successfully implement business strategies and otherwise fund and execute planned changes in various aspects of the business marketplace; demand for the products of Kmart's key brand partners as well as the engagement of appropriate new brand partners; changes in consumer spending and Kmart's ability to anticipate buying patterns and implement appropriate inventory strategies; Kmart's ability to reverse its negative same-store sales trend; competitive pressures and other third party actions, including pressures from pricing and other promotional activities of competitors, as well as new competitive store openings; the resolution of allowed claims for which we are obligated to pay cash under the Plan of Reorganization; Kmart's ability to properly monitor its inventory needs in order to timely acquire desired goods in appropriate quantities and/or fulfill labor needs at planned costs; Kmart's ability to attract and retain customers; Kmart's ability to maintain normal terms with vendors and service providers; Kmart's ability to maintain contracts, including leases, that are critical to its operations; Kmart's ability to develop a market niche; regulatory and legal developments; general economic conditions; weather conditions, including those which affect buying patterns of Kmart's customers; and other factors affecting business beyond Kmart's control; Kmart's ability to attract, motivate and/or retain key executives and associates; and other risks detailed in Kmart's Securities and Exchange Commission filings. Kmart undertakes no obligation to release publicly the results of any revisions to these forward-looking statements to reflect events or circumstances after the date such statements were made.

SOURCE: Kmart Holding Corporation

CONTACT: Kmart Media Relations, +1-248-463-1021

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