Kmart Corporation Joint Plan of Reorganization Accepted by Creditors

Confirmation Hearing to Begin Today

Kmart Corporation (Pink Sheets: KMRTQ) today announced that, in accordance with its previously announced timetable, the Confirmation Hearing to seek approval of its Plan of Reorganization is scheduled to commence today, Monday, April 14, 2003, at 10:00 a.m. in the U.S. Bankruptcy Court for the Northern District of Illinois, before the Honorable Judge Susan Pierson Sonderby.

In preparation for the Confirmation Hearing, after the close of business on Friday, April 11, 2003 the Company filed with the Court certain information supporting its Plan, including a summary of the voting results.

On a consolidated basis, all impaired classes voted in favor of the Plan. On a deconsolidated basis, all impaired classes of Kmart Corporation, the parent company, voted in favor of the Plan. However, certain impaired classes for some of the Company's subsidiaries voted to reject the Plan. Although no assurances can be made, the Company does not believe that these votes against the Plan are material.

Additional information regarding Kmart's Plan and confirmation hearing can be found at .

Kmart Corporation is a mass merchandising company that serves America through its Kmart and Kmart SuperCenter retail outlets. The Company's common stock is currently quoted on the Pink Sheets Electronic Quotation Service ( ) under the symbol KMRTQ.

Cautionary Statement Regarding Forward-Looking Information and Related Matters

Bankruptcy law does not permit solicitation of acceptances of the Plan of Reorganization until the Court approves the applicable Disclosure Statement relating to the Plan of Reorganization as providing adequate information of a kind, and in sufficient detail, as far as is reasonably practicable in light of the nature and history of the debtor and the condition of the debtor's books and records, that would enable a hypothetical reasonable investor typical of the holder of claims or interests of the relevant class to make an informed judgment about the Plan of Reorganization. On February 25, 2003, the Bankruptcy Court approved the Company's Disclosure Statement with respect to the First Amended Joint Plan of Reorganization and authorized a balloting and solicitation process that concluded on April 4, 2003. A hearing on confirmation of the First Amended Joint Plan of Reorganization is scheduled to commence in the Bankruptcy Court today, April 14, 2003. The Company will emerge from Chapter 11 if and when the Plan is confirmed by the Bankruptcy Court.

Statements made by Kmart which address activities, events or developments that we expect or anticipate may occur in the future, including certain of the information contained in the Plan of Reorganization; Disclosure Statement, and/or exhibits filed in conjunction therewith, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that reflect the Company's current views with respect to current and future events and financial performance. Such forward-looking statements are and will be, as the case may be, subject to many risks and uncertainties, including, but not limited to, Kmart's having filed for bankruptcy and factors relating to Kmart's operations and the business environment in which Kmart operates, which may cause the actual results of Kmart to be materially different from any future results expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially from these forward-looking statements include those set forth in Kmart's Annual Report on Form 10-K/A for the fiscal year ended January 29, 2003, or in other filings made, from time to time, by Kmart with the Securities and Exchange Commission (the "Company Filings"). The forward-looking statements speak only as of the date when made and Kmart does not undertake to update such statements.

Similarly, these and other factors set forth in the Company Filings, including the terms of the final reorganization plan ultimately confirmed by the Bankruptcy Court, can affect the value of the Company's various pre- petition liabilities, common stock and/or other securities. Until Kmart's plan of reorganization is confirmed by the Bankruptcy Court, the recoveries of pre-petition claims holders are subject to change.

If the final plan of reorganization confirmed by the Bankruptcy Court is consistent with the plan of reorganization recently filed with the Court, it would result in the cancellation of the existing Kmart common stock, with holders thereof receiving no distributions under the plan other than, possibly, for a minor interest in a creditor litigation trust to be established pursuant to the plan. In light of the foregoing, the Company considers the value of the common stock to be highly speculative and cautions equity holders that the stock may ultimately be determined to have no value.

Accordingly, the Company urges that appropriate caution be exercised with respect to existing and future investments in Kmart common stock or any claims relating to pre-petition liabilities and/or other Kmart securities.

SOURCE: Kmart Corporation

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

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