September 25, 1997

Robert M. Burton
Divisional Vice President, Investor Relations
Kmart Corporation
(248) 643-1040

KMART CORPORATION COMPLETES SALE OF BUILDERS SQUARE HOME IMPROVEMENT OPERATION

TROY, Mich., September 25, 1997 – Kmart Corporation today announced that it has completed the sale of its Builders Square home improvement chain to Leonard Green & Partners.

As previously announced, the transaction will create the nation’s third-largest home improvement chain by combining Kmart's Builders Square and Hechinger Company under the ownership of Leonard Green & Partners, LP. Earlier today, shareholders of Hechinger approved the combination.

"We are delighted to have closed this transaction," said Marvin P. Rich, Executive Vice President, Strategic Planning, Finance, and Administration. "The inclusion of Builders Square in a large, financially stronger home improvement business that can compete effectively nationwide is an important milestone for Kmart shareholders as well as Builders Square associates and vendors."

Kmart Corporation serves America with 2,122 Kmart and Super Kmart Center retail outlets. In addition to serving all 50 states, Kmart operations extend to Puerto Rico, the U.S. Virgin Islands and Guam.

Hechinger Company operated 117 home improvement stores, primarily in the Midwest and on the East Coast.

Leonard Green & Partners, L.P. is a Los Angeles-based private merchant banking firm specializing in organizing, structuring, and sponsoring management buyouts of established companies. Leonard Green & Partners, L.P. currently has in excess of $500 million of private equity capital under management.