TROY, Mich., May 28, 2003 -- Kmart Management Corporation today announced that Ed Barclay has been appointed Vice President of Asset Protection effective immediately. He will report to Julian C. Day, President and Chief Executive Officer.

Barclay will be responsible for all aspects of asset protection for Kmart’s store base, distribution centers and headquarters facilities.

Day said: “In order to maximize the value for this company, it is absolutely critical that we do all we can to protect our assets. Additionally, we must take every step necessary to ensure the safety of our customers and our associates. From negotiating insurance to controlling loss, a priority for Kmart, this position has tremendous responsibility. We are very fortunate to have Ed Barclay join our management team. He has a proven track record for reductions in both inventory loss and total risk expense with a number of the nation’s largest retailers.”

At Kmart, Barclay will have responsibility for all aspects of risk management including loss prevention, food safety, corporate safety, check recovery services, investigations, and asset protection training and information.

Barclay was formerly Vice President - Asset Protection at Sears, Roebuck and Co. from 1993 to 2002; and held other loss prevention and internal audit positions at Saks Fifth Avenue, Furr’s Supermarkets and Montgomery Ward.

Barclay attended Texas Tech University in Lubbock, Texas, and served on the National Retail Federation’s Loss Prevention Board and Advisory Council.

Kmart 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 OTC Bulletin Board under the symbol KMRT.