February 01, 2000

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

KMART LAUNCHES KMART STOCK DIRECT, A NEW DIRECT STOCK PURCHASE PLAN ON BLUELIGHT.COM
StockPower links Kmart to customers and investors

TROY, Mich., February 1, 2000 -- Kmart Corporation [NYSE: KM], the country's second-largest discount retailer, has teamed with StockPower Inc., an online direct investing and loyalty marketing company, to offer shares of Kmart common stock on www.bluelight.com, the web site of Kmart's recently-launched e-commerce company, BlueLight.com. Beginning February 1, 2000, individuals can enroll in Kmart Stock Direct, a new direct stock purchase plan, at www.bluelight.com. Kmart Stock Direct is administered by EquiServe L.P., the transfer agent for Kmart common stock.

Kmart's online program will provide investors with an easy, convenient and cost-effective way to invest in Kmart common stock directly. Potential investors can research plan details, enroll in a matter of minutes and begin investing immediately. Through this automated system, Kmart can offer value-added services, such as automatic monthly stock purchases, and can distribute customized e-mails containing stockholder communications, as well as information on special Kmart promotions and sales.

"By using StockPower's technology to provide our Kmart Stock Direct on www.bluelight.com, Kmart can offer customers and current and potential shareholders tremendous advantages in convenience and efficiency," said Bob Burton, Divisional Vice President, Investor Relations at Kmart. "We are delighted to be one of the first companies to implement this kind of innovative service."

A primary benefit to Kmart is the opportunity to convert some of the 180 million Kmart customers into investors, which StockPower believes will increase their spending, loyalty and lifetime value to Kmart.

"We're thrilled to team up with one of the nation's premier retailers to bring its direct stock purchase process online," said Dean Frost, President and Chief Executive Officer of StockPower. "Clearly, Kmart understands the value of connecting directly with its investors and customers and realizes that the Internet is the most effective means-from both a cost and time perspective-to achieve that goal."

Kmart Stock Direct can be accessed online in the About Kmart section of www.bluelight.com or at www.stockpower.com. New investors can obtain enrollment materials by calling 1-800-947-8019. Additional information on the Program can be obtained at 1-800-336-6981.

About Kmart Corporation

Kmart Corporation serves America with 2,177 Kmart retail outlets. Kmart Corporation common stock is listed on the New York, Pacific and Chicago Stock Exchanges.

BlueLight.com, formed in 1999 by Kmart Corporation and SOFTBANK Venture Capital, is the first integrated e-commerce company serving Kmart's vast customer base. BlueLight.com offers discount online shopping, free Internet access nationwide and personalized portal and messaging pages through partnerships with Spinway.com and Yahoo! [NSDG:YHOO].

About StockPower Inc.

StockPower Inc. pioneered the field of online Direct Stock Purchase Plans (DSPPs) and affinity marketing to shareholders. StockPower is the only company that can quickly and easily turn a corporate web site into a powerful online direct investing engine. Using our proprietary technology and affinity marketing expertise, we help corporate clients turn their customers into investors, significantly increasing their spending, loyalty and lifetime value.

StockPower is based in San Francisco and has additional offices in Houston, Greenwich, and Annapolis. StockPower clients include: The Home Depot, Tandy Corporation/Radio Shack, Kmart, Duke Weeks, BP Amoco and Old Kent. More information about StockPower is available at www.stockpower.com or by calling toll-free at 877-430-7518.

EquiServe L.P. is the largest provider of corporate shareholder services in the United States and administers more direct stock purchase plans than any other stock transfer agent.



Contact Information:
Robert M. Burton   Julie Tilton
Kmart Corporation   StockPower Inc.
Divisional Vice President, Investor Relations   Sr. Manager, Communications
Phone: (248) 643-1040   Phone: (415) 743-4878
Mia S. Bennett   Steve Gottlieb
Kmart Corporation   FitzGerald Communications
Financial Analyst, Investor Relations   Phone: (415) 986-9500
Phone: (248) 643-1040   Email: sgottlieb@fitzgerald.com