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KMART CORPORATION REPORTS FLAT SALES FOR OCTOBER 2000

TROY, Michigan, November 2, 2000 -- Kmart Corporation (NYSE: KM) reports for the four-week period ended October 25, 2000 net sales of $2.478 billion, essentially unchanged compared to $2.479 billoin for the same period prior year. Net sales decreased 1.2% on a same-store basis. Excluding the impact of store closings and inventory liquidation, same-store sales decreased 2.0% for the period.

Net sales for the 13 weeks ended October 25, 2000 were $8.199 billion, up 3.0% from $7.962 billion the same period in 1999. On a same-store basis, net sales rose 1.4%.

Net sales for the 39 weeks ended October 25, 2000 were $25.392 billion, up 2.3% from $24.820 billion the same period last year. On a same-store basis, net sales rose 0.7%.

''October sales were effected by our continual primary focus of dramatically improving our working capital productivity through reducing inventory levels. Regular sales were cannibalized by the significant volume of clearance merchandise,'' said Chuck Conaway, Chairman and CEO of Kmart. ''As we reach more competitive levels of working capital, we will be removing a major barrier in achieving our strategic imperative of world-class execution.''

Kmart Corporation serves America with 2,163 Kmart retail outlets. Kmart Corporation common stock is listed on the New York, Pacific and Chicago Stock Exchanges.