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FOR IMMEDIATE RELEASE

KMART CORPORATION REPORTS SAME STORE SALES INCREASED 3.4% FOR JULY

Troy, Michigan, August 9, 2001 -- Kmart Corporation (NYSE: KM) today reported that for the four-week period ended August 1, 2001 net sales icreased 3.4% on a same-store basis. Total net sales were $2.540 billion, an increase of 2.0% from $2.490 billion for the same period last year.

Net sales for the thirteen-week period ended August 1, 2001 increased 1.0% on a same-store basis. Total net sales were $8.917 billion, down slightly from $8.939 billion for the same period last year.

Net sales for the twenty-six-week period ended August 1, 2001 increased 1.3% on a same-store basis. Total net sales were $17.255 billion, down slightly from $17.277 billion for the same period last year.

''We are extremely pleased with our results for the month of July, particularly given the disruption in 40% of our stores due to resets and the price deflation related to our BlueLight Always program. During the month, we continued the implementation of our strategic alliance with Fleming, who is now serving our entire store base for food and consumables,'' said Chuck Conaway, Chairman and CEO of Kmart Corporation. ''We are driving customer traffic and conversion through the success of our BlueLight Always program. We have permanently lowered prices on nearly 20,000 high-frequency items, meeting our customers' needs by providing stronger values, improved store execution and better customer service.''

					Change
($ Millions)	08-01-01		08-02-00		All Stores	Same-Store
Total Kmart	$2,540		$2,490		2.0%	3.4%

					Change
($ Millions)	08-01-01		08-02-00		All Stores	Same-Store
Total Kmart	$8,917		$8,939		(0.2%)	1.0%

					Change
($ Millions)	08-01-01		08-02-00		All Stores	Same-Store
Total Kmart	$17,255		$17,277		(0.1%)	1.3%
# of Store Locations	2,113		2,165		(2.4%)

Kmart Corporation will hold a conference call on Thursday, August 23, 2001 at 9:00 a.m. eastern standard time to discuss its second quarter financial results. The telephone number for individuals interested in listening to the call is (913) 981-5591 with the password number 799218. Callers are requested to dial in at least 15 minutes prior to the scheduled start time. A replay of the conference call will be available until August 30, 2001 at 8:00 p.m. eastern standard time. The dial in number for the replay is (719) 457-0820 with the confirmation code 799218. The call will also be simulcast at www.kmart.com/corp/investor/general/conference.

Cautionary Statement Regarding Forward-looking Information
Statements, other than those based on historical facts, which address activities, events, or developments that the Company expects or anticipates may occur in the future are forward-looking statements which are based upon a number of assumptions concerning further conditions that may ultimately prove to be inaccurate. Actual events and results may materially differ from anticipated results described in any forward-looking statements. The Company's ability to achieve such results is subject to certain risks and uncertainties, including, but not limited to, economic and weather conditions which affect buying patterns of the Company's customers, changes in consumer spending and the Company's ability to anticipate buying patterns and implement appropriate inventory strategies, continued availability of capital and financing, competitive factors, and other factors affecting business beyond the Company's control. Consequently, all of the forward-looking statements are qualified by these cautionary statements and there can be no assurance that the results or developments anticipated by the Company will be realized or that they will have the expected effects on the Company or its business or operations.

Kmart Corporation is a near-$40 billion company that serves America with more than 2,100 Kmart and Kmart Supercenter retail outlets and through its www.bluelight.com internet portal. Kmart donates $35 million each year to support its hometowns and local non-profit organizations. Kmart associates also provide their most valuable resource - time - everyday in their local communities. In addition to serving all 50 states, Kmart operations extend to the Caribbean Islands and Asia Pacific. More information about Kmart is available on the World Wide Web at www.bluelight.com under the "About Kmart" section.