Contact
John McDonald
Vice President & Treasurer

Juli Musch
Divisional Vice President
Investor Relations
(248) 463-1040

KMART CORP REPORTS 1.0% SAME-STORE SALES INCREASE FOR MARCH

Troy, Michigan, April 12, 2001 -- Kmart Corporation (NYSE: KM) reported today that for the five-week period ended April 4, 2001 net sales increased 1.0% on a same-store basis. For the nine-week period ended April 4, 2001, net sales increased 1.9% on a same-store basis.

''For the fifth consecutive month, we have met or exceeded our sales expectations. This was accomplished while reducing advertising for the month in comparison to our historical trend and also facing adverse weather conditions throughout the country that affected our seasonally-sensitive businesses,'' said Chuck Conaway, Chairman and CEO of Kmart. ''We continue to grow same-store sales as we make consistent progress in our three strategic imperatives. Our in-stock position and customer satisfaction metric, which measures customers who rate their overall shopping experience as excellent, have both reached an all-time high, indicating significant improvement in our execution. We are now growing in an intelligent, consistent and healthy manner.''

''On April 2^nd, we unveiled our first new marketing initiative across the chain by launching the BlueLight Special,'' continued Conaway. ''The BlueLight Special is designed to reward our customers and ultimately drive frequency and loyalty to Kmart. It creates excitement in our stores by featuring different nationally recognized brands every single day at incredible values. We are excited to bring back this great American icon, exclusive to Kmart, and have already seen early indications of our customers' enthusiasm to this program.''

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. 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.