Kmart Objects to Millions in Excessive Trumbull Copying Charges

Kmart Holding Corporation (NASDAQ: KMRT) has objected to the excessive charges billed by The Trumbull Group, LLC for copying during its bankruptcy, in which Trumbull served in a court-ordered capacity as an arm of the Bankruptcy Court Clerk's office. Trumbull billed Kmart in excess of $23 million for copying and mailing costs and other miscellaneous services, of which Kmart has paid over $16 million. Kmart objected to approximately $6.6 million of Trumbull's bills because of the exorbitant mark-up that Trumbull charged where third parties were used by Trumbull for copying Kmart's jobs. In those outsourced situations, Trumbull charged Kmart 25 cents per page for high-volume runs that Kmart was able to obtain after its emergence from bankruptcy for 1 cent per page. The $23 million in billings by Trumbull in a little more than one year is yet another example of the excessive fees charged to Kmart during its bankruptcy.

Notwithstanding the terms of the agreement retaining Trumbull, Trumbull failed to provide Kmart and other parties to the bankruptcy with timely bills. Upon receiving the requested support for its bills from Trumbull, Kmart immediately objected. In fact, Kmart had been in good faith discussions with Trumbull when they unexpectedly commenced this action.

Kmart is current on all bills from Trumbull, including bills subsequent to emergence, other than those relating to the disputed amounts.

About Kmart Holding Corporation

Kmart Holding Corporation (NASDAQ: KMRT) and its subsidiaries (together, "Kmart") is a mass merchandising company that offers customers quality products through a portfolio of exclusive brands that include THALIA SODI, JACLYN SMITH, JOE BOXER, KATHY IRELAND, MARTHA STEWART EVERYDAY, ROUTE 66 and SESAME STREET. Kmart operates more than 1,500 stores in 49 states and is one of the largest employers in the country with approximately 158,000 associates. For more information visit the Company's website at www.kmart.com .

SOURCE: Kmart Holding Corporation

CONTACT: Kmart Media Relations, +1-248-463-1021

Web site: http://www.kmart.com/