Kmart Announces Three New Executive Appointments Focused on Customer Service

Kmart Holding Corporation (NASDAQ: KMRT) announced today the appointment of Robert Norton as Senior Vice President, Stores, Dene Rogers as Senior Vice President, Store Operations, and David Whipple as Senior Vice President, Associate Resources.

Julian Day, Kmart's Chief Executive Officer said, "I have asked these three talented executives to focus their considerable abilities on improving the customer service in our stores. The goal is to deliver a better store experience for our customers while continuing to enhance the profitability of our operations."

Robert Norton, SVP, Stores, will have overall responsibility for Kmart's stores, including the field and headquarters' store support organizations. Prior to joining Kmart, Norton served as the Chairman and CEO of FTD Inc. Norton joined FTD as President and CEO in January 1997. Under his strong and owner-oriented leadership, the company more than doubled its profitability and sales. Before leading FTD, Norton held senior positions at Jo-Ann Stores, Inc. and The Sherwin-Williams Company.

Dene Rogers, SVP, Store Operations, will have responsibility for the store support organization at headquarters and will drive multi-functional operational improvement initiatives across the store base. Rogers, who will report to Norton, has worked in a variety of capacities at Kmart since joining in October 2003. Before joining Kmart, Rogers was SVP, Business Development at General Electric Capital Corporation, and SVP, Planning, New Products and Development at Starwood Hotels & Resorts Worldwide, Inc.

David Whipple, SVP, Associate Resources, is now the senior human resource executive at the Company, whose immediate focus is developing Kmart's store associate population. Whipple joins Kmart after nine years at two U.S. subsidiaries of Netherlands-based Ahold, the world's third-largest food retailer. He served in several executive human resource positions at U.S. Foodservice and at Tops Markets, Inc.

Julian Day stated, "We will continue to improve our customer experience and attract, retain, and develop the best associates and store managers in mass market retail. Together, these executives bring a wealth of retail experience, and more importantly, a winning culture and attitude to our Company. With these additions to our leadership team, we expect to accelerate our rate of improvement and elevate our achievement goals"

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. For more information visit the Company's website at http://www.kmart.com/ .

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Statements or reports made by or on behalf of Kmart which address activities, events or developments that we expect or anticipate may occur in the future are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that reflect, when made, Kmart's current views with respect to current events and financial performance. Such forward-looking statements are based upon assumptions concerning future conditions that may ultimately prove to be inaccurate and involve risks, uncertainties and factors that could cause actual results to differ materially from any anticipated future results, express or implied, by such forward- looking statements. Factors that could cause actual results to differ materially from these forward-looking statements include, but are not limited to, factors relating to Kmart's internal operations and the external environment in which it operates; Kmart's ability to successfully implement business strategies and otherwise fund and execute planned changes in various aspects of the business; marketplace demand for the products of Kmart's key brand partners, as well as the engagement of appropriate new brand partners; changes in consumer spending and Kmart's ability to anticipate buying patterns and implement appropriate inventory strategies; Kmart's ability to reverse its negative same-store sales trend; competitive pressures and other third party actions, including pressures from pricing and other promotional activities of competitors, as well as new competitive store openings; the resolution of allowed claims for which Kmart is obligated to pay cash under the Plan of Reorganization; Kmart's ability to properly monitor its inventory needs in order to timely acquire desired goods in appropriate quantities and/or fulfill labor needs at planned costs; Kmart's ability to attract and retain customers; Kmart's ability to maintain normal terms with vendors and service providers; Kmart's ability to maintain contracts, including leases, that are critical to its operations; Kmart's ability to develop a market niche; regulatory and legal developments; general economic conditions; weather conditions, including those which affect buying patterns of Kmart's customers; other factors affecting business beyond Kmart's control; Kmart's ability to attract, motivate and/or retain key executives and associates; and other risks detailed in Kmart's Securities and Exchange Commission filings. Kmart undertakes no obligation to release publicly the results of any revisions to these forward- looking statements to reflect events or circumstances after the date such statements were made.

SOURCE: Kmart Holding Corporation

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

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