Kmart Files Audited First Quarter Financial Statements on Form 8-K

Kmart Holding Corporation (NASDAQ: KMRT) today filed with the Securities and Exchange Commission (SEC) on Form 8-K the Company's interim financial statements for the 13-week period ended April 30, 2003, audited by its independent accountants.

These interim audited financial statements reflect the impact of "fresh start" accounting upon the emergence of Kmart Corporation from Chapter 11 protection. At the request of the Audit Committee of the Board of Directors, the Company's quarterly financial statements, previously filed with the SEC on June 16, 2003, were audited by the Company's independent accountants.

The Company also filed today with the SEC on Form 10-Q/A, an amendment to its previously filed Form 10-Q, filed on June 16, 2003.

In an explanatory note included in the filing, the company said the purpose of the amendment is to update the unaudited financial statements filed June 16, 2003, to reclassify certain losses from discontinued operations to continuing operations.

The Company, together with its subsidiaries, is a mass merchandising company that offers customers quality products through a portfolio of exclusive brands that include DISNEY, JACLYN SMITH, JOE BOXER, KATHY IRELAND, MARTHA STEWART EVERYDAY, ROUTE 66, SESAME STREET, and THALIA SODI. It operates more than 1,500 stores in 49 states and is one of the 10 largest employers in the country with 170,000 associates. For more information visit the Company's website at .

Cautionary Statement Regarding Forward-Looking Information and Other Matters

Statements made by 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 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 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; marketplace demand for the products of Kmart's key brand partners as well as the engagement of appropriate new brand partners; increasing competition from other retailers; Kmart's ability to operate pursuant to its exit financing facility; Kmart's ability to obtain and maintain normal terms with its vendors, attract and retain customers, obtain and maintain appropriate inventory, implement its business plan and strategies, 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

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