Kmart Selects TBWA/Chiat/Day as New Corporate Advertising Agency of Record

Kmart Corporation (NYSE: KM) today announced the selection of TBWA/Chiat/Day as its new corporate advertising agency of record. The working relationship will commence immediately so that Kmart's new advertising and marketing campaigns can launch during the First Quarter of 2001.

Commenting on the selection, Kmart Chairman and CEO, Chuck Conaway said: "The Chiat/Day team will be a strategic partner as we change and reposition Kmart. Their insight, creativity and passion will help us deliver a world- class advertising and marketing program that is fully integrated and broad in scope -- ranging from television and print to enhancing the in-store experience we offer shoppers. Together, we will build a powerful, consistent and complete communication plan that leverages the Kmart brand, drives sales and strives to create a sustainable emotional bond with our customers."

"With decisive new leadership and a strong sense of purpose throughout the organization, Kmart is an American institution with unrealized potential. All of this combined simply made the new Kmart marketing initiative something we had to be part of," said Carl Johnson, President and CEO, TBWA/Chiat/Day.

Terms of the new relationship are being finalized. Campbell Mithun Esty will continue to service the Kmart account through the upcoming holiday season.

Kmart Corporation serves America with 2,164 Kmart, Big Kmart and Super Kmart retail outlets. In addition to serving all 50 states, Kmart operations extend to Puerto Rico, Guam and the U.S. Virgin Islands. More information about Kmart is available on the World Wide Web at http://www.bluelight.com/ in the "About Kmart" section.

SOURCE: Kmart Corporation

Contact: Mary Lorencz of Kmart Media Relations, 248-643-1021; or Carl
Johnson of TBWA/Chiat/Day, 212-804-1044

Website: http://www.bluelight.com/