Sears Holdings Brings Customers Closer to Hollywood With Instant Access to Movie and TV Downloads

Sears and Kmart announce plans to launch Alphaline Entertainment powered by RoxioNow™, a new digital service for customers seeking even faster access to the latest in home entertainment experiences. Through a multi-year agreement with Sonic Solutions® (NASDAQ: SNIC), the Alphaline Entertainment platform will offer Sears and Kmart customers on-demand entertainment via a range of internet-connected devices including HDTVs, Blu-ray Disc players, computers and handheld technologies.

When launched later this year, the Alphaline Entertainment service will allow customers instant access to purchase and rent thousands of their favorite movies and TV shows from the comfort of their couch. As a result, the digital version of many movies and TV shows will often be available for customers to view on the same day the DVD becomes available in stores.

"With so many movies and endless amounts of TV content available, Alphaline Entertainment ensures our customers will have the ability to obtain the latest, high-quality entertainment virtually anywhere, anytime," said Karen Austin, president of Home Electronics for Sears Holdings. "This platform will enable Sears and Kmart to further enhance the services we offer our customers with the added ability to provide exciting digital video entertainment."

The Alphaline Entertainment platform will also provide customers with the ability to share content among all consumer electronic devices that have a broadband connection.

"As customers continue to seek new digital services, they also want more flexibility and more universally accessible content," said Dave Habiger, president and CEO, Sonic Solutions. "Alphaline Entertainment powered by RoxioNow fulfills this desire by providing Sears and Kmart customers with a seamless solution to access more content from a wider array of devices."

Sears and Kmart will work with Sonic Solutions to embed the Alphaline Entertainment services on a variety of devices from many manufacturers, letting customers enjoy content while at home or on their mobile devices. RoxioNow will provide the content delivery infrastructure, software, and technologies to power the offering, which will appear on consumer electronics devices sold through Sears and Kmart.

For information on the Alphaline Entertainment service and the latest offerings from Sears and Kmart, visit www.AlphalineEntertainment.com.

About Sears Holdings Corporation

Sears Holdings Corporation (NASDAQ: SHLD) is the nation's fourth-largest broadline retailer with approximately 3,900 full-line and specialty retail stores in the United States and Canada. Sears Holdings is the leading home appliance retailer as well as a leader in tools, lawn and garden, home electronics and automotive repair and maintenance. Sears Holdings is the 2010 ENERGY STAR® Retail Partner of the Year. Key proprietary brands include Kenmore, Craftsman and DieHard, and a broad apparel offering, including such well-known labels as Lands' End, Jaclyn Smith and Joe Boxer, as well as the Apostrophe and Covington brands. It also has the Country Living collection, which is offered by Sears and Kmart. It is the nation's largest provider of home services, with more than 12 million service calls made annually. Sears Holdings Corporation operates through its subsidiaries, including Sears, Roebuck and Co. and Kmart Corporation.

About Sonic Solutions

Sonic Solutions® (NASDAQ: SNIC) is powering the digital media ecosystem through its complete range of Hollywood to Home™ applications, services, and technologies. Sonic's Roxio products enable consumers to easily manage and enjoy personal media and premium Hollywood entertainment on a broad range of connected devices. A wide array of leading technology firms, professionals, businesses, and developers rely on Sonic to bring innovative digital media functionality to next-generation devices and platforms. Sonic Solutions is headquartered in Marin County, California.

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SOURCE: Sears Holdings Corporation

CONTACT: Larry Costello of Sears Holdings, +1-847-286-9036,
larry.costello@searshc.com; or Rory Swikle of Euro RSCG Worldwide PR,
+1-847-286-8984, rory.swikle@eurorscg.com, for Sears Holdings

Web Site: http://www.searsholdings.com/
http://www.alphalineentertainment.com/