Kmart Holding Corporation has announced that John D. Goodman will join the Company as Senior Vice President, Chief Apparel Officer, and James D. Donlon III will
join the Company as Senior Vice President, Chief Financial Officer, both reporting to President and Chief Executive Officer Julian C. Day.

“The hiring of these two experienced and successful executives continues
to strengthen our senior management team,” Day said. “We have been patient in
this process, waiting to hire the very best individuals with an appetite for
tackling the challenges and opportunities before us.”

Goodman joins Kmart after 11 years at Gap Inc., a leading international
specialty retailer operating 3,075 store locations with reported 2002 sales of
$14.5 billion. At Gap Inc., Goodman served in various capacities, including,
most recently, Senior Vice President, Gap Inc. Outlet, Merchandising,
Planning, Production and Distribution. Prior to joining Gap Inc., Goodman
worked for Bloomingdale's, where he held the position of Buyer in several
areas of women's apparel.

“John brings with him a wealth of experience built on a strong foundation
first at Bloomingdale's and then at the Gap, one of the most innovative
apparel companies in the world,” Day said. “He is truly an outstanding
executive with a track record of success. His considerable experience and
success as an apparel merchant, coupled with the design talents that Chief
Creative Officer Lisa Schultz has brought to Kmart, will allow us to provide
our customers the fashion and value they want and deserve.”

Donlon joins Kmart from the DaimlerChrysler Corporation, where he was
Senior Vice President — Controller, and a member of the Chrysler Group
Executive Committee. In his 25 years there, Donlon played key roles in a
variety of critical senior management positions within the Finance
organization. In his most recent position, he was responsible for the finance
activities of Sales & Marketing, Procurement & Supply, Product Development,
Corporate Financial Activities, Manufacturing, Quality, Serviceability and
International Activities.

“We are excited to have Jim join Kmart because of his reputation for
excellent financial control, a hands-on management style, and an ability to
mentor the strong financial team that we already have at Kmart,” Day said.
“Jim has the experience and personal integrity to set the appropriate tone at
the top that we require from our senior management team. We are fortunate
that he was attracted to the entrepreneurial environment at Kmart.”