Kmart Corporation announced that Harold W. Lueken will join the Company as Senior Vice President and General Counsel, effective May 12, 2003. Reporting to President and CEO Julian C. Day, Lueken, 41, will be responsible for the Company’s Legal and Human Resources departments.

Commenting on the appointment, Day said, “Harold Lueken is an accomplished corporate attorney who is ideal to direct Kmart’s legal and human resources functions as the Company emerges from Chapter 11. Harold’s expertise in governance, legal and employee-related matters, combined with his experience with financial institutions, will make him a great asset as we set forth in running the new Company with its new Board of Directors.”

Lueken joins Kmart from Banc of America Securities where he served as Managing Director and General Counsel to Corporate Investment Banking. Prior to Banc of America, he served as Principal and General Counsel to Real Estate Businesses with the investment firm Morgan Stanley Dean Witter & Co.

With Lueken’s appointment, Michael T. Macik will be retiring from Kmart after 32 years. Macik initially retired in November 2000 and rejoined Kmart in April 2002 to assist in the Company’s reorganization.

Day said: “Mike Macik has been a valued contributor to our efforts to restructure Kmart. His extensive experience in the area of human resources management and his lengthy tenure with the Company were critical to the success of our operational reorganization and corporate right-sizing. Mike has achieved his and the Company’s objectives and we thank him for his contribution and wish him well in his retirement.”