Sears August Comps Fall 7.1%

Sears, Roebuck and Co. comparable domestic store revenues
decreased 6.1% for the four weeks ended August 28, 2004. Total domestic store revenues were $1.91 billion for the four-week period in August 2004, down 7.1% compared with the four weeks ended August 30, 2003.

“We anticipated August would be a tough comparison for Sears from 2003, in
part because of the absence of tax refunds this year, and the strong
performance of our home appliance and lawn and garden businesses at this time
last year,” said Sears Chairman and CEO Alan J. Lacy. “While we experienced
softer than expected back-to-school sales, we continue to look forward to the
fall and holiday seasons as our teams improve the customer experience in our
stores and enhance our merchandise offerings.”

While the overall specialty store category reported comparable store sales
decreases, Orchard Supply Hardware and The Great Indoors reported sales
increases.

     Sears, Roebuck and Co.
     Domestic Store Revenues & Comparable Store Revenues
     (*According to National Retail Federation Fiscal Calendar.)
     (**A store is considered to be comparable at the beginning of the 13th
     month after the store is opened.)

                           Fiscal Period Ending            Percent Change
                        August 28,       August 30,         All      Comp
                          2004              2003           Stores   Stores**
     August          $1,910,200,000    $2,056,900,000      -7.1%    -6.1%
     Year-to-Date*  $14,430,700,000   $14,966,000,000      -3.6%    -2.4%