Sears July Comps Decline 2.6%

Sears, Roebuck and Co. comparable domestic store revenues decreased 2.6 percent for the four weeks ended July 31, 2004. Total domestic store revenues were $1.84 billion for the four-week period in July 2004, down 4.0 percent compared with the four weeks ended August 2, 2003.

“July comparable store sales tracked in line with expectations,” said Sears Chairman and CEO Alan J. Lacy. “Revenues in our home group were essentially flat, while sales declined in apparel and Sears auto centers.”

Sears' specialty store revenues were down in the low-single digit range. Off-mall format sales increases were reported by Orchard Supply Hardware and Dealer Stores.

   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
                        July 31,          August 2,       All      Comp
                          2004               2003       Stores   Stores**

   July              $1,842,000,000     $1,918,800,000   -4.0%     -2.6%
   Year-to-Date*    $12,520,500,000    $12,909,100,000   -3.0%     -1.8%