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Sears Board Authorizes $3.0 Billion for Repurchase of Common Shares

The board of directors of Sears, Roebuck and Co. (NYSE: S) today authorized $3.0 billion for repurchase of the company's common shares. This authorization, combined with the company's existing share repurchase program, positions Sears to execute its plan to return a portion of the proceeds from the sale of its Credit and Financial Products business to its shareholders. The expiration date for the $3.0 billion share repurchase program is Dec. 31, 2006.

The shares will be purchased in the open market, through self-tender offers or privately negotiated transactions. Timing will depend on prevailing market conditions, alternative uses of capital and other factors.

About Sears

Sears, Roebuck and Co. is a broadline retailer with significant service and credit businesses. In 2002, the company's revenue was $41.4 billion. The company offers its wide range of apparel, home and automotive products and services to families in the U.S. through Sears stores nationwide, including approximately 870 full-line stores. Sears also offers a variety of merchandise and services through its Web sites, sears.com and landsend.com, and a variety of specialty catalogs.

Forward-Looking Statements

This press release contains forward-looking statements that involve risks and uncertainties that may cause actual results to differ materially, such as prevailing market conditions, alternative uses of capital, operating and cash flow results and other factors. The company intends its forward-looking statements to speak only as of the time of such statements, and does not undertake to update or revise them as more information becomes available.

SOURCE: Sears, Roebuck and Co.

CONTACT: Media, Edgar P. McDougal, +1-847-286-9669, or Investors,
Pam White, +1-847-286-1468, both of Sears, Roebuck and Co.

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