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Kmart Management Corporation today announced the promotions of Robert Atteberry and Joyce Dillon to Vice President and General Merchandise Manager, effective immediately. Additionally, Peter Whitsett, Divisional Vice President, Merchandising Food and Consumables, assumes responsibility for drugstore. Atteberry, Dillon and Whitsett will report to Bill Underwood, Kmart Executive Vice President, Sourcing & Global Operations.

Kmart President and CEO Julian Day said: "With Chapter 11 behind us, establishing the management team that will lead the Company into the future remains a top priority for me. Over the last several months, I have spent a great deal of time determining the leadership needs of the new Company and assessing the talent within the organization. Rob, Joyce and Peter bring an innovative discipline to the merchandising side of our business. I am pleased to have them be part of the team of decision-makers that will help reshape and differentiate Kmart."

Underwood added: "Rob, Joyce and Peter have exhibited the skills and dedication necessary to improving Kmart's merchandising efforts. We appreciate their contribution and look forward to having them utilize their leadership skills and experience to focus their teams on driving profitable sales growth and exceeding the expectations of our customers."

Atteberry previously served as Divisional Vice President, Merchandising - Hard and Soft Home. His new responsibilities include managing all merchandising functions for hard and soft home, do-it-yourself (DIY), horticulture, and outdoor living. Having joined Kmart in 1996 as a Planner, Atteberry holds a bachelor's of science degree in marketing and human resources from Miami University in Ohio.

Serving previously as Divisional Vice President Merchandising - Toys, Sporting Goods and Electronics, Dillon has held various positions of increasing responsibility at Kmart's corporate headquarters. Her new responsibilities include the oversight of all merchandising functions for electronics, toys, sporting goods, seasonal, celebration and car care. Having joined the Company in 1984 as a Kmart Assistant Store Manager in Philadelphia, Penn., Dillon holds a bachelor's of science degree in business administration from Shippensburg University in Shippensburg, Penn.

Named Divisional Vice President, Merchandising Food and Consumables earlier this year, Whitsett adds managing the drug store business to his list of responsibilities. Joining Kmart in 1999 as a Director, Planning and Replenishment, Drug Store Business Planning, Whitsett has had positions of increasing responsibility since that time. He has a bachelor's of science degree in marketing from California State University in Northridge, California.

Kmart is a mass merchandising company that serves America through its Kmart and Kmart SuperCenter retail outlets. Our common stock is currently quoted on the OTC Bulletin Board under the symbol KMRT.

SOURCE: Kmart Management Corporation

CONTACT: Abigail Jacobs, +1-415-315-4241, or Maria Seyrig,
+1-248-463-7801, both of Kmart Media Relations

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