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Kmart Corporation (NYSE: KM) today named Don Coleman Advertising as its multicultural agency of record, expanding its African-American advertising and marketing support to include Kmart's Hispanic promotions.

"Don Coleman Advertising has provided excellent advertising and marketing support for Kmart since 1997," said Larry Davis, Kmart Senior Vice President, Advertising and Marketing. "We are pleased to expand our relationship with Don Coleman Advertising as we continue to develop strategic, niche marketing and advertising programs for our customers."

"Kmart has demonstrated a genuine commitment to establishing a retail leadership position in reaching the growing multicultural consumer market, with over $1 trillion in buying power," said Don Coleman, President and CEO of Don Coleman Advertising, Inc. "Kmart's decision to appoint one agency to oversee its multicultural marketing efforts will provide cost-efficiencies and integration of messages."

Headquartered in Southfield, Mich., Don Coleman Advertising was named the No. 1 multicultural agency in the United States by Advertising Age Magazine for two consecutive years providing full marketing services including research, strategic planning, advertising, promotions, public and press relations, media and special events.

Kmart Corporation is a near-$40 billion company that serves America with more than 2,100 Kmart and Kmart supercenter retail outlets. Kmart donates $35 million each year to support its hometowns and local non-profit organizations. Kmart associates also provide their most valuable resource -- time -- everyday in their local communities. In addition to serving all 50 states, Kmart operations extend to the Caribbean Islands and Asia Pacific. More information about Kmart is available on the World Wide Web at under the "About Kmart" section.

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SOURCE: Kmart Corporation

Contact: Susan Dennis of Kmart Media Relations, 248-463-1021; or Michele
Edwards of Don Coleman Advertising, 248-223-8953

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