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Sears Holdings (NASDAQ: SHLD) announced today that the company has signed a long-term lease with Forever 21 to occupy approximately 43,000 square feet of its highly successful retail store property at South Coast Plaza in Costa Mesa, Calif. The remaining space at Sears' store at South Coast Plaza will continue to offer its full assortment of products and services, with an improved layout to accommodate Forever 21's larger store concept XXI Forever as its new neighbor.

"Sears Holdings is very excited to welcome Forever 21 to our property at South Coast Plaza," said Alan Shaw, vice president, Leasing and Development for Sears Holdings. "Forever 21 is a world-class retailer and will provide energy and excitement to the northwest quadrant of South Coast Plaza, benefitting all the retailers in this area of the shopping center, including Sears. They will be a wonderful tenant and are an ideal fit for this store location."

Larry Meyer, Forever 21's executive vice president said, "We are pleased with the opportunity to serve the customers of the greater Costa Mesa area with our new XXI flagship store at South Coast Plaza. The proximity to Bristol Street and convenient customer parking make the Sears location one of the best locations at South Coast Plaza and we are thrilled we have been able to reach this agreement with Sears Holdings' real estate team."

Debra Gunn Downing, executive director, marketing for South Coast Plaza commented, "South Coast Plaza is an international shopping destination and is proud to offer the best brands from around the world. Forever 21 is an incredible brand and a perfect addition to South Coast Plaza's collection of the best of the best in retail."

At the Sears owned property at South Coast Plaza, XXI Forever will lease a small portion of the upper level and a portion of the lower level space. The XXI Forever store will feature an entrance facing Bristol Street and a dedicated entry into the center on the lower level. The store is expected to open in the spring of 2011.

"This agreement is a great example of Sears Holdings selectively redeploying its asset base to improve the retail experience for consumers while working to create long-term shareholder value," said Jeff Stollenwerck, president, Real Estate for Sears Holdings.

For information on additional opportunities at other Sears Holdings' retail locations interested parties can visit www.shcrealty.com.

About Sears Holdings Corporation

Sears Holdings Corporation is the nation's fourth largest broadline retailer with approximately 3,900 full-line and specialty retail stores in the United States and Canada. Sears Holdings is the leading home appliance retailer as well as a leader in tools, lawn and garden, home electronics and automotive repair and maintenance. Sears Holdings is the 2010 ENERGY STAR庐 Retail Partner of the Year. Key proprietary brands include Kenmore, Craftsman and DieHard, and a broad apparel offering, including such well-known labels as Lands' End, Jaclyn Smith and Joe Boxer, as well as the Apostrophe and Covington brands. It also has the Country Living collection, which is offered by Sears and Kmart. We are the nation's largest provider of home services, with more than 12 million service calls made annually. Sears Holdings Corporation operates through its subsidiaries, including Sears, Roebuck and Co. and Kmart Corporation. For more information, visit Sears Holdings' website at www.searsholdings.com.

About Forever 21/XXI Forever

Forever 21, Inc., headquartered in Los Angeles, is a specialty retailer of women's, men's and children's clothing and accessories, known for offering the hottest and most current fashion trends at a great value to consumers. Forever 21's model of fast fashion works by keeping the store exciting with fresh merchandise offerings brought in daily. The retailer operates over 480 stores in the United States and Puerto Rico, with international operations in Canada, Korea and Japan. For more information please visit www.forever21.com.

About South Coast Plaza

South Coast Plaza is the crown jewel of shopping on the West Coast, and is recognized internationally for its unparalleled collection of over 250 boutiques, award-winning restaurants, spas and the adjacent world-renowned Segerstrom Center for the Arts. Its stellar cast of diverse retailers -- from Oscar de la Renta, Balenciaga, Hermes and Harry Winston to Tory Burch, Barneys New York CO-OP, J. Crew, H&M and more -- makes it Southern California's premier shopping experience. South Coast Plaza is located in Orange County, California, in the city of Costa Mesa. For more information, visit www.southcoastplaza.com or telephone (800) 782-8888.

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SOURCE: Sears Holdings Corporation

CONTACT: Sears Holdings Public Relations, +1-847-286-6093

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