Kmart and March of Dimes Kick Off 2004 Campaign

Kmart Celebrates Number One Team Fundraiser Position in the Nation in the Fight to End Prematurity; Launches “Steppin' Into Spring” Promotion

TROY, MICH., MARCH 17, 2004 – Kmart and the March of Dimes officially kicked off Kmart's 20th year of supporting the March of Dimes largest fundraising event, WalkAmerica, today at the company's headquarters.  Julian C. Day, Kmart President and Chief Executive Officer, and Dr. Jennifer L. Howse, President of the March of Dimes, celebrated the event by unveiling a banner at the Kmart Resource Center here.  The banner will be displayed in Kmart's lobby acknowledging Kmart as the Number One WalkAmerica Team in the nation for raising more than $3.5 million in 2003.   The company has raised $39 million in its two decades with the March of Dimes. 

“At Kmart we hope that every baby is born healthy,” said Mr. Day.  “That is why Kmart is proud to support March of Dimes WalkAmerica in helping our customers and associates get the information they need to have healthy babies.”

As part of the company's 2004 national paper sneaker promotion fundraising event, stores across the country will sell March of Dimes paper sneakers for $1 each to Kmart customers from now until Mother's Day, May 9.  The blue, white, and red paper sneakers, symbolic of the real ones that thousands of people lace up for WalkAmerica, are available for customers to purchase at any register. 

In addition, Kmart customers will have the opportunity to win for themselves and for the March of Dimes in the Kmart “Steppin' Into Spring” instant win game. Starting March 21, Kmart customers can pick up a special “Steppin' Into Spring” paper sneaker and have it scanned at any register to see if they are one of the 25 winners who will receive a $1,000 Kmart gift card and a $1,000 donation by Kmart to the local March of Dimes chapter on their behalf.  “Steppin' Into Spring” runs through April 3, 2004, or while game sneakers last.

Kmart associates will also be participating in their local WalkAmerica events nationwide and many will host special fund-raising events, such as bake sales, at their stores.

“We are so very grateful to Kmart associates and their customers for making a tremendous effort on behalf of mothers and babies,” said Dr. Howse of the March of Dimes.  “We know that Kmart greatly values its community efforts and its connection to families.  The funds raised by its associates and customers will help more babies be born healthy.”

WalkAmerica, which will celebrate its 34th anniversary in April, is the nation's oldest walking event, supporting the March of Dimes goal to save more babies from being born prematurely.  Prematurity is a serious and growing problem that is now the leading cause of death for newborns.  More than 470,000 infants are born prematurely in the United States each year.

Kmart Holding Corporation (NASDAQ: KMRT) and its subsidiaries (together “Kmart”) is a mass merchandising company that offers customers quality products through a portfolio of exclusive brands that include Disney, Jaclyn Smith, Joe Boxer, Kathy Ireland, Martha Stewart Everyday, Route 66, Sesame Street, and Thalia Sodi.  Kmart operates more than 1,500 stores in 49 states and is one of the 10 largest employers in the country with 170,000 associates.  For more information, visit Kmart's website at www.kmart.com.