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Kmart Corporation Names New Treasurer

Kmart Corporation (NYSE: KM) today announced that John T. McDonald, Jr., 35, will join the company as its new Vice President and Treasurer, effective Sept. 6, 2000. McDonald fills the post previously held by Michael Viola and will report directly to Kmart Executive Vice President and Chief Financial Officer Martin E. Welch. As Treasurer, McDonald will be responsible for the company's banking relationships, public liability and investor relations functions.

McDonald joins Kmart from Familymeds, Inc. where he served as Chief Financial Officer and Treasurer. He also has served as Treasurer for CVS Corporation and has held several senior-level financial and accounting positions with Hook SupeRx, Inc., Siebe Incorporated and KMPG Peat Marwick. A graduate of Ohio Wesleyan University, McDonald holds a Bachelor of Arts in Accounting.

"John McDonald has a well-seasoned understanding of all aspects of the treasury function and a solid reputation among the banking and financial community," said Welch.

Kmart Corporation serves America with 2,164 Kmart, Big Kmart and Super Kmart retail outlets. In addition to serving all 50 states, Kmart operations extend to Puerto Rico, Guam and the U.S. Virgin Islands. More information about Kmart is available on the World Wide Web at under the "About Kmart" section.

SOURCE: Kmart Corporation

Contact: Mary Lorencz, Director, Corporate Media Relations of Kmart
Corporation, 248-463-1021

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