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Sears Holdings Establishes New Apparel Office in San Francisco

Thor Equities signs nation's fourth largest retailer to occupy 25,000 square feet in Market Street's historic Phelan Building

Sears Holdings announced today that the company has signed a long-term lease with Thor Equities to occupy 25,000 square feet in the historic Phelan Building, officially establishing a new San Francisco apparel office.

"We are thrilled that Sears has chosen San Francisco for its West Coast apparel office," said Mayor Gavin Newsom. "San Francisco offers leading retailers like Sears Holdings the perfect location to recruit and retain the creative talent that drives the apparel industry. Sears' decision not only brings new jobs and investment to the City, but also anchors Union Square with the offices of one of the largest retailers in the nation."

"Sears Holdings believes that by creating a presence in California, we will greatly enhance our ability to attract talent within one of the country's centers of excellence for the apparel industry. After an exhaustive search we know we have found the right location to meet the needs of our apparel business as we continue to grow and we are excited to be a part of the San Francisco Community. I also invite anyone who wants to be part of this unique opportunity and to be part of what we are building to apply," said John Goodman EVP, Apparel and Home, Sears Holdings.

Sears Holdings' West Coast apparel office will be located on the sixth floor at 760 Market Street - site of Senator Phelan's original office.

"We're proud to welcome members of the company's apparel team to what has rapidly become one of the hottest properties in downtown San Francisco," said Joseph Sitt, CEO of Thor Equities. "The Phelan building -- a beloved San Francisco historic landmark with a host of traditional office spaces -- has undergone a classic restoration and reinterpretation with open floor plans of creative spaces to better suit the modern office community."

Goodman added, "This office continues Sears Holdings' commitment to enhancing our apparel offerings and business. Along with the new space in San Francisco, we operate our design offices in Lower Manhattan, and have a team of associates in our Hoffman Estates Support Center dedicated to giving our customers more reasons to shop our stores and our Web sites everyday."

Sears Holdings' San Francisco office will include merchandising positions across both the Sears and Kmart apparel formats. Associates will immediately begin occupying the space and qualified candidates looking to apply may do so by visiting www.searsholdings.com/careers.

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. 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 Thor Equities

Thor Equities is a leader in urban real estate development, leasing and management, pursuing premier hotel, commercial, retail and mixed-use assets in high-density areas. Thor Equities provides the best possible "High Street" retail, commercial, hotel and mixed-use building environments within urban centers across the United States - all while delivering attractive, risk-adjusted returns to investors.

First Call Analyst:
FCMN Contact: kfreely@searshc.com

SOURCE: Sears Holdings

CONTACT: News Media, Sears Holdings Public Relations, +1-847-286-6093;
or Stefan Friedman of Thor Equities, +1-646-241-7786; or Mayor's Office of
Communications, +1-415-554-6131

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