TROY, Mich., February 3, 2003 -- Kmart Corporation (Pink Sheets: KMRTQ) today unveiled Urban Direct, a new entertainment and lifestyle newspaper supplement that contains interviews, articles and product offerings that resonate within urban communities. Following on the heels of the launch of its first Spanish-language newspaper publication, La Vida, Kmart’s Urban Direct launches Sunday, February 2, and is another key element of Kmart’s multicultural marketing strategy.

The initial distribution of one million copies of Urban Direct will be circulated in nine select markets including: Atlanta; Baltimore; Chicago; Detroit; East Brunswick, New Jersey; Long Island, New York; Miami; Philadelphia; and Washington, D.C. Urban Direct will be available as a wrap to Kmart’s weekly newspaper advertising circular. The new publication will reach more than 2.7 million urban customers in the U.S. each month, and will allow Kmart the opportunity to speak directly to its urban customer base on a weekly basis through its targeted editorial content and product offers.

Beginning with its February 2 issue, Urban Direct will feature celebrity interviews and topical editorial content that will resonate with Kmart’s African American and urban consumers. The publication’s first cover will feature Grammy-award winning rap artist L.L. Cool J. Alturas Communications, Inc. developed Kmart’s Urban Direct, as well as the La Vida, publication concept.

Most retail analysts agree the urban market presents a unique sales opportunity, as it is currently under-served and, according to research, the customer base tends to be more loyal to their shopping destinations. Kmart stores have a presence in 288 of the 331 Metropolitan Statistical Areas (MSAs) in the U.S.; a great majority of which, by nature of their population density and multicultural makeup, are considered urban markets. According to the U.S. Bureau of Labor Statistics’ 2001 Consumer Expenditure Survey data, the total expenditures for all urban consumers is $3.9 trillion.

“We are proud to be the first major discount retailer to offer a weekly newspaper supplement that is designed to build a relationship with the urban consumer. Urban Direct highlights special in-store promotions, relevant cultural information and a section featuring a Kmart employee of the month, to further demonstrate Kmart’s dedication to this important market,” said Barbara J. Firment, senior vice president of Advertising Sales and In-Store Presentation, Kmart Corporation.

Along with entertainment and lifestyle content, the first issue of Urban Direct will also feature information on Kmart’s nationwide Black History Month campaign: “Celebrate the Journey.” As part of Kmart’s ongoing commitment to support the achievements of African Americans, Kmart’s nationwide in-store, online and radio advertising program is intended to build awareness, interest and visitation at the Park Foundation’s African American Experience Fund sites.

Among the country’s 385 national parks are 17 historic sites and parks that share the stories of the significant contributions of African Americans throughout U.S. history. These include: Booker T. Washington National Monument, Brown v. Board of Education National Historic Site, George Washington Carver National Monument and the Underground Railroad Network to Freedom, among others.

Kmart Corporation is a mass merchandising company that serves America through its Kmart and Kmart SuperCenter retail outlets. The Company’s common stock is currently quoted on the Pink Sheets Electronic Quotation Service www.pinksheets.com under the symbol KMRTQ. More information about Kmart multicultural initiatives may be found at www.kmart.com

Alturas Communications Inc. is a minority-owned, full-service marketing communications company specializing in multicultural and urban retail solutions. Headquartered in Denver, Alturas Communications also has offices in Detroit and Miami.