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For the first time, Kmart Corporation (NYSE: KM) will publish its weekly advertising circular in Spanish throughout the U.S. The company is tailoring its newspaper circular for the Hispanic community, in order to reach hundreds-of-thousands of Spanish-speaking customers who shop Kmart stores.

Beginning August 29, the Kmart full-color advertising circular will be translated into Spanish (Castilian) language. The new circular will be released in conjunction with September's Hispanic Heritage Month and will be featured in ten prominent Spanish-language newspapers across the country, and also available in 160 stores, serving communities with large Hispanic populations. Meridian Inc., of Troy, Michigan developed the circular.

"According to our extensive research, the buying power of Hispanics in America has increased more than 110 percent over the past ten years," said Barbara J. Firment, Senior Vice President Advertising, Sales and In-Store Presentation. "With our exceptional reach into urban markets, we feel we have a distinct advantage over other discount retailers when it comes to connecting with Hispanic customers. This is another groundbreaking example of how Kmart is reaching out to meet the needs of the communities it serves."

More than 55 percent of all Hispanics living in the United States are within 15 minutes of a Kmart store. The company also has the greatest reach within the Hispanic population, compared to 17 percent for Wal-Mart and 13 percent for Target. (K-Trends 2001)

"Kmart has been reaching out to this important market for many years. Publishing its weekly advertising circular in Spanish is a natural progression for Kmart's Hispanic marketing efforts. Our market readership studies document that Hispanic customers are particularly attentive to Kmart circulars and rely on them during their weekly shopping. The reaction from Hispanic publishers and community leaders has been outstanding," added Dan Surdell, Chief Executive Officer of Meridian Inc.

According to Robert J. Armband, Associate Publisher of La Raza Newspaper and Vice President for the National Association of Hispanic Publications, "Kmart is on the cutting edge in harnessing the power of Hispanic print media outlets. I was very excited to learn that starting in September, Hispanic Heritage Month, Kmart is going to go the extra mile by translating their circular for distribution in Spanish-language publications."

The first Kmart Spanish-language advertising circular will highlight the five-year anniversary of Kmart's exclusive Sesame Street庐 clothing label. The circular will be filled with savings on the adorable and durable clothing that children -- and moms -- love, featuring popular characters such as Big Bird and Elmo.

As the $500 billion Hispanic marketplace continues to grow in the U.S., Kmart is expanding its efforts to directly reach this influential consumer group. The company's current "Stuff of Life" television advertising campaign has been reconceived into Spanish as "Las Cosas para La Vida." The spots feature family imagery meant to resonate with Hispanic audiences, and include background vocals by Grammy Award-winning artist Jose Feliciano. Kmart also markets to Hispanic consumers through "community merchandising," stocking products that are best suited for the area residents it serves.

Kmart's dedication to the Hispanic community is just one of the assets that sets it apart from other discount retailers. Kmart also features a distinctive combination of high-quality, exclusive products; convenience; locations and value across the store that has made it a shopping favorite for more than 100 years.

Kmart Corporation is a mass merchandising company that serves America with more than 1,800 Kmart and Kmart SuperCenter retail outlets and through its e- commerce shopping site . Kmart in 2001 had sales of $36 billion.

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SOURCE: Kmart Corporation

CONTACT: Susan Dennis of Kmart Corporation, +1-248-463-1021,
sdennis1@kmart.com

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