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Kmart Holding Corporation (NASDAQ: KMRT) ("Kmart") and E! Entertainment Television ("E!") today announced an innovative marketing campaign to launch Attention庐, a new apparel line available only at Kmart, and promote "E! News Live," the only live daily entertainment news telecast. The partnership allows the major retailer and the top cable television network to jointly leverage their respective assets for mutually beneficial purposes.

As part of the deal, talent from "E! News Live," including Alisha Davis, Giuliana Depandi and Kristin Veitch, will wear Attention庐 in Kmart's magazine advertising campaign scheduled to break this week in major fashion and entertainment publications. In addition, the E! personalities will wear the retailer's Attention line on "E! News Live" weekly throughout the fall. In return, Kmart will include tune-in messaging for "E! News Live" in the magazine campaign and in signage throughout its stores.

Paul Guyardo, Kmart's Senior Vice President, Chief Marketing Officer, said, "We're excited to be working with E! because it provides another great opportunity to market our exclusive brands in a non-traditional way. Our new Attention line is smart, stylish apparel that comes to life perfectly when worn by the women of E! News Live."

Stephen Earley, Vice President, Marketing Solutions, E! Networks commented, "This new Kmart partnership is a wonderful match for us, providing an exciting new way for E! to further extend our brand, expand the awareness of our popular news franchise and its personalities, and to reach the desirable 18-49 female demographic."

  Creative for the campaign was developed by Grey Worldwide (NASDAQ: GREY).

  About Kmart Holding Corporation

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 including Thalia Sodi, Jaclyn Smith, Joe Boxer, Kathy Ireland, Martha Stewart Everyday, Route 66 and Sesame Street. For more information visit the Company's website at .

About E! Networks

Based in Los Angeles, E! Networks is the world's largest producer and distributor of entertainment news and lifestyle-related programming. The company operates E! Entertainment Television, the 24-hour network with programming dedicated to the world of entertainment; The Style Network where life gets a new look, and E! Online, located at . E! is currently available to 85 million cable and direct broadcast satellite subscribers in the U.S. Style currently counts 36 million subscribers with commitments to reach over 40 million in 2004. E! Online reaches 6 million monthly unique U.S. adult users.

Cautionary Statement Regarding Forward-Looking Information and Other Matters

Statements or reports made by or on behalf of Kmart which address activities, events or developments that we expect or anticipate may occur in the future are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that reflect, when made, Kmart's current views with respect to current events and financial performance. Such forward-looking statements are based upon assumptions concerning future conditions that may ultimately prove to be inaccurate and involve risks, uncertainties and factors that could cause actual results to differ materially from any anticipated future results, express or implied, by such forward- looking statements. Factors that could cause actual results to differ materially from these forward-looking statements include, but are not limited to, factors relating to Kmart's internal operations and the external environment in which it operates; Kmart's ability to successfully implement business strategies and otherwise fund and execute planned changes in various aspects of the business; marketplace demand for the products of Kmart's key brand partners, as well as the engagement of appropriate new brand partners; changes in consumer spending and Kmart's ability to anticipate buying patterns and implement appropriate inventory strategies; Kmart's ability to reverse its negative same-store sales trend; competitive pressures and other third party actions, including pressures from pricing and other promotional activities of competitors, as well as new competitive store openings; the resolution of allowed claims for which Kmart is obligated to pay cash under the Plan of Reorganization; Kmart's ability to properly monitor its inventory needs in order to timely acquire desired goods in appropriate quantities and/or fulfill labor needs at planned costs; Kmart's ability to attract and retain customers; Kmart's ability to maintain normal terms with vendors and service providers; Kmart's ability to maintain contracts, including leases, that are critical to its operations; Kmart's ability to develop a market niche; regulatory and legal developments; general economic conditions; weather conditions, including those which affect buying patterns of Kmart's customers; other factors affecting business beyond Kmart's control; Kmart's ability to attract, motivate and/or retain key executives and associates; and other risks detailed in Kmart's Securities and Exchange Commission filings. Kmart undertakes no obligation to release publicly the results of any revisions to these forward- looking statements to reflect events or circumstances after the date such statements were made.

SOURCE: Kmart Holding Corporation; E! Entertainment Television

CONTACT: Kmart Media Relations, +1-248-463-1021; or Nicole Goesseringer
of E!, +1-323-692-4454, ngoesseringer@eentertainment.com

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