Kmart Renews Contract With Penske Auto Centers

    TROY, Mich., May 2 Kmart Corporation today
announced that it is extending its agreement with Penske Auto Centers to
operate the existing Auto Service Centers in 638 Kmart and Kmart Supercenter
stores nationwide.  Penske initially assumed operations of Kmart's Auto
Service Centers in 1995.

    "The Penske brand is known for great product and services.  We are excited
that we will continue to have Penske as our brand partner delivering high-
quality car care to our customers.  This new agreement will benefit both
companies as we pursue our strategic growth plans," said Kmart President and
Chief Operating Officer Mark Schwartz.

    The renewed agreement includes a 10-year initial term under which Penske
Auto Centers will continue to provide complete auto service including repair
and routine maintenance.

    "We're enthused about the new long-term agreement with Kmart and the
unique marketing advantage we enjoy by having our Auto Centers located at
Kmart.  It certainly offers us excellent exposure to Kmart's customer base.
We look forward to growing our stores along with Kmart while continuing our
efforts to provide our customers and those of Kmart with superior automotive
services and quality products at value prices," stated Jim Wheat, President
and CEO of Penske Auto Centers.