Kmart Reorganizes Store Operations, Announces Leadership Changes

TROY, Mich. - Kmart Corporation today announced a new store operations and field organizational structure with corresponding executive changes, effective immediately.

Kmart's store operations and field organization is being structured into five separate operating divisions including four geographic areas -- West, Southeast, Northeast and International -- and a separate Super Centers division. The company previously operated with six geographical field divisions.

Leading this new structure will be Gregg Treadway, who has been promoted to executive vice president, store operations, reporting directly to Kmart CEO Chuck Conaway. Treadway will have the responsibility for the operations of all five divisions.

"Kmart is committed to addressing our operational challenges in a thoughtful, yet aggressive, manner. This new organization will provide a clear, focused direction and strong leadership for our store teams" said Conaway. "Gregg Treadway brings 26 years of retail experience to this new position and I have the utmost confidence in Gregg's ability to lead our store operations team at this critical time."

Treadway joined Kmart in 2001 as senior vice president, Midwest Division. Prior to joining Kmart he was vice president, store operations for Dollar General Inc. He also held senior level operations and field management positions with Autozone Inc., Toys "R" Us and Wal-Mart Stores.

Reporting to Treadway will be five division presidents who will have total accountability for the financial results and strategic direction of their respective divisions.

Following are the newly appointed Division Presidents:
- International Division: Paul J. Hueber, formerly senior vice president and managing director, Caribbean Division.

- Super Centers Division: Michael S. Jardina, formerly senior vice president, Northeast.

- Northeast Division: Douglas M. Meissner, formerly senior vice president, sales and advertising.

- West Division: Lee M. Viliborghi, formerly senior vice president, Northwest.

- Southeast Division: William Wulfers, formerly senior vice president, Southeast.

Also, effective immediately, David Montoya has been appointed senior vice president, specialty operations reporting directly to Paul Hueber. Montoya will be instrumental in growing Kmart's specialty business interests. He will assume responsibility for Kmart Express, Restaurant Operations and One-Hour Photo. Montoya joined Kmart in 2000.

David Marsico has been appointed to senior vice president, sales and marketing. In this position he will be responsible for sales promotions, advertising strategy and in-store marketing events. Marsico is a 30-year Kmart veteran and most recently served as senior vice president - Southwest.