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Press Release

Dec 15, 1999

Kmart's Bluelight.com Teams With Yahoo! And Spinway.com To Bring The Web To Millions

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KMART'S BLUELIGHT.COM TEAMS WITH YAHOO! AND SPINWAY.COM TO BRING THE WEB TO MILLIONSNew York, NY -- December 15, 1999 -- Kmart Corporation (NYSE: KM), SOFTBANK Venture Capital, and Yahoo! Inc. today announced an agreement designed to enhance the overall online experience of Web users. Under the agreement, Kmart's millions of customers now have the ability to get free Internet access through BlueLight.com (http://www.bluelight.com) and have access to personalized content and services from Yahoo!, a leading global Internet media company serving 105 million users worldwide.

Today, Kmart also introduced its e-commerce offering, BlueLight.com where users will have access to a wide selection of Kmart products. The BlueLight.com free Internet service features a personalizable, co-branded My Yahoo! (http://bluelight.my.yahoo.com) start page that also enables BlueLight.com users to browse and purchase featured products. The BlueLight.com service also will be distributed and promoted on Yahoo! Shopping (http://shopping.yahoo.com), one of the Web's most popular destinations, and throughout the Yahoo! network of properties. In addition, the service will be marketed to Kmart's customers through offline in-store promotions and through Kmart's circulars.

BlueLight.com is giving the gift of free Web access to online shoppers just in time for the holiday season. Courtesy of Spinway.com, BlueLight.com's free ISP service will help bring the Internet to millions of Americans who may not be currently online.

All users of the free BlueLight.com services will be greeted by a co-branded BlueLight.com/My Yahoo! start page, which includes personalized relevant news, sports and weather, as well as BlueLight featured products. Through an integrated registration process, BlueLight.com users can also sign up for a Yahoo! Mail (http://mail.yahoo.com) account, making it easy and convenient for users to stay in touch at home, at work or while traveling for business or pleasure. Additionally, BlueLight.com users will have a co-branded version of Yahoo! Messenger (http://messenger.yahoo.com), Yahoo!'s instant messaging service. This comprehensive suite of services provides users with a complete Fortified with Yahoo!® solution, making their online experience even more seamless.

With Internet service provided by Spinway.com, a leading free Internet access and advertising solutions company; and infrastructure from Cisco systems; the free ISP is available immediately online at www.bluelight.com and by phone (1-888-945-9255). Beginning in February 2000, the free ISP is scheduled to be distributed in CD ROM format at 2,177 Kmart stores nationwide.

"Internet access is a mainstay in the lives of so many people. At Kmart, we recognize the need to remove barriers that may be keeping millions of American shoppers from joining the 'Internet Revolution.' BlueLight.com's free Internet service powered by Spinway.com is a special 'Thank You' gift to the millions of shoppers who have helped build Kmart into one of the strongest retail brands anywhere," said Floyd Hall, Chairman, President and CEO of Kmart. "By working with Yahoo!, BlueLight.com will be able to offer our users a high-quality online suite of services."

"Yahoo! is extremely pleased to be teaming up with BlueLight.com to help bring Kmart's extensive customer base online," said Jeff Mallett, president and COO, Yahoo! Inc. "This program is a natural way for us to extend our brand and strong service offerings to their millions of Kmart customers."

BlueLight.com combines the strength of the Kmart brand, its merchandising expertise, and vendor relationships with a unique Web experience, including special "Blue Light" promotions - which harken back to Kmart's well-known deeply discounted specials. BlueLight.com's totally free Internet service also features access to BlueLight.com's online store where consumers will be able to purchase selected Kmart products. BlueLight.com plans to launch its full store in mid-2000.

Mark H. Goldstein, CEO of BlueLight.com, added, "This is an unprecedented offer bringing together Kmart - one of the nation's strongest retail brands - with Yahoo!, the leading Internet brand worldwide. We believe that this will make BlueLight.com a leader in consumers' minds when they think of good value on the Internet."

"Spinway.com's technology is making our vision of an integrated, personalized e-commerce site - combined with free Internet access - possible," Goldstein continued. "First to market with full-motion video at dial-up, Spinway.com is combining a superior advertising medium with an array of Yahoo! community features and services that we've easily integrated with BlueLight.com."

BlueLight.com is available by calling 1-888-945-9255 or on-line through www.bluelight.com or www.yahoo.com.

About Kmart Corporation
Kmart Corporation serves America with 2,177 Kmart, Big Kmart and Super Kmart stores. In addition to serving all 50 states, Kmart operations extend to Puerto Rico, Guam and the U.S. Virgin Islands. More information about Kmart is available on the World Wide Web at www.kmart.com. To locate the store nearest you, call 1-800-866-0086.

About BlueLight.com Corporation
BlueLight.com, formed in 1999 by Kmart Corporation (NYSE: KM) and SOFTBANK Venture Capital, is the first integrated e-commerce company serving Kmart's vast customer base. BlueLight.com offers discount online shopping, free Internet access nationwide, and personalized portal and messaging pages through relationships with Spinway.com and Yahoo! (Nasdaq: YHOO). For more information, visit www.bluelight.com.

About Spinway.com
Established in 1998, Spin Media Network Inc. (www.Spinway.com) provides businesses with co-branded or private label, free dial-up Internet access for use in driving traffic and broadening brand identity. Spinway.com's technology solves the targetability, tracking and rich media shortcomings of traditional browser-based advertising. First to market with full-motion video at dial-up, Spinway.com can deliver targeted, trackable, 30 frames per second, non-streaming television quality commercials over standard dial-up modems - without impacting a user's experience. Spinway.com can easily incorporate partners' technology to include personalized content, rewards programs, instant messaging, full-featured email and parental control software. The result is an effective marketing tool that propels user acquisition and retention, drives more traffic to partner sites and provides them with a constant connection to their user base.

About Yahoo!
Yahoo! Inc. (Nasdaq: YHOO) is a global Internet media company that offers a branded network of media, commerce, and communication services to more than 100 million users worldwide. As the first online navigational guide to the Web, www.yahoo.com is the leading guide in terms of traffic, advertising, household and business user reach, and is one of the most recognized brands associated with the Internet. The company also provides online business services designed to enhance Yahoo!'s clients' Web services, including audio and video streaming, store hosting and management, and Web site tools and services. The company's global Web network includes 21 World properties. Yahoo! has offices in Europe, the Asia Pacific, Latin America, Canada and the United States, and is headquartered in Santa Clara, Calif.

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