Kmart Selects CommerceHub to Electronically Integrate Its Suppliers and to Manage Its Drop-Ship Fulfillment Program

ALBANY, NY -- 11/18/2004 -- Expanding its leadership position as a provider of supply chain integration and management solutions for multi-channel retailers, CommerceHub announced today that Kmart (NASDAQ: KMRT), a leading multi-channel merchant with nearly 1,500 retail outlets in the US, Puerto Rico and the Virgin Islands, will use its platform and applications to integrate and expand its drop-ship fulfillment network. Kmart joins CommerceHub’s rapidly growing network of the world’s leading multi-channel merchants that includes Sears, QVC, Target, Staples, ShopNBC, Costco and Federated, among others.

CommerceHub’s Universal Connection Hub platform, the industry’s leading turnkey drop-ship fulfillment solution, will enable Kmart to rapidly integrate new suppliers and expand product offerings for its on-line business without taking on inventory, or the costs and technical challenges typically associated with connecting disparate trading partners. Further, CommerceHub’s Drop-Ship Master application will provide Kmart with complete visibility into orders from point of sale through delivery, as well as exception-based management to ensure superior customer service. By using the CommerceHub platform, Kmart will be able to achieve the same levels of brand management, fulfillment performance and levels of customer service as if they were shipping the products directly from their own warehouse.

“We are excited to partner with Kmart to integrate and manage their drop-ship network,” said Frank Poore, President and CEO of CommerceHub. “By working with a company dedicated to growing their Kmart.com business through the use of drop-ship fulfillment, CommerceHub will continue to expand our role as the industry leader, while at the same time providing Kmart with the critical tools and capabilities to enable them to achieve their objectives in the management of their fulfillment network.”

About CommerceHub
CommerceHub is the #1 provider of supplier integration and order management services for multi-channel retailers including QVC, Target, Sears, Staples, ShopNBC, Costco and Federated, among others. By providing a single plug-and-play connection to multiple trading partners, CommerceHub enables any retailer to electronically integrate with its suppliers, regardless of the unique systems and capabilities that exist among them. CommerceHub’s applications enable retailers to gain real-time visibility into their entire supply chain to ensure the proper delivery of goods under a variety of fulfillment models. In addition, the applications enable merchants to rapidly expand product offerings, preserve brand identity, and manage, analyze, and deliver comprehensive order information to their customers, all with no inventory risk. World-class merchants and suppliers have chosen CommerceHub to increase speed to market, grow sales, reduce expenses, and enhance customer service by improving supply chain performance. For more information visit the Company’s website at http://www.commercehub.com.

About Kmart Holding Corporation
Kmart Holding Corporation and its subsidiaries (together, “Kmart”) is a mass merchandising company that offers customers quality products through a portfolio of exclusive brands that include Thalia Sodi, Jaclyn Smith, Joe Boxer, Martha Stewart Everyday, Route 66 and Sesame Street. For more information visit the Company’s website at www.kmart.com.

Contact Information

Kimberly Brooks

PR

CommerceHub

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