OTHER NEWS - May 24, 1995

Kmart Loses Battle on Shareholder Proposal: The nation’s second-largest retailer said a shareholder proposal requesting that the company make all directors seek reelection each year won 60.5% of votes cast. Kmart had opposed the proposal. Kmart Chairman Donald Perkins, presiding at his first annual meeting as Kmart Corp.’s chairman said the vote on the non-binding proposal sent a strong signal that shareholders want change. Kmart will decide before next year’s annual meeting whether to seek shareholder approval to amend its charter to pave the way for annual elections of the full board. Perkins acknowledged to reporters after the meeting that shareholders remain frustrated after a steep first-quarter loss and the failure to quickly find a successor to Joseph Antonini, the company’s former chief executive who resigned under pressure in March.