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KB Toys and Sears Extend Relationship

'KB Toys at Sears' Departments in 600 Sears Locations

KB Toys and Sears, Roebuck and Co. (NYSE: S) announced today that they have entered into a new agreement which will extend a relationship initiated in 2001 by expanding the "KB Toys at Sears" concept to 600 select Sears locations throughout the United States and Puerto Rico this holiday season.

The KB Toys "store-within-a-store," at Sears, which debuted as a 29-store test in 2001 and grew to 77 locations in 2002, will continue to offer Sears customers the convenience of one-stop shopping, a large selection of name brand toys and exclusive items, all value-priced. Each KB Toys at Sears will operate from mid-October through early January as part of the Christmas Shop. Additionally, both Sears and KB Toys retail channels will feature an expanded selection of "My First Craftsman™" tool toys and activity kits developed by KB Toys under a trademark license agreement signed last year.

"We are very excited about expanding our Christmas Shop to include toys this holiday season," said Jeff Rothe, vice president, Lawn and Garden for Sears. "Our customer has historically come to us for toys and we will now be able to offer her a broad assortment of popular items."

"We're thrilled to continue and grow our relationship with Sears and to provide Sears customers with an exciting merchandise selection this season," said Sal Vasta, executive vice president, Strategic Business Development for KB Toys. "The growth and success of this alliance is the result of both teams refining the KB Toys at Sears concept to provide customers with the best overall shopping experience."

For the second consecutive year, Sears and KB Toys are working together to present the Sears Wish Book® -- online and in its traditional catalog form -- to customers nationwide. The Sears Wish Book® now focuses solely on toys and video games, which are supplied and fulfilled exclusively by KB Toys. KB Toys will also continue to supply and fulfill the toy and video game assortments for sears.com.

Forward-Looking Statements

This release contains forward-looking statements based on assumptions about the future that are subject to risks and uncertainties, such as competitive conditions in retail; changes in consumer confidence and spending; anticipated cash flow; general economic conditions and normal business uncertainty. While the company believes in a successful implementation of this relationship with KB Toys, it cautions that actual results may differ materially. The company intends these forward-looking statements to speak only as of the time of this presentation and does not undertake to update or revise them as more information becomes available.

About KB Toys

KB Toys is the nation's largest combined mall-based and online specialty toy retailer, operating more than 1,300 stores in all 50 states, the American Territory of Guam and the Commonwealth of Puerto Rico. KB Toys operates retail stores under the names KB Toys®, KB Toy Works®, KB Toy Outlet™, Toy Liquidators®, KB Toy Express® and offers online shopping through KBtoys.com™ ( www.kbtoys.com ) and eToys® ( www.etoys.com ). KB Toys, Inc., the parent corporation, is a privately held company headquartered in Pittsfield, Massachusetts.

About Sears Roebuck and Co.

Sears, Roebuck and Co. is a broadline retailer with significant service and credit businesses. In 2001, the company's annual revenue was more than $41 billion. The company offers its wide range of apparel, home and automotive products and services to families in the U.S. through Sears stores nationwide, including approximately 870 full-line stores. Sears also offers a variety of merchandise and services through its Web site, www.sears.com . In June 2002, Sears acquired Lands' End, a direct merchant of traditionally styled, classic Lands' End clothing offered to customers around the world through regular mailings of its specialty catalogs and online at www.landsend.com .

                     2003 KB Toys at Sears Locations

   CITY             ST   CITY              ST   CITY             ST
   ANCHORAGE        AK   CITRUS HTS        CA   CLEARWATER       FL
   WASILLA          AK   LAGUNA HILLS      CA   TAMPA            FL
   FAIRBANKS        AK   CARSON            CA   ORANGE PARK      FL
   MOBILE           AL   CITY INDUSTRY     CA   FORT MYERS       FL
   MONTGOMERY       AL   WESTMINSTER       CA   PLANTATION       FL
   BIRMINGHAM       AL   MODESTO           CA   SANFORD          FL
   BIRMINGHAM       AL   BREA              CA   TALLAHASSEE      FL
   HUNTSVILLE       AL   SAN DIEGO         CA   JACKSONVILLE     FL
   DECATUR          AL   SANTA ROSA        CA   BOCA RATON       FL
   AUBURN           AL   CARLSBAD          CA   MIAMI            FL
   LITTLE ROCK      AR   SALINAS           CA   GAINESVILLE      FL
   N LITTLE ROCK    AR   NEWARK            CA   WEST PALM BCH    FL
   HOT SPRINGS      AR   MONTCLAIR         CA   MIAMI            FL
   PINE BLUFF       AR   ESCONDIDO         CA   TAMPA            FL
   CHANDLER         AZ   RICHMOND          CA   BOYNTON BEACH    FL
   TUCSON           AZ   BURBANK           CA   PALM BCH GDNS    FL
   PHOENIX          AZ   MORENO VALLEY     CA   PMBK PINES       FL
   MESA             AZ   SAN JOSE          CA   LAKELAND         FL
   PHOENIX          AZ   MONTEBELLO        CA   MARY ESTHER      FL
   TUCSON           AZ   HANFORD           CA   KEY WEST         FL
   PHOENIX          AZ   CHICO             CA   JENSEN BEACH     FL
   GLENDALE         AZ   TRACY             CA   PANAMA CITY      FL
   FLAGSTAFF        AZ   VISALIA           CA   PORT RICHEY      FL
   LOS ANGELES      CA   SANTA BARBARA     CA   AUGUSTA          GA
   LOS ANGELES      CA   EL CENTRO         CA   DOUGLASVILLE     GA
   PLEASANTON       CA   YUBA CITY         CA   KENNESAW         GA
   LOS ANGELES      CA   MERCED            CA   LITHONIA         GA
   OAKLAND          CA   EUREKA            CA   ATLANTA          GA
   PASADENA         CA   WESTMINSTER       CO   SAVANNAH         GA
   PALMDALE         CA   LAKEWOOD          CO   ATLANTA          GA
   GLENDALE         CA   AURORA            CO   MACON            GA
   TEMECULA         CA   COLORADO SPGS     CO   MORROW           GA
   VENTURA          CA   LITTLETON         CO   DULUTH           GA
   WHITTIER         CA   FORT COLLINS      CO   BRUNSWICK        GA
   ROSEVILLE        CA   LONGMONT          CO   WAYCROSS         GA
   FAIRFIELD        CA   GREELEY           CO   VALDOSTA         GA
   N HOLLYWOOD      CA   WEST HARTFORD     CT   DALTON           GA
   SANTA MONICA     CA   MILFORD           CT   ATHENS           GA
   CANOGA PARK      CA   WATERFORD         CT   ROME             GA
   WEST COVINA      CA   WATERBURY         CT   HONOLULU         HI
   SAN MATEO        CA   DANBURY           CT   AIEA             HI
   FRESNO           CA   MANCHESTER        CT   KANEOHE          HI
   LONG BEACH       CA   WILMINGTON        DE   KAHULUI MAUI     HI
   SACRAMENTO       CA   WILMINGTON        DE   LIHUE            HI
   MOUNTAIN VIEW    CA   SEAFORD           DE   HILO             HI
   HAYWARD          CA   LAKE WALES        FL   DES MOINES       IA
   BUENA PARK       CA   OCALA             FL   FORT DODGE       IA
   TORRANCE         CA   BRANDON           FL   DUBUQUE          IA
   STOCKTON         CA   VERO BEACH        FL   CORALVILLE       IA
   RIVERSIDE        CA   CORAL SPRINGS     FL   MASON CITY       IA
   DOWNEY           CA   JACKSONVILLE      FL   SIOUX CITY       IA
   BAKERSFIELD      CA   DAYTONA BEACH     FL   DAVENPORT        IA
   CHULA VISTA      CA   PENSACOLA         FL   CHUBBUCK         ID
   CONCORD          CA   OCOEE             FL   BOISE            ID
   ORANGE           CA   MIAMI             FL   TWIN FALLS       ID
   COSTA MESA       CA   POMPANO BEACH     FL   IDAHO FALLS      ID
   SAN BERNARDINO   CA   ORLANDO           FL   CHICAGO          IL
   SACRAMENTO       CA   TAMPA             FL   CHICAGO          IL
   EL CAJON         CA   ORLANDO           FL   CHICAGO          IL
   CUPERTINO        CA   ST PETERSBURG     FL   CHICAGO          IL
   SAN BRUNO        CA   HIALEAH           FL   BLOOMINGDALE     IL
   SAN JOSE         CA   ALTAMONTE SPG     FL   NO RIVERSIDE     IL
   NORTHRIDGE       CA   MIAMI             FL   NILES            IL


   CITY             ST   CITY              ST   CITY             ST
   CERRITOS         CA   AUBURN            MA   JEFFERSON CTY    MO
   OAK BROOK        IL   BROCKTON          MA   SAINT JOSEPH     MO
   PEORIA           IL   HANOVER           MA   JACKSON          MS
   CHICAGO          IL   PEABODY           MA   MCCOMB           MS
   CALUMET CITY     IL   HOLYOKE           MA   COLUMBUS         MS
   SCHAUMBURG       IL   BRAINTREE         MA   GAUTIER          MS
   VERNON HILLS     IL   CAMBRIDGE         MA   GREENVILLE       MS
   FAIRVIEW HTS     IL   NATICK            MA   MISSOULA         MT
   AURORA           IL   HYANNIS           MA   GREAT FALLS      MT
   JOLIET           IL   GLEN BURNIE       MD   CONCORD          NC
   ORLAND PARK      IL   WALDORF           MD   ASHEVILLE        NC
   WEST DUNDEE      IL   SILVER SPRING     MD   GREENSBORO       NC
   CHICAGO RIDGE    IL   BEL AIR           MD   WINSTON SALEM    NC
   MATTESON         IL   BETHESDA          MD   FAYETTEVILLE     NC
   ALTON            IL   LANDOVER          MD   MONROE           NC
   SAINT CHARLES    IL   BALTIMORE         MD   BURLINGTON       NC
   FORSYTH          IL   ANNAPOLIS         MD   MOREHEAD CITY    NC
   MT VERNON        IL   GAITHERSBURG      MD   GREENVILLE       NC
   QUINCY           IL   COLUMBIA          MD   GOLDSBORO        NC
   DANVILLE         IL   BALTIMORE         MD   HICKORY          NC
   BLOOMINGTON      IL   COCKEYSVILLE      MD   ROCKY MOUNT      NC
   GALESBURG        IL   BOWIE             MD   ASHEBORO         NC
   MATTOON          IL   BALTIMORE         MD   SHELBY           NC
   CHICAGO          IL   PRESQUE ISLE      ME   STATESVILLE      NC
   EVANSVILLE       IN   AUGUSTA           ME   WILSON           NC
   GREENWOOD        IN   LEWISTON          ME   MINOT            ND
   MERRILLVILLE     IN   WESTLAND          MI   BISMARCK         ND
   MISHAWAKA        IN   FLINT             MI   GRAND ISLAND     NE
   FORT WAYNE       IN   GRAND RAPIDS      MI   SALEM            NH
   COLUMBUS         IN   LANSING           MI   NASHUA           NH
   MARION           IN   WATERFORD         MI   MANCHESTER       NH
   ELKHART          IN   LINCOLN PARK      MI   NEWINGTON        NH
   ANDERSON         IN   HARPER WOODS      MI   JERSEY CITY      NJ
   CLARKSVILLE      IN   ANN ARBOR         MI   HACKENSACK       NJ
   MICHIGAN CITY    IN   ROSEVILLE         MI   FREEHOLD         NJ
   LOGANSPORT       IN   LIVONIA           MI   WATCHUNG         NJ
   RICHMOND         IN   TROY              MI   NEW BRUNSWICK    NJ
   OVERLAND PARK    KS   SAGINAW           MI   WAYNE            NJ
   WICHITA          KS   DEARBORN          MI   DEPTFORD         NJ
   WICHITA          KS   STERLING HTS      MI   MOORESTOWN       NJ
   SALINA           KS   NOVI              MI   MAYS LANDING     NJ
   LAWRENCE         KS   MONROE            MI   MIDDLETOWN       NJ
   MANHATTAN        KS   HOLLAND           MI   LIVINGSTON       NJ
   HUTCHINSON       KS   ADRIAN            MI   PARAMUS          NJ
   LEAVENWORTH      KS   MIDLAND           MI   WOODBRIDGE       NJ
   LEXINGTON        KY   BENTON HARBOR     MI   LAWRENCEVILLE    NJ
   FLORENCE         KY   BROOKLYN CTR      MN   OCEAN            NJ
   LOUISVILLE       KY   SAINT PAUL        MN   ROCKAWAY         NJ
   LOUISVILLE       KY   MINNETONKA        MN   BURLINGTON       NJ
   ELIZABETHTOWN    KY   MAPLEWOOD         MN   TOMS RIVER       NJ
   FRANKFORT        KY   BURNSVILLE        MN   ALBUQUERQUE      NM
   ASHLAND          KY   EDEN PRAIRIE      MN   ALBUQUERQUE      NM
   MIDDLESBORO      KY   COON RAPIDS       MN   ROSWELL          NM
   BATON ROUGE      LA   BLOOMINGTON       MN   SANTA FE         NM
   BATON ROUGE      LA   INDEPENDENCE      MO   LAS CRUCES       NM
   METAIRIE         LA   SPRINGFIELD       MO   FARMINGTON       NM
   GRETNA           LA   KANSAS CITY       MO   CLOVIS           NM
   LAFAYETTE        LA   ST PETERS         MO   LAS VEGAS        NV
   N ATTLEBORO      MA   SAINT LOUIS       MO   LAS VEGAS        NV
   SAUGUS           MA   SAINT LOUIS       MO   HENDERSON        NV
   MARLBOROUGH      MA   ST ANN            MO   RENO             NV
   DEDHAM           MA   CAPE GIRARDEAU    MO   GARDEN CITY      NY
   LEOMINSTER       MA   KANSAS CITY       MO   ALBANY           NY


   CITY             ST   CITY              ST   CITY             ST
   BURLINGTON       MA   SHAWNEE           OK   MORRISTOWN       TN
   BROOKLYN         NY   BARTLESVILLE      OK   MARYVILLE        TN
   BAY SHORE        NY   ENID              OK   MURFREESBORO     TN
   BROOKLYN         NY   NORMAN            OK   CLEVELAND        TN
   AMHERST          NY   LAWTON            OK   COLUMBIA         TN
   HICKSVILLE       NY   PORTLAND          OR   OAK RIDGE        TN
   MIDDLETOWN       NY   PORTLAND          OR   MEMPHIS          TN
   POUGHKEEPSIE     NY   PORTLAND          OR   HOUSTON          TX
   LAKE GROVE       NY   BEND              OR   EL PASO          TX
   MASSAPEQUA       NY   ROSEBURG          OR   DALLAS           TX
   NANUET           NY   ALBANY            OR   HOUSTON          TX
   ROCHESTER        NY   PITTSBURGH        PA   LEWISVILLE       TX
   REGO PARK        NY   LANGHORNE         PA   FRISCO           TX
   VICTOR           NY   EXTON             PA   HOUSTON          TX
   CLAY             NY   PHILADELPHIA      PA   SAN ANTONIO      TX
   STATEN ISLAND    NY   WHITEHALL         PA   HOUSTON          TX
   WHITE PLAINS     NY   UPPER DARBY       PA   AUSTIN           TX
   YONKERS          NY   PITTSBURGH        PA   SAN ANTONIO      TX
   JOHNSON CITY     NY   PITTSBURGH        PA   PASADENA         TX
   E NORTHPORT      NY   PITTSBURGH        PA   MESQUITE         TX
   ROCHESTER        NY   WILLOW GROVE      PA   HOUSTON          TX
   VALLEY STREAM    NY   BENSALEM          PA   CRP CHRSTI       TX
   BUFFALO          NY   SCRANTON          PA   HOUSTON          TX
   ROCHESTER        NY   MONACA            PA   FRIENDSWOOD      TX
   AUBURN           NY   LANCASTER         PA   FORT WORTH       TX
   MASSENA          NY   MEDIA             PA   SAN ANTONIO      TX
   PLATTSBURGH      NY   ERIE              PA   EL PASO          TX
   ITHACA           NY   GREENSBURG        PA   BAYTOWN          TX
   NEWBURGH         NY   WEST MIFFLIN      PA   HOUSTON          TX
   NEW HARTFORD     NY   NORTH WALES       PA   HUMBLE           TX
   HORSEHEADS       NY   KING OF PRUSSIA   PA   SAN ANTONIO      TX
   BRONX            NY   WASHINGTON        PA   ARLINGTON        TX
   NEW HYDE PARK    NY   DU BOIS           PA   THE WOODLANDS    TX
   STRONGSVILLE     OH   CHAMBERSBURG      PA   PARIS            TX
   COLUMBUS         OH   BLOOMSBURG        PA   TEXAS CITY       TX
   COLUMBUS         OH   POTTSTOWN         PA   LAKE JACKSON     TX
   COLUMBUS         OH   ALTOONA           PA   LAREDO           TX
   TOLEDO           OH   HERMITAGE         PA   MCALLEN          TX
   SPRINGDALE       OH   INDIANA           PA   SAN ANGELO       TX
   ELYRIA           OH   CRANBERRY         PA   COLLEGE STA      TX
   MENTOR           OH   CAGUAS            PR   LUFKIN           TX
   COLUMBUS         OH   SAN JUAN          PR   DENTON           TX
   CANTON           OH   BAYAMON           PR   VICTORIA         TX
   MIDDLEBRG HTS    OH   CAROLINA          PR   SHERMAN          TX
   AKRON            OH   MAYAGUEZ          PR   PORT ARTHUR      TX
   RICHMOND HTS     OH   PONCE             PR   MIDLAND          TX
   DAYTON           OH   HATILLO           PR   SALT LAKE CTY    UT
   CINCINNATI       OH   WARWICK           RI   MURRAY           UT
   NORTH OLMSTED    OH   WOONSOCKET        RI   OGDEN            UT
   NORTH RANDALL    OH   N CHARLESTON      SC   DULLES           VA
   CINCINNATI       OH   GREENVILLE        SC   FALLS CHURCH     VA
   NORTHWOOD        OH   AIKEN             SC   VIRGINIA BCH     VA
   CINCINNATI       OH   ORANGEBURG        SC   ALEXANDRIA       VA
   NEW PHILA        OH   FLORENCE          SC   NEWPORT NEWS     VA
   MARION           OH   MYRTLE BEACH      SC   CHESAPEAKE       VA
   ZANESVILLE       OH   ROCK HILL         SC   NORFOLK          VA
   LANCASTER        OH   MEMPHIS           TN   FAIRFAX          VA
   FINDLAY          OH   CHATTANOOGA       TN   ROANOKE          VA
   ASHTABULA        OH   MEMPHIS           TN   MARTINSVILLE     VA
   FRANKLIN         OH   MEMPHIS           TN   MANASSAS         VA
   TULSA            OK   CHATTANOOGA       TN   CHESAPEAKE       VA
   TULSA            OK   KNOXVILLE         TN   CHRISTIANSBRG    VA

   CITY             ST
   MUSKOGEE         OK
   S BURLINGTON     VT
   RUTLAND          VT
   SEATTLE          WA
   SPOKANE          WA
   SPOKANE          WA
   SEATTLE          WA
   REDMOND          WA
   FEDERAL WAY      WA
   LYNNWOOD         WA
   TACOMA           WA
   TUKWILA          WA
   EVERETT          WA
   E WENATCHEE      WA
   CHEHALIS         WA
   BELLINGHAM       WA
   ABERDEEN         WA
   KELSO            WA
   WALLA WALLA      WA
   BROOKFIELD       WI
   GREENDALE        WI
   FOND DU LAC      WI
   RACINE           WI
   MILWAUKEE        WI
   SHEBOYGAN        WI
   WAUSAU           WI
   BARBOURSVILLE    WV
   CHARLESTON       WV
   WESTOVER         WV
   BLUEFIELD        WV
   MARTINSBURG      WV
   BRIDGEPORT       WV
   CASPER           WY
   CHEYENNE         WY

SOURCE: Sears, Roebuck and Co.

CONTACT: John P. Reilly of KB Toys, +1-413-496-3427,
jreilly@kbtoys.com , or Cory Rutt of Sears, Roebuck and Co., +1-847-286-2883,
crutt@sears.com

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