BlueLight.com Totally Free Internet Service Tops One Million Subscriber Mark, Breaks Previous Industry Record BlueLight.com Now Fastest Growing ISP in Internet History SAN FRANCISCO -- March 22, 2000 -- BlueLight.com™ has gone platinum in record time with the signing of the one-millionth new subscriber to its Totally Free Internet Service. BlueLight.com (www.bluelight.com), an independent e-commerce company formed by Kmart (NYSE: KM) and SOFTBANK Investment Capital with investments Martha Stewart Living Omnimedia, Inc. (NYSE: MSO) and a relationship with Yahoo! Inc. (NASDAQ: YHOO), today announced it has surpassed the one million-subscriber mark for its Totally Free Internet Service powered by Spinway.com. This important milestone, achieved in just 14 weeks, comes two months ahead of company predictions and easily surpasses previous records set by all paid and no-cost Internet service providers (ISPs). BlueLight.com expects it will reach more than three million subscribers by year-end. "BlueLight.com and Kmart are creating an unprecedented E-commerce shopping experience that puts value and customer satisfaction first," said Floyd Hall, Chairman, President and CEO of Kmart. "You don't have to pay to shop at your local Kmart, so why pay to enjoy the many benefits and great, online values available through the Internet? At BlueLight.com the savings begin the minute shoppers subscribe." "Our key tool in reaching an incredibly wide audience so quickly for the BlueLight.com Totally Free Internet Service is the power of our investment partners and our technology," said Mark H. Goldstein, CEO of BlueLight.com. "Our partnerships represented by Kmart, Yahoo!, Martha Stewart Living Omnimedia and Spinway.com give us unprecedented merchandise and marketing strength. Quality goods, Web design and marketing skills are all at our disposal. These relationships will drive BlueLight.com to be one of the largest ISPs in the country, and will help narrow the gap between those Americans who have access to the Internet and the vast number who still do not." Through Kmart, BlueLight.com has been featured in weekly advertising circulars that reach 72 million households each week. In-store, where every week more than 30 million consumers do their shopping, millions of CD-ROMs featuring BlueLight.com Totally Free Internet Service software have been snatched up by Kmart customers. Kmart stores also feature marketing materials directing consumers to download the software online at www.bluelight.com or call 1-888-945-9255 and have it mailed directly to them at no additional charge. The BlueLight.com service is also distributed and promoted throughout the Yahoo!™ network of properties. In addition to the marketing and promotional relationship with Yahoo!, BlueLight.com users have access to co-branded, personalized content and integrated services from Yahoo!, including My Yahoo!, Yahoo! Mail and Yahoo! Messenger. Further, the BlueLight.com Totally Free Internet Service has been chosen as the free ISP of choice by marthastewart.com and is actively being promoted through Martha Stewart Living Omnimedia, Inc. properties, including television, magazine and online. A survey of BlueLight.com subscribers found that 40% are new to the Internet or did not have Internet access when they signed on. By 2003, more than 13 million U.S. online households are expected to actively use free ISPs, according to a new report from Jupiter Communications, Inc., the worldwide authority on Internet commerce. Of that group, 8.8 million US households will use a free ISP as their primary access to the Internet, representing 13% of the total US online consumer market. BlueLight.com is currently the highest-rated major ISP in the United States according to Epinions.com, the premier site for honest, unedited consumer reviews (www.epinions.com/cmsw-BlueLight). The technology infrastructure and access software for BlueLight.com has been made available by Spinway.com, a leading free Internet access partner and advertising solutions company. The BlueLight.com ISP is accessible by 96% of the United States population -- the largest ISP coverage currently available in this country. The service boasts more than 3,000 local access numbers nationwide and free 24-hour customer service. BlueLight.com's free ISP is a key component to the company's business model. By developing a strong consumer base through its Totally Free Internet Service, BlueLight.com brings the Kmart shopper and others online, and is able to build a trusted relationship based on real tangible value. Already, BlueLight.com attracts a larger unique audience than both Wal-Mart.com and Target.com, according to the Internet ratings service Nielsen//NetRatings*. Upon the launch of BlueLight.com's full shopping site, the company will serve this audience and the Internet at large with a full-service online shopping experience based on Kmart's core attributes and featuring special values on goods and services, including exclusive merchandise such as Martha Stewart Everyday and Sesame Street products. The current site is a "preview" of the upcoming shopping destination. current site is a "preview" of the upcoming shopping destination. Kmart Corporation serves America with 2,172 Big Kmart, Super Kmart and 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 through the World Wide Web at www.bluelight.com in the About Kmart section. BlueLight.com was formed in 1999 by Kmart Corporation and SOFTBANK Venture Capital with investments by Martha Stewart Living Omnimedia, Inc and a relationship with Yahoo! Inc. By servicing Kmart's vast consumer base, BlueLight.com is uniquely positioned to become an industry-leading integrated e-commerce company. BlueLight.com offers online shopping and totally free Internet access nationwide. For more information, visit www.bluelight.com.

* Based on February Nielsen//NetRatings data EDITOR NOTE: Photos of BlueLight.com's millionth subscriber, Mr. Levi Bierwiler of Billings, Montana, are currently available at AP Photo Wire and online in the press area at www.bluelight.com # # #