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<p align=3Dcenter style=3D'text-align:center'><b><span style=3D'font-size:1=
3.5pt;
font-family:Arial;color:blue'>After Firing, More Heat for Sears<br>
Ex-worker was Critic of Company<br>
</span></b><span class=3DGramE><b><i><span style=3D'font-size:10.0pt;font-f=
amily:
Arial;color:green'>By</span></i></b></span><b><i><span style=3D'font-size:1=
0.0pt;
font-family:Arial;color:green'> Becky <span class=3DSpellE>Yerak</span> - T=
ribune
staff reporter - <st1:City w:st=3D"on"><st1:place w:st=3D"on">Chicago</st1:=
place></st1:City>
Tribune<br>
January 12, 2005</span></i></b><span style=3D'font-family:Arial'><o:p></o:p=
></span></p>

<p><span style=3D'font-size:10.0pt;font-family:Arial'>A tool saleswoman at a
Sears, Roebuck and Co. store in <st1:City w:st=3D"on">Indianapolis</st1:Cit=
y>
said she was fired for publicly criticizing the <st1:place w:st=3D"on">Hoff=
man
 Estates</st1:place> department store chain and voicing her concerns about =
its
proposed merger with Kmart Holding Corp. </span><span style=3D'font-family:=
Arial'><o:p></o:p></span></p>

<p><span style=3D'font-size:10.0pt;font-family:Arial'>Carmen Liggett, who f=
or the
past four years worked up to 35 hours a week in Sears' tool department, has
been a vocal critic of Sears at its annual shareholder meetings and in other
venues. </span><span style=3D'font-family:Arial'><o:p></o:p></span></p>

<p><span style=3D'font-size:10.0pt;font-family:Arial'>Working at the Sears =
store
at Lafayette Square Mall on Dec. 30, Liggett, 52, said she was summoned to a
meeting by a manager and told that Sears appreciated her service but determ=
ined
that she was no longer needed. </span><span style=3D'font-family:Arial'><o:=
p></o:p></span></p>

<p><span style=3D'font-size:10.0pt;font-family:Arial'>Liggett said she aske=
d for
an explanation but wasn't given one. Sears cut her loose, she said, despite=
 a
spotless work record. In fact, she said she was named her store's employee =
of
the month in September and received a 6 percent raise. </span><span
style=3D'font-family:Arial'><o:p></o:p></span></p>

<p><span style=3D'font-size:10.0pt;font-family:Arial'>Sears declined to com=
ment
on <span class=3DSpellE>Liggett's</span> claims. </span><span style=3D'font=
-family:
Arial'><o:p></o:p></span></p>

<p><span style=3D'font-size:10.0pt;font-family:Arial'>&quot;We respect the
privacy of current and former employees and can't discuss this personnel ma=
tter
further,&quot; a spokesman said. </span><span style=3D'font-family:Arial'><=
o:p></o:p></span></p>

<p><span style=3D'font-size:10.0pt;font-family:Arial'>Liggett said her husb=
and,
Doug, was fired by Sears in October 2002 after more than 30 years at the
company. His last job was running a <st1:place w:st=3D"on"><st1:PlaceName w=
:st=3D"on">Sears</st1:PlaceName>
 <st1:PlaceName w:st=3D"on">Auto</st1:PlaceName> <st1:PlaceType w:st=3D"on"=
>Center</st1:PlaceType></st1:place>.
</span><span style=3D'font-family:Arial'><o:p></o:p></span></p>

<p><span style=3D'font-size:10.0pt;font-family:Arial'>&quot;They said he fa=
iled
to answer the phone in three rings or less 100 percent of the time,&quot;
Liggett said. </span><span style=3D'font-family:Arial'><o:p></o:p></span></=
p>

<p><span style=3D'font-size:10.0pt;font-family:Arial'>At last May's shareho=
lder
meeting, the couple spoke up at least four times. </span><span
style=3D'font-family:Arial'><o:p></o:p></span></p>

<p><span style=3D'font-size:10.0pt;font-family:Arial'>Early in the meeting,
Carmen Liggett criticized everything from the compensation of directors to =
the
changing pay and commission structures of store workers. </span><span
style=3D'font-family:Arial'><o:p></o:p></span></p>

<p><span style=3D'font-size:10.0pt;font-family:Arial'>During the
question-and-answer period at the end of the meeting, Doug Liggett compared
Sears Chief Executive Officer Alan Lacy to both the captain of the Titanic =
and
Captain Ahab, the &quot;Moby Dick&quot; character doomed in his effort to s=
lay
the great white whale. He also called <span class=3DSpellE>Lacy's</span> ef=
forts
to turn around Sears a &quot;monumental failure.&quot; </span><span
style=3D'font-family:Arial'><o:p></o:p></span></p>

<p><span style=3D'font-size:10.0pt;font-family:Arial'>Carmen Liggett kept u=
p the heat
by attending an employee party last month in <st1:City w:st=3D"on"><st1:pla=
ce
 w:st=3D"on">Indianapolis</st1:place></st1:City> where she encouraged worke=
rs to
attend Sears' next annual shareholders' meeting and to voice concerns about=
 the
company's direction and the performance of management and the board of
directors. She also solicited the proxies of those who didn't plan to atten=
d or
vote at the still-unscheduled meeting. </span><span style=3D'font-family:Ar=
ial'><o:p></o:p></span></p>

<p><span style=3D'font-size:10.0pt;font-family:Arial'>Also, in a Dec. 2 pos=
ting
on Proxymatters.com, Liggett wrote a scathing review of Sears' management. =
</span><span
style=3D'font-family:Arial'><o:p></o:p></span></p>

<p><span style=3D'font-size:10.0pt;font-family:Arial'>&quot;Lacy and the bo=
ard of
directors should be charged with breach of fiduciary duty,&quot; she said. =
She
criticized the compensation that he'll receive after the Kmart deal. </span=
><span
style=3D'font-family:Arial'><o:p></o:p></span></p>

<p><span style=3D'font-size:10.0pt;font-family:Arial'>In a recent Securitie=
s and
Exchange Commission filing, Sears said that when Lacy takes over the new Se=
ars
Holdings Corp.--the combined entity of Kmart and Sears--his base salary will
increase to at least $1.5 million from $1 million in 2003. And if he is
terminated without cause, he receives two times his annual base salary and
target bonus, plus accelerated vesting of equity awards and two more years =
of
benefits </span><span style=3D'font-family:Arial'><o:p></o:p></span></p>

<p><span style=3D'font-size:10.0pt;font-family:Arial'>Since her firing, Lig=
gett
has tried to rally visitors of various chat rooms to e-mail statements of
support to newspapers. </span><span style=3D'font-family:Arial'><o:p></o:p>=
</span></p>

<p><span style=3D'font-size:10.0pt;font-family:Arial'>In other <span class=
=3DGramE>Sears</span>
personnel news, the company confirmed Tuesday that it has eliminated 30 of =
900
jobs in its information technology department in a cost-cutting move. The 30
laid-off employees worked in &quot;application services management,&quot;
meaning they helped maintain Sears' IT systems. </span><span style=3D'font-=
family:
Arial'><o:p></o:p></span></p>

<p><span style=3D'font-size:10.0pt;font-family:Arial'>Last March, Sears
outsourced 260 IT jobs.</span><span style=3D'font-family:Arial'><o:p></o:p>=
</span></p>

<p class=3DMsoNormal><o:p>&nbsp;</o:p></p>

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