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   June 11, 2007

   VIA CERTIFIED MAIL

   RETURN RECEIPT REQUESTED

   Kmart - Store #7418

   4330 Camino De La Plaza

   San Diego, CA   92173

   Kmart

   c/o Sears Holding Corporation

   3333 Beverly Road

   Hoffman Estates, IL 60179

   Attn.: William R. Harker

   Senior Vice President and General Counsel

   Re: File No. EB-07-SD-162

   Citation No.: C20073294015

   Dear Retailer:

   This is an official CITATION, issued pursuant to Section 503(b)(5) of the
   Communications Act of 1934, as amended ("Act"), 47 U.S.C. S 503(b)(5), to
   Kmart - Store #7418 and  Kmart c/o Sears Holding Corporation
   (collectively "Kmart") for failure to provide appropriate Consumer Alert
   disclosures on analog tuner only television receiving equipment in
   violation of Section 15.117(k) of the Commission's Rules ("Rules"), 47
   C.F.R. S 15.117(k). As explained below, future violations of the
   Commission's rules in this regard may subject your company to monetary
   forfeitures.

   On June 7, 2007, the Enforcement Bureau's San Diego Office visited Kmart -
   Store #7418 at 4330 Camino De La Plaza, San Diego, California,  and
   observed that  Kmart  did not have the proper Consumer Alert label
   displayed on television equipment that contained an analog tuner but not a
   digital tuner at the point of sale.

   Section 15.117(k) of the Commission's Rules states:


     (k) The following requirements apply to all  responsible parties, as    
     defined in S2.909 of this chapter, and any person that displays or      
     offers for sale or rent television receiving equipment that is not      
     capable of receiving, decoding and tuning digital signals.              
                                                                             
     (1) Such parties and persons shall place conspicuously and in close     
     proximity to such television broadcast receivers a sign containing, in  
     clear and conspicuous print, the Consumer Alert disclosure text         
     required by subparagraph (3). The text should be in a size of type      
     large enough to be clear, conspicuous and readily legible, consistent   
     with the dimensions of the equipment and the label. The information     
     may be printed on a transparent material and affixed to the screen, if  
     the receiver includes a display, in a manner that is removable by the   
     consumer and does not obscure the picture, or, if the receiver does     
     not include a display, in a prominent location on the device, such as   
     on the top or front of the device, when displayed for sale, or the      
     information in this format may be displayed separately immediately      
     adjacent to each television broadcast receiver offered for sale and     
     clearly associated with the analog-only model to which it pertains.     
                                                                             
     (2) If such parties and persons display or offer for sale or rent such  
     television broadcast receivers via direct mail, catalog, or electronic  
     means, they shall prominently display in close proximity to the images  
     or descriptions of such television broadcast receivers, in clear and    
     conspicuous print, the Consumer Alert disclosure text required by       
     subparagraph (3). The text should be in a size large enough to be       
     clear, conspicuous, and readily legible, consistent with the            
     dimensions of the advertisement or description.                         
                                                                             
     (3) "CONSUMER ALERT                                                     
                                                                             
     This television receiver has only an analog broadcast tuner and will    
     require a converter box after February 17, 2009, to receive             
     over-the-air broadcasts with an antenna because of the Nation's         
     transition to digital broadcasting. Analog-only TVs should continue to  
     work as before with cable and satellite TV services, gaming consoles,   
     VCRs, DVD players, and similar products. For more information, call     
     the Federal Communications Commission at 1-888-225-5322 (TTY:           
     1-888-835-5322) or visit the Commission's digital television website    
     at: www.dtv.gov."                                                       


   Accordingly, it appears that Kmart has violated Section 15.117(k) of the
   Rules by failing to place conspicuously and in close proximity to the
   following equipment in a clear and conspicuous print, the Consumer Alert
   label required under Section 15.117(k):

    1. RCA, TV, model # 13V420T

    2. Toshiba, TV, model # MD20F52

    3. RCA, TV, model # 20V500T

   We caution you that failure to display the appropriate Consumer Alert
   label on any television receiving equipment that is not capable of
   receiving, decoding and tuning digital signals would constitute a further
   violation of Section 15.117(k) of the Rules.

   If, after receipt of this citation, Kmart violates the Communications Act
   or the Commission's rules in any manner described herein, the Commission
   may impose monetary forfeitures not to exceed $11,000 for each such
   violation or each day of a continuing violation up to $97,500 for a single
   continuing violation.

   If you choose to do so, you may respond to this citation within 10 days
   from the date of this letter either through (1) a personal interview at
   the Commission's Field Office nearest to your place of business, or (2) a
   written statement. Your response should specify the actions that  Kmart is
   taking to ensure that it does not violate the Section 15.117(k) of the
   Commission's rules in the future.

   Kmart may request an interview at the closest FCC Office, which is Federal
   Communications Commission, 4542 Ruffner Street, Suite 370, San Diego,
   California 92111. You may contact this office by telephone, (XXX)
   XXXX-XXXXto schedule this interview, which must take place within 10 days
   of this Citation. Kmart may also submit a written statement to the above
   address within 10 days of the date of this Citation. Any written
   statements should specify what actions have been taken to correct the
   violations outlined herein. Please reference file number EB-07-SD-162 when
   corresponding with the Commission.

   Under the Privacy Act of 1974, 5 U.S.C. S 552a(e)(3), we are informing you
   that the Commission's staff will use all relevant material information
   before it, including information that you disclose in your interview or
   written statement, to determine what, if any, enforcement action is
   required to ensure your compliance with the Communications Act and the
   Commission's rules.

   The knowing and willful making of any false statement, or the concealment
   of any material fact, in reply to this citation is punishable by fine or
   imprisonment under 18 U.S.C. S 1001.

   Thank you in advance for your anticipated cooperation.

   Sincerely,

   FEDERAL COMMUNICATIONS COMMISSION

   William R. Zears Jr.

   District Director

   San Diego District Office, Western Region

   Enforcement Bureau

   See 47 C.F.R. S 1.80(b)(3).

   47 U.S.C. S 503(b)(5).

   2

                       FEDERAL COMMUNICATIONS COMMISSION

                             WASHINGTON, D.C. 20554