POS Catalina Marketing Corp

Catalina Marketing Corporation (NYSE: POS), the global leader in behavior-based marketing across multiple industries, announced that it has signed an agreement with Kmart, a subsidiary of Sears Holdings Corporation, to install the Catalina Marketing Network(R), the company's consumer checkout communication system, at the registers of an additional 1,000 Kmart stores nationwide. The system will deliver relevant manufacturer communications to Kmart customers. "We are looking forward to the expansion and a successful partnership with Kmart, one of the largest mass retailers in the country," said L. Dick Buell, chief executive officer of Catalina Marketing Corporation. "By utilizing the Catalina Marketing Network(R) system in all Super Kmarts, and now most Kmart stores, the retailer will quickly see the benefits of offering high value incentives and messages to the consumer, which will motivate repeat visits, build loyalty and generate a trial of new products, departments and services." The expansion in Kmart stores provides Catalina with a larger presence in a mass-market retailer. Companies that manufacture and market products sold in Kmart can utilize the consumer checkout communication system to reach the right consumer at the right time with the right message. Catalina Marketing anticipates that the installation of the Kmart stores will be completed by fall 2006. "This agreement will give our customers the ability to make their shopping dollars go further," said Peter Whitsett, senior vice president and general merchandising manager for Kmart. "We also see this as the perfect vehicle to promote all parts of our stores, including non-food areas, as well as cross-promote to other formats." About Catalina Marketing Corporation Based in St. Petersburg, Fla., Catalina Marketing Corporation (www.catalinamarketing.com) was founded over 20 years ago based on the premise that targeting communications based on actual purchase behavior would generate more effective consumer response. Today, Catalina Marketing combines unparalleled insight into consumer behavior with dynamic consumer access. This combination of insight and access provides marketers with the ability to execute behavior-based marketing programs, ensuring that the right consumer receives the right message at exactly the right time. Catalina Marketing offers an array of behavior-based promotional messaging, loyalty programs and direct-to-patient information. Personally identifiable data that may be collected from the company's targeted marketing programs, as well as its research programs, are never sold or provided to any outside party without the express permission of the consumer. About Kmart Kmart, a wholly owned subsidiary of Sears Holdings Corporation (NASDAQ: SHLD), is a mass merchandising company that offers customers quality products through a portfolio of exclusive brands that include Thalia Sodi, Jaclyn Smith, Joe Boxer, Martha Stewart Everyday and Route 66. For more information visit the company's website at www.kmart.com or the Sears Holdings Corporation website at www.searsholdings.com. Certain statements in the preceding paragraphs are forward-looking, and actual results may differ materially. Statements not based on historic facts involve risks and uncertainties, including, but not limited to, the changing market for promotional activities, especially as it relates to policies and programs of packaged goods and pharmaceutical manufacturers and retailers, government and regulatory statutes, rules, regulations and policies, the effect of economic and competitive conditions and seasonal variations, actual promotional activities and programs with the company's customers, the pace of installation of the company's store network in retail locations including mass-market retailers, the success of new services and businesses and the pace of their implementation, the company's ability to maintain favorable client relationships, the outcome and impact of an ongoing SEC investigation into certain of the company's prior fiscal years, and the outcome and impact of the pending shareholder class action and derivative lawsuits.