Sears Plans Ad Campaign on MSN Network

Sears, Roebuck and Co. and Microsoft Corp. signed a two-year, multi-million
dollar agreement for Sears to advertise across the MSN Network of Internet sites.

Sears will become the largest advertiser on the MSN HomeAdvisor online real estate
service. Spending was not disclosed.

Sears’ online marketing program is designed
to reach a broad consumer audience through banner advertisements, fixed
placements, sponsorships and promotions across a diverse range of MSN Web
sites. The content and category sponsorships will help new home buyers and
established home owners visiting MSN HomeAdvisor find the products and
service offerings and information they need.

Sears and Microsoft also agreed to co-develop editorial content for the “Home
Ownership” section of MSN HomeAdvisor, targeting do-it-yourselfers.

“We are aggressively expanding our online presence, and the MSN network of
Internet services is a powerful vehicle that will help increase our
visibility on the Web and help us drive traffic to sears.com,” said Alice M.
Peterson, vice president and general manager of Sears Online.

In May, Sears began selling more than 2,000 major appliances online. In
April, Sears introduced its PartsDirect site, featuring more
than 4.2 million parts for sale from 400 manufacturers for appliances, power
tools, lawn and garden equipment and home electronics, even for items not
purchased or sold at Sears. In addition, Sears sells 3,500 Craftsman tools
online and plans to expand product offerings later this year.

Sears’ online advertising agency of record, Ogilvy One, will work with Sears to
develop the MSN marketing program.