1. Indiana University

2. is... is... Family Oriented, Specialty Department StoreFamily Oriented, Specialty Department Store Targeted towards Middle Income CustomersTargeted towards Middle Income Customers Value OrientedValue Oriented Name Brand MerchandiseName Brand Merchandise ConvenienceConvenience

3. Positioned To Serve Customers Who Shop Department Stores As Well As Discount Stores Customers who want more value Customers Trading Up to Buy Name Brand Department Stores Discounters Kohl’s The Middle Market Customer

4. is Convenient is Convenient

5. is Family Oriented is Family Oriented

6. is National Brands with Value is National Brands with Value

7. is America’s #1 Retailer... Sales Growth is America’s #1 Retailer... Sales Growth ($ Millions) Comp % Inc. 10.5% 8.3% 6.1% 5.9% 11.3% 10.0% 7.9% 7.9%

8. is America’s #1 Retailer... Holiday 2000 is America’s #1 Retailer... Holiday 2000 AVERAGE COMP STORE SALES GROWTH (%)

9. is America’s #1 Retailer... vs. other Direct Competitors is America’s #1 Retailer... vs. other Direct Competitors AVERAGE COMP STORE SALES GROWTH 1995 - 1999 (%)

10. is America’s #1 Retailer... Stock Growth is America’s #1 Retailer... Stock Growth SPLIT

11. Existing Stores (Opened more than 12 months) Store Closings New Store Openings (Opened less than 12 months) is America’s #1 Retailer... Physical Store Growth is America’s #1 Retailer... Physical Store Growth # of Stores 79 90 108 128 150 182 213 259 319 374-379 Sq. Ft. Growth 16% 24% 23% 20% 25% 21% 24% 26% 18-19%

12. is America’s #1 Retailer… Store Growth is America’s #1 Retailer… Store Growth 2001 New States 1992 - 2000 States ND SD NE KSMO IA KY VA PA NJ MD DE NC WV MN WI IL IN OH MI GA CT TX CO TN NY OK AK

13. Corporate Corporate Sales and Inventory Levels for Stores Budget and Plan for New Store Openings Participate in System Upgrade Training Sessions Allocation of Fashion and Basic Merchandise Pre-Season, In-Season, Post-Season Analysis Analysis of Top Trending Markets/Stores Key Item and Core Business Planning Vendor Relationships Average Analyst Manages: $100.0 million in inventory 3,500 Items 320+ Stores 55-60 New Store Openings per year MERCHANDISE ANALYST

14. Corporate Training Overview Orientation Corporate Mentors 2 Weeks Classroom Learning 2 Weeks Store Assignment 8 Weeks Classroom and Buying Office Training System Training Buying Office Functions