Exhibit 1: Selected Excerpts Sears, Roebuck and Co.

, 1997 Description of Business Properties The following table sets forth information concerning stores operated by Domestic Operations. Full-line Stores 460 325 48 800 16 (10) 806 27 (12) 821 21 (9) 833 Auto Stores Home Stores Tires Parts HomeLife Hardware Dealer 598 129 31 13 2 491 17 1,007 37 (13) 1,031 40 (13) 1,058 68 (20) 1,106 486 384 215 (17) 582 67 (22) 627 90 (102) 615 58 12 72 26 (1) 97 12 (2) 107 3 (9) 101 228 14 80 45 (17) 108 136 (15) 229 33 (7) 255 574 285 98 (8) 375 120 (26) 469 124 (17) 576

Stores at January 3, 1998: Leased Operating Leases Capital Leases Independently owned and operated Dealer stores Total stores at fiscal year-end 1994 Stores opened during fiscal 1995 Stores closed during fiscal 1995 1995 Stores opened during fiscal 1996 Stores closed during fiscal 1996 1996 Stores opened during fiscal 1997 Stores closed during fiscal 1997 1997 Gross retail area at fiscal year end (square feet in millions) 1997 1996 1995 Retail selling area at fiscal year end (square feet in millions) 1997 1996 1995

Other 18 26 70 7 (6) 71 9 (20) 60 (16) 44

Total 1,251 1,614 91 574 2,698 444 (72) 3,070 411 (110) 3,371 339 (180) 3,530

110.3 108.4 105.6

15.9 15.2 15.0

6.6 6.9 6.4

3.6 3.8 3.4

8.2 6.1 2.0

4.7 3.8 2.9

1.7 2.0 2.0

151.0 146.2 137.3

71.9 69.9 66.8

2.2 2.1 2.1

4.7 4.7 4.5

3.0 3.2 2.9

6.5 5.6 1.7

3.1 2.6 1.9

1.3 1.5 1.5

92.7 89.8 81.4

Retail Store Revenues per Selling Square Foot 1997 1996 $318 $321

1995 $323

Exhibit 3: Sears, Roebuck and Co., 1997 Financial Statements Statements of Income (millions fiscal years ended December 31) 1997 Revenues Merchandise sales and services Credit revenues Total revenues Costs and expenses Cost of sales, buying and occupancy Selling and administrative Provision for uncollectible accounts Depreciation and amortization Interest Reaffirmation charge Total costs and expenses Operating income Other income Income before income taxes Income taxes Income from continuing operations Discontinued operations Net Income 1996 1995

$ 36,371 4,925 41,296 26,769 8,331 1,532 786 1,409 475 39,302 1,994 106 2,100 912 1,188 $ 1,188

$ 33,751 4,313 38,064 24,889 8,059 971 697 1,365 35,981 2,083 22 2,105 834 1,271 $ 1,271

$ 31,133 3,702 34,835 23,160 7,428 589 580 1,373 33,130 1,705 23 1,728 703 1,025 776 $ 1,801

Exhibit 3: Sears, Roebuck and Co., 1997 Financial Statements Balance Sheets (millions fiscal years ended December 31) 1997 Assets Current assets Cash and cash equivalents Retained interest in transferred credit card receivables Credit card receivables Less: Allowance for uncollectible accounts Other receivables Merchandise inventories Prepaid expenses and deferred charges Deferred income taxes Total current assets Property and equipment Land Buildings and improvements Furniture, fixtures, and equipment Capitalized leases Less accumulated depreciation Total property and equipment, net Deferred income taxes Other assets Total assets Liabilities Current liabilities Short-term borrowings Current portion of LT debt and capitalized lease obligations Accounts payable and other liabilities Unearned revenues Other taxes Total current liabilities Long-term debt and capitalized lease obligations Postretirement benefits Minority interest and other liabilities Total liabilities Shareholders' equity Common shares ($.75 par value, 1,000 shares authorized 390.9 and 391.4 shares outstanding) Capital in excess of par value Retained income Treasury stock-at cost Minimum pension liability Deferred ESOP expense Cumulative translation adjustments Total shareholders' equity Total liabilities and shareholders' equity 1996

358 3,316 20,956 1,113 19,843 335 5,044 956 830 30,682

660 2,260 20,104 801 19,303 335 4,646 348 895 28,447

487 5,420 4,919 498 11,324 4,910 6,414 666 938 $ 38,700

445 5,080 4,279 433 10,237 4,359 5,878 905 937 $ 36,167

$ 5,208 2,561 6,637 830 554 15,790 13,071 2,564 1,413 32,838

$ 3,533 2,737 7,225 840 615 14,950 12,170 2,748 1,354 31,222

323 3,598 4,158 (1,702) (217) (204) (94) 5,862 $ 38,700 $

323 3,618 3,330 (1,655) (277) (230) (164) 4,945 36,167

Exhibit 3: Sears, Roebuck and Co., 1997 Financial Statements Statement of Cash Flows (millions fiscal years ended December 31) 1997 Cash flows from operating activities Net income Adjustments to reconcile net income to net cash provided by (used in) operating activities Depreciation, amortization and other non-cash items Provision for uncollectible accounts Gain on sales of property and investments Change in (net of acquisitions): Deferred income taxes Retained interest in transferred credit card receivables Credit card receivables Merchandise inventories Other operating assets Other operating liabilities Discontinued operations Net cash (used in) provided by operating activities Cash flows from investing activities Acquisition of businesses, net of cash acquired Proceeds from sales of property and investments Purchases of property and equipment Discontinued operations Net cash used in investing activities Cash flows from financing activities Proceeds from long-term debt Repayments of long-term debt Increase (decrease) in short-term borrowings, primarily 90 days or less Termination of interest rate swap agreements Repayments of ESOP loan Preferred stock redemption Common shares purchased for employee stock plans Common shares issued for employee stock plans Dividends paid to shareholders Net cash provided by financing activities Effect of exchange rate changes on cash and cash equivalents Net (decrease) increase in cash and cash equivalents 1996 1995

$ 1,188

$ 1,271

$ 1,801

807 1,532 (122) 273 (1,056) (2,285) (475) (160) (258) (556) (138) 394 (1,328) (1,072) 3,920 (3,299) 1,834 (633) 16 (170) 103 (441) 1,330 (4) (302)

774 971 (36) (31) 3,318 (5,739) (475) 111 1,025 1,189 (296) 42 (1,189) (1,443) 4,683 (1,832) (1,814) 21 (325) (164) 134 (394) 309 (1) 54

631 589 (35) 50 (2,036) (534) 30 (106) 801 (776) 415 (53) 41 (1,183) 483 (712) 2,588 (1,124) (637) 44 97 (607) 361 (6) 58

Source: Sears, Roebuck and Co. 1997 Annual Report

Exhibit 8: Wal-Mart Stores, Inc., 1997 Description of Business Store Count Fiscal Year Ended Jan 31 Balance Forward 1993 1994 1995 1996 1997 1998 Net Square Footage Fiscal year Ended Jan 31, Balance Forward 1993 1994 1995 1996 1997 1998
a b

Wal-Mart Discount Stores Conversionsa Opened Closed 159 141 109 92 59 37 1 2 5 2 2 1 24 37 69 80 92 75

Total 1,714 1,848 1,950 1,985 1,995 1,960 1,921

Wal-Mart Supercenters Opened Total 24 38 75 92 105 97 10 34 72 147 239 344 441

Sam's Clubs Opened 48 162 21 9 9 8 Closed 0 1 12 2 6 1 Total 256 417 426 433 436 443 Openedb 208 207 304 136 113 81 67 Closed 1 3 17 4 8 2

Total Ending Balance 1,932 2,138 2,439 2,558 2,667 2,740 2,805

Wal-Mart Discount Stores Wal-Mart Supercenters Sam's Clubs Net Additions Total Net Additions Total Net Additions Total 128,115,368 1,914,246 23,259,348 19,251,060 147,366,428 4,037,493 5,951,739 7,444,530 30,703,878 16,185,442 163,551,870 6,762,080 12,713,819 19,670,804 50,374,682 10,109,978 173,661,848 14,087,725 26,801,544 1,335,742 51,710,424 8,188,223 181,850,071 16,791,559 43,593,103 825,020 52,535,444 (103,486) 181,746,585 19,661,948 63,255,051 298,692 52,834,136 (2,411,149) 179,335,436 17,076,582 80,331,633 716,150 53,550,286

Total Net Additions 30,733,083 42,618,326 25,533,445 25,804,802 19,857,154 15,381,583

Sq. Ft c 153,288,962 184,022,045 226,640,371 252,173,816 277,978,618 297,835,772 313,217,355

Sales Per Sq. Ft. 325.86 324.42 336.10 335.13 337.35 348.49

Wal-Mart discount store locations relocated or expanded as Wal-Mart Supercenters Total opened net of conversions of Wal-Mart discount stores to Wal-Mart Supercenters c Includes only stores and clubs that were open at least twelve months as of January 31 of the previous year.

Exhibit 9: Wal-Mart Stores, Inc., 1997 Financial Statements Statements of Income (amounts in millions)

Fiscal years ended January 31, Revenues: Net sales Other income-net Costs and expenses: Cost of sales Operating, selling and general administrative Expenses Interest costs: Debt Capital leases Income before income taxes, minority interest and equity in unconsolidated subsidiaries Provision for income taxes: Current Deferred Income before minority interest and equity in unconsolidated subsidiaries Minority interest and equity in unconsolidated subsidiaries Net income $ $

1998 117,958 1,341 119,299 $

1997 104,859 1,319 106,178 $

1996 93,627 1,146 94,773

93,438 19,358 555 229 113,580 5,719 2,095 20 2,115 3,604

83,510 16,946 629 216 101,301 4,877 1,974 (180) 1,794 3,083

74,505 15,021 692 196 90,414 4,359 1,530 76 1,606 2,753

(78) 3,526 $

(27) 3,056 $

(13) 2,740

Note: Wal-Mart follows a common retail convention of ending its fiscal year on January 31 of the following calendar year. This allows the year end to capture all holiday sales and related returns to the stores. Thus, fiscal 1997 ends on January 31, 1998. Sears does not follow this convention.

Exhibit 9: Wal-Mart Stores, Inc., 1997 Financial Statements Statements of Income (amounts in millions) Fiscal years ended January 31, Assets Current assets: Cash and cash equivalents Receivables Inventories At replacement cost Less LIFO reserve Inventories at LIFO cost Prepaid expenses and other Total current assets Property, plant and equipment, at cost: Land Building and improvements Fixtures and equipment Transportation equipment Less accumulated depreciation Net property, plant and equipment Property under capital lease: Property under capital lease Less accumulated amortization Net property under capital leases Other assets and deferred charges Total assets Liabilities and shareholders' equity Current liabilities Accounts payable Accrued liabilities Accrued income taxes Long-term debt due within one year Obligations under capital leases due within one year Total current liabilities Long-term debt Long-term obligations under capital leases Deferred income taxes and other Minority interest Shareholders' equity Preferred stock ($.10 par value; 100 shares authorized, none issued) Common stock ($.10 par value; 5,500 shares authorized, 2,241 and 2,285 issued and outstanding in 1998 and 1997, respectively) Capital in excess of par value Retained earnings Foreign currency translation adjustment Total shareholders' equity Total liabilities and shareholders' equity 1998 1997

1,447 976 16,845 348 16,497 432 19,352 4,691 14,646 7,636 403 27,376 5,907 21,469 3,040 903 2,137 2,426 45,384

883 845 16,193 296 15,897 368 17,993 3,689 12,724 6,390 379 23,182 4,849 18,333 2,782 791 1,991 1,287 39,604

9,126 3,628 565 1,039 102 14,460 7,191 2,483 809 1,938

7,628 2,413 298 523 95 10,957 7,709 2,307 463 1,025

224 585 18,167 (473) 18,503 45,384 $

228 547 16,768 (400) 17,143 39,604

Exhibit 9: Wal-Mart Stores, Inc., 1997 Financial Statements Statement of Cash Flows (amounts in millions) Fiscal years ended January 31, Cash flows from operating activities Net income Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization Increase in accounts receivable (Increase)/decrease in inventories Increase in accounts payable Increase in accrued liabilities Deferred income taxes Other Net cash provided by operating activities Cash flows from investing activities Payments for property, plant and equipment Proceeds from sale of photo finishing plants Acquisitions Other investing activities Net cash used in investing activities Cash flows from financing activities (Decrease)/increase in commercial paper Proceeds from issuance of long-term debt Net proceeds from formation of Real Estate Investment Trust (REIT) Purchase of Company stock Dividends paid Payment of long-term debt Payment of capital lease obligations Other financing activities Net cash (used in)/provided by financing activities Net increase in cash and cash equivalents 1998 1997 1996

$ 3,526

$ 3,056

$ 2,740

1,634 (78) (365) 1,048 1,329 20 9 7,123 (2,636) (1,865) 80 (4,421) 547

1,463 (58) 99 1,208 430 (180) (88) 5,930 (2,643) 464 111 (2,068) (2,458) -

1,304 (61) (1,850) 448 29 76 (303) 2,383 (3,566) 234 (3,332) 660 1,004 (105) (458) (126) (81) 93 987 38

632 (1,569) (208) (611) (481) (554) (541) (94) (74) 143 68 (2,138) (3,062) $ 564 $ 800 $

Source: Wal-Mart Stores, Inc. 1997 Annual Report