FLEMING TO END KMART DELIVERIES

DALLAS -- Fleming here said last week it had reached an agreement with Kmart Corp., Troy, Mich., to stop deliveries to the bankrupt mass merchandiser's stores on March 8, but Fleming added that it continues to dispute the language of the termination agreement of its former largest customer.

ld SN, "Fleming filed a motion with the court asking the court to clarify the record on the facts."

A Fleming attorney said the company was concerned that certain statements in Kmart's original motion to terminate the distribution agreement could be used in later claims negotiations between the two companies, according to published reports. Kmart attorneys agreed not to use the statements from the earlier motions in future actions, the reports said.

In January 2001, Kmart and Fleming had announced a 10-year supply agreement that would produce about $4.5 billion worth of business.