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JCPenney Announces Launch of American Living, Exclusive Lifestyle Brand

American Living Offers Classic Style and Impeccable Quality at Smart Prices

Largest Merchandise Launch in JCPenney's History -- Spanning 40 Categories of Merchandise for America's Families and Home

PLANO, Texas--(BUSINESS WIRE)--Feb. 20, 2008--J. C. Penney Company, Inc. (NYSE: JCP) today announced the launch of American Living, a new, comprehensive lifestyle brand created exclusively for JCPenney's classic traditional lifestyle customer by Global Brand Concepts, a division of Polo Ralph Lauren.

The largest brand launch in JCPenney's history, the American Living collection includes a full range of apparel for women, men and children, along with footwear, accessories and home furnishings and textiles. Beginning this month, American Living merchandise can be found across JCPenney's integrated shopping channels - in nearly 600 stores, online at jcp.com and catalog.

"American Living truly differentiates JCPenney in the retail marketplace. Nowhere else but JCPenney will customers find this level of updated classic style and impeccable quality at such a smart price," said Myron E. (Mike) Ullman, III, chairman and chief executive officer of JCPenney. "During the past year, hundreds of our Associates have been involved in bringing American Living to life at JCPenney in partnership with Global Brand Concepts. Through their efforts, 40 merchandise categories will be offered to our customers."

Roger Farah, president and chief operating officer of Polo Ralph Lauren, said, "American Living is a unique lifestyle brand that we believe will capture the attention and loyalty of the JCPenney customer now and into the future."

The American Living Collection:

American Living offers stylish fashions for work and weekend, as well as warm and inviting home decor. Along with the classic polo, key items in each department include cable knit sweaters and cotton sundresses in Women's, pinpoint button-downs and sport coats in Men's, khaki pants in Boy's and polo dresses in Girl's. Accessories feature handbags and belts while footwear includes both dress and casual styles. Home features updated styles on classic pieces and includes five bedding collections, bath accessories, window treatments and luggage. American Living, which will form the core of JCPenney's "Best" price offering, will be expanded in coming seasons to include Young Men's, Newborn, Infant and Toddler, intimate apparel, Women's swimwear, fashion jewelry, tabletop, furniture and more.

A Special Home for an Exceptional New Brand:

Emulating an authentic, country store feel, beginning today, American Living merchandise can be found on distinctive white, wooden fixtures across numerous departments of nearly 600 JCPenney stores.

Additionally, three JCPenney stores - Glendale, Calif., Paramus, NJ, and Montrose, Co. - feature American Living "shops," a designated "store-within-a-store" presentation similar to the Company's Sephora Inside JCPenney concept. These "shops" bring cross divisional merchandise statements together, including all apparel and home products among others, into one location, allowing for a true showcase of the full lifestyle offering of American Living. Moving forward, most new stores - beginning with openings in March - will feature American Living merchandise in a similar in-store presentation.

To celebrate the launch of American Living, store customers will be greeted by store Associates wearing red American Living polos, be treated to special American Living shopping bags and be able to view the American Living broadcast commercials on the screens of the stores' customer-facing, point-of-sale terminals.

jcp.com will also feature a special American Living tab in its global navigation taking users to the American Living online store. Serving as a "store-within-a-store," the new American Living section of jcp.com will include all American Living merchandise. Additionally, through jcp.com access on all point-of-sale registers, store Associates at any JCPenney store will be able to assist customers in purchasing American Living merchandise.

JCPenney Launches New American Living Marketing Campaign

As the largest brand launch in Company history, American Living will be supported with unprecedented levels of marketing. JCPenney will introduce American Living on Sunday, Feb. 24, to the more than 40 million viewers of the Academy Awards. Created by Global Brand Concepts and directed by renowned American photographer and filmmaker Bruce Weber, the ads will include a 60 sec. anthem spot, as well as additional 30 sec. spots featuring men's, women's and home merchandise from the collection.

"American Living epitomizes what JCPenney is all about. It elevates the JCPenney brand and supports the idea that 'Every Day Matters' - it's all about enhancing the quality of life for our customers, allowing them to have something truly aspirational at a smart price," said Mike Boylson, chief merchandising officer for JCPenney. "Our new campaign is an invitation for customers to experience American Living - a new reason to shop JCPenney - and discover all that we have to offer."

From baseball, picnics, and trips to the beach to tractors, pick-up trucks and life on the farm, the new campaign brings the aspiration of American Living to life by capturing the little, every day moments of American culture. The campaign's broadcast commercials further celebrate the American spirit through the vocal collaboration of rock legend and former Led Zeppelin singer Robert Plant and 21-time Grammy-award winner, country-bluegrass queen Alison Krauss with the song "Killing the Blues" from their new album, Raising Sand. The 60 sec. American Living anthem spot will also air throughout the spring during previews for PG and PG-13 movies in cinemas across the country. Following the Academy Awards, viewers can expect to see the ads air over the next few weeks on top prime and cable television programming.

American Living will be introduced to JCPenney's Hispanic customers when the ads air Feb. 21 on the country's leading Spanish-language television network, Univision, during JCPenney's exclusive retail sponsorship of Premio lo Nuestro a la Musica Latina, the longest-running and most popular award show for the U.S. Hispanic audience.

The launch of American Living will also be supported by a strategic e-mail campaign, as well as direct mail, specialty catalogs and weekly sales circulars. A special sitelet, www.americanliving.com, will introduce customers to American Living and include the American Living ads and links to the American Living "shop" on jcp.com. Print advertisements, reaching more than 120 million readers, will also launch in April in select national magazines and newspapers.

About JCPenney

JCPenney is one of America's leading retailers, operating 1,067 department stores throughout the United States and Puerto Rico, as well as one of the largest apparel and home furnishing sites on the Internet, jcp.com, and the nation's largest general merchandise catalog business. Through these integrated channels, JCPenney offers a wide array of national, private and exclusive brands which reflect the Company's commitment to providing customers with style and quality at a smart price. Traded as "JCP" on the New York Stock Exchange, the Company posted revenue of $19.9 billion in 2006 and is executing its strategic plan to be the growth leader in the retail industry. Key to this strategy is JCPenney's "Every Day Matters" brand positioning, intended to generate deeper, more emotionally driven relationships with customers by fully engaging the Company's 155,000 Associates to offer encouragement, provide ideas and inspire customers every time they shop with JCPenney.

CONTACT: JCPenney Corporate Communications
Media Relations
Rebecca Winter or Kate Parkhouse, 972-431-3400
jcpcorpcomm@jcpenney.com
or
JCPenney Brand Publicity
Fashion and Home
Merianne Roth, 972-431-2317
mroth@jcpenney.com

SOURCE: J. C. Penney Company, Inc.