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C7P...A Chip & Pepper Production Launches Exclusively at JCPenney for the Back-to-School Season

Celebrity Designers Chip and Pepper Foster Bring Hip and Stylish Brand to JCPenney's Junior's and Young Men's

PLANO, Texas--(BUSINESS WIRE)--March 22, 2007--JCPenney and Chip & Pepper today announced the launch of C7P...A Chip & Pepper Production, a denim and sportswear line to be sold exclusively at JCPenney. The new collection, designed for JCPenney's Junior's and Young Men's customers, will debut in most JCPenney stores and online at jcp.com for the 2007 Back-to-School season.

Inspired by the California surf lifestyle of identical twins, Chip and Pepper Foster, C7P...A Chip & Pepper Production defines cool mixed with quality, offering consumers the style they crave at a smart price. The line maintains the same look and integrity brought to the designers' premium clothing line, but with a youthful flair and key price point to suit the teen and young men's market. The line will include an array of denim items, including jeans, skirts, Bermuda shorts and crop pants, along with T-shirts, tops and fleece. The collection will retail from $14.99 for tops to $34.99 for jeans.

"C7P...A Chip & Pepper Production brings the fun, creativity and talent of Chip and Pepper Foster to JCPenney. Along with stylish denim fits that are fresh, young and invigorating, their partnership with JCPenney brings an authenticity that allows us to emotionally connect with our younger customers," said Ken Hicks, JCPenney president and chief merchandising officer. "As the number one department store destination for teens, C7P...A Chip & Pepper Production will further bolster our leadership during the Back-to-School season."

"At Chip & Pepper we have always maintained that there should be an affordable alternative to the premium fashion market that allows young fashionistas and budding style kings to wear the clothes they want at a price they can afford. It was important to us to find a strategic partner to help bring this to life and we found that with JCPenney," said Chip and Pepper Foster, co-presidents of Chip & Pepper. "JCPenney is the top destination for this important market of consumers and we are excited to work with such a prestigious retailer to introduce a new audience to the styles of Chip & Pepper through C7P...A Chip & Pepper Production."

In addition to designing their own product, Chip and Pepper Foster serve as the creative and business minds behind their premium fashion company, Chip & Pepper, and are also the face of the brand itself. They will bring the same personal touch to C7P...A Chip & Pepper Production and impart their own famous style and charisma into all of JCPenney's marketing for the brand, in which they will personally appear.

Creative Artists Agency, one of Hollywood's top talent agencies, and Mamiye Brothers, Inc., the leading teen and tween apparel manufacturer, served as the architects to bring forth the collaboration of Chip & Pepper and JCPenney.

About JCPenney

JCPenney is one of America's leading retailers, operating 1,033 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.

About Chip & Pepper

L.A. Lab, Inc. d.b.a Chip & Pepper, with its headquarters in Los Angeles, CA, has emerged as a leading American brand of premium denim since its launch in 2003. Its rapid popularity, spawned by a celebrity cult following, has expanded to include maternity, kids, knitwear, hats, leathergoods, and sportswear. The brand also includes Chip & Pepper University, a knit line incorporating vintage and original logos from more than 75 universities around the nation. Chip & Pepper is sold through select department and specialty stores in more than 42 countries, as well as in its flagship retail location in New York City's NoLita neighborhood. For additional store locations or information on the products, please visit www.chipandpepper.com.

This release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements, which reflect the Company's current views of future events and financial performance, involve known and unknown risks and uncertainties that may cause the Company's actual results to be materially different from planned or expected results. Those risks and uncertainties include, but are not limited to, competition, consumer demand, seasonality, economic conditions, including the price and availability of oil and natural gas, changes in interest rates, changes in management, retail industry consolidations, government activity, and acts of terrorism or war. Please refer to the Company's most recent Form 10-K and subsequent filings for a further discussion of risks and uncertainties. Investors should take such risks into account when making investment decisions. We do not undertake to update these forward-looking statements as of any future date. In addition, non-GAAP terms referenced are defined and presented in the Company's most recent annual report on Form 10-K.

SOURCE:
J. C. Penney Company, Inc.

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