JCPenney Accelerates Energy-Saving Initiatives

New Denver Store, Opening Oct. 5, is Pilot for Sustainable Building Features Award-Winning Energy Management Program Helps Stores Drive Down Utility Usage and Realize Environmental Benefits


Building on its legacy of environmental stewardship and social responsibility, J. C. Penney Company, Inc. (NYSE:JCP) today announced a series of enhanced programs designed to generate significant environmental and business benefits. In October, the Company will open a new store in Denver that will pilot a series of sustainability initiatives for new store construction. JCPenney will also accelerate its award-winning energy management program in new and existing stores, further mobilize Associates to drive energy-saving practices, and build on its existing reuse and recycling programs at all stores, its Home Office and other operational facilities.

"Our Company's philosophy is 'Every Day Matters,' and that point of view extends to our concern for the environment, which we know is shared by our customers and reflected in their shopping decisions," says Jim Thomas, vice president and director of corporate social responsibility at JCPenney. "We are thrilled to open our new Denver store, as it is a testing ground for new eco-friendly building features to be included in new stores in coming years. We are also excited to have Associates who take an active role to ensure we continually seek ways to reduce energy usage and to maximize the use of materials in our organization. This is part of the legacy of social responsibility on which our Company was built and which will remain an integral part of our future."

Earlier this year, JCPenney was recognized by the U.S. Environmental Protection Agency as a 2007 ENERGY STAR Partner of the Year for Energy Management, becoming the first retailer to receive an ENERGY STAR Partner award for energy management efforts.

    New JCPenney Store in Denver Pilots "Green" Building Concepts

On Oct. 5, JCPenney will celebrate the grand opening of its new store in The Shops at Northfield Stapleton, Forest City Enterprises, Inc.'s LEED (Leadership in Energy and Environmental Design) certified shopping center development in northeast Denver.

"We conducted a top-to-bottom review of our store construction process and equipment to determine where we could operate more efficiently without diminishing the comfort and convenience of customers and Associates while maintaining reasonable costs," said Michael Dastugue, JCPenney senior vice president and director of property development. "Our new Denver store is the product of those findings. We will closely review the performance of our new sustainable building features in that location as we look to incorporate them into new stores and store renovation plans in the future."

The sustainable building features JCPenney implemented in the Denver location include:

    --  Exterior brick manufactured through a waste petroleum
        byproducts firing process; recycled-content ceiling tiles; and
        carpet made from 100 percent recycled material. Additionally,
        throughout construction, waste materials such as concrete,
        metal and drywall were separated and recycled.

    --  Local sourcing of exterior construction and landscaping
        materials, to minimize the carbon impact of transportation.

    --  Exterior signs that use low-wattage LED lights, and occupancy
        sensors to control lights in offices, restrooms, dressing
        rooms and stock rooms to save energy when those areas are not
        in use.

    --  Use of low volatile organic compound (low-VOC) paints,
        adhesives and sealants.

    --  Low- and no-consumption plumbing fixtures throughout the
        store, including high-efficiency ENERGY STAR-listed washers
        and dryers in the styling salon and on-demand water heaters.

Additionally, JCPenney noted it is pursuing LEED certification for two new stores opening in 2008 and 2009.

Energy Management Leads to Significant Cuts in Greenhouse Gas Emissions

All new JCPenney stores, including the 41 newly built stores opening in 2007, are equipped with high-efficiency HVAC systems; reflective, R20-rated insulating white roof systems; and high-efficiency lighting. In addition, each new store is commissioned by certified engineers to ensure the buildings are constructed and operated for peak efficiency.

Building on this effort, by the end of 2008, approximately 800 JCPenney stores will be equipped with an Energy Management System (EMS), which provides remote monitoring of the store's electrical and mechanical systems, schedules the operation of lighting, electrical and HVAC equipment, monitors store comfort levels and identifies opportunities for saving energy.

Over the past five years, JCPenney has invested more than $75 million to install EMS technology, lighting retrofits and high-efficiency HVAC systems in stores. In 2006, these efforts resulted in year-over-year elimination of close to 31,000 tons in greenhouse gas emissions by reducing energy use across all stores, even as store operating hours increased by 5 percent and net store square footage increased 2.3 percent.

Our Associates Drive Energy Conservation

To champion energy-saving efforts, the Company has designated an Associate at each store as an Energy Captain. These individuals are responsible for monitoring energy usage data and identifying opportunities for improvement. A company-wide campaign, Monthly Utility Mania (or MUM), rewards teams for developing energy-saving solutions and supporting energy conservation across JCPenney.

Building on a History of Recycling and Reusing

JCPenney has collected and recycled cardboard boxes and packaging at its stores and distribution facilities for more than 30 years. In 2006 alone, the Company recycled more than 95,000 tons of cardboard and 12,000 tons of plastic hangers and other plastic.

Building on these efforts, JCPenney is testing reusable shopping bags that not only can help reduce the reliance on give-away plastic bags but also support afterschool programs, which is JCPenney's signature charitable issue. Net proceeds from sales of the shopping bags - which were introduced Sept. 9 in 75 stores in the San Diego, Miami, Minneapolis, Seattle and Austin districts - are donated to the JCPenney Afterschool Fund to provide children in need with access to life-enriching afterschool programs in communities across the country.

About JCPenney

JCPenney is one of America's leading retailers, operating 1,048 department stores throughout the United States and Puerto Rico, as well as one of the largest apparel and home furnishing sites on the Internet,, 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.

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, general economic conditions, including inflation, consumer spending patterns and debt levels, the cost of goods, trade restrictions, changes in tariff, freight, paper and postal rates, changes in the cost of fuel and other energy and transportation costs, competition and retail industry consolidations, interest rate fluctuations, risks associated with war, an act of terrorism or pandemic, and a systems failure and/or security breach that results in the theft, transfer or unauthorized disclosure of customer, employee or Company information. 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.

Source: J. C. Penney Company, Inc.