JCPenney Holds Annual Meeting of Stockholders

Board of Directors Declares Quarterly Dividend of $0.20 per share on the Company's Common Stock

PLANO, Texas--(BUSINESS WIRE)--

At its Annual Meeting of Stockholders held today, J. C. Penney Company, Inc. (NYSE:JCP) reviewed its updated objectives and financial performance expectations, all part of JCPenney's previously announced Long-Range Plan to position the Company to be a growth leader in the retail industry.

"Our 2007 to 2011 Long-Range Plan is designed to build on the strengths that differentiate JCPenney in the retail industry. We are off to a good start in implementing our new objectives as indicated by our strong first quarter earnings, and believe we are well-positioned to deliver the financial results we anticipate for the 2007 to 2011 timeframe. In addition, our highly-talented management team and 155,000 engaged Associates across the country are focused on executing our plans to exceed the expectations of our customers and achieve our vision to be their preferred shopping choice," said Myron E. (Mike) Ullman III, chairman and chief executive officer of JCPenney.

Stockholder Voting Results

At the meeting, Company stockholders re-elected four directors for a one-year term and ratified the appointment of KPMG LLP as independent auditor for the fiscal year ending Feb. 2, 2008. In other business, stockholders rejected a proposal to amend the Company's vote standard in the election of directors to a majority vote standard, and approved a proposal regarding stockholder approval of certain severance agreements with senior executives. This non-binding proposal was opposed by the Company's Board of Directors.

Dividend Declaration

JCPenney's Board of Directors declared a quarterly dividend of $0.20 per share on the Company's common stock. The dividend is payable Aug. 1, 2007, to the Company's stockholders of record at the close of business on July 10, 2007.

About JCPenney

JCPenney is one of America's leading retailers, operating 1,039 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.

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 and confidence, seasonality, economic conditions, including the price and availability of oil and natural gas, changes in interest rates, 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.

Source: J. C. Penney Company, Inc.