JCPenney Announces Grand Opening of 14 New Stores

Store Expansion Represents Critical Element of Company's Growth Strategy

PLANO, Texas--(BUSINESS WIRE)--

J. C. Penney Company, Inc. (NYSE:JCP) today opened 14 new stores nationwide, which is part of its plan to open 250 new stores from 2007 through 2011 in order to address the strong demand it sees for style and quality at smart prices. All stores are fully stocked with JCPenney's trend-right merchandise, including an outstanding Back-to-School Assortment.

"We are delighted to be able to bring all that JCPenney has to offer, including an inspiring assortment of brands and services, to customers around the country as they prepare for the Back-to-School season and all of the important moments in their lives," said Myron E. (Mike) Ullman, III, JCPenney chairman and chief executive officer. "Our location strategy offers us the flexibility to open stores where the opportunities best suit us, whether in a mall or off-mall. This flexible approach gives us a distinct competitive advantage and the greatest opportunity to attract new customers and address the strong demand we see for JCPenney's offering in both large and mid-size markets."

Stores celebrating grand openings today are in Alabaster, Ala.; Phoenix; Montrose, Colo.; Nampa, Idaho; North Aurora and Montgomery, Ill.; Colerain, Ohio; Midwest City and Moore, Okla.; Burlington, N.C.; Saratoga Springs, N.Y.; Hampton, Va.; and San Antonio and Cypress, Texas. (Addresses, directions and store hours for these and all JCPenney locations can be found at jcp.com.)

Store Base Enhancement

JCPenney expects to open 250 new or relocated stores from 2007 through 2011. In addition, the Company will remodel approximately 300 stores over the same time frame (including 65 in 2007), supporting an easy, enjoyable shopping experience that is consistent with new stores.

Eighty to 90 percent of all new JCPenney stores opening through 2011, including 11 of the 14 opening today, will be off-mall stores, although the Company continues to pursue mall-based opportunities in attractive locations. The off-mall format, covering approximately 100,000 square feet on a single level, features wider aisles, new lighting designs, convenient price-check scanners and front linear checkout centers. The new store layout helps shoppers easily locate major brands such as The Original Arizona Jean Company, Chris Madden for JCPenney Home Collection, nicole by Nicole Miller, Worthington, Stafford, Bisou-Bisou, Nike and more.

Store Highlights and Services

Seven of the 14 new stores will feature a Sephora inside. The approximately 1,500-square-foot Sephora inside JCPenney locations offer the best of Sephora, including some of the most desired brands in makeup, skincare, fragrance, and accessory products such as Bare Escentuals(R) and Philosophy(R). They are staffed by a team of beauty consultants thoroughly trained in the Science of Sephora. JCPenney now has 39 stores with Sephora inside and expects to have 47 such locations by the end of 2007.

For added convenience, the majority of new JCPenney stores offer an assortment of services under one roof, including all-occasion portrait studios; expert in-home custom decorating services; and full-service salons offering an array of professional salon and spa services, as well as products from leading beauty brands. In addition, customers are able to place orders or pick up catalog and Internet purchases at each store's catalog desk.

JCPenney Afterschool Fund Grants

The JCPenney Afterschool Fund, a non-profit, 501(c)(3) organization created by the J. C. Penney Company, Inc. to provide children in need with access to life-enriching afterschool programs, is contributing grants to local YMCA and Boys and Girls Clubs of America in each of the new markets where JCPenney is opening. The grants will allow three local children in each market to participate in afterschool programs during the school year that will keep them safe and foster their academic, physical and social development. Each child receiving a grant will also receive a JCPenney gift card for school apparel.

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, 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.

Source: J. C. Penney Company, Inc.