JCPenney to Open 20 New Stores as Part of Its Accelerated Growth Program.

Nationwide Grand Opening Celebrations Begin Oct. 6

Will Open 150 More Stores in Next Three Years

PLANO, Texas -- Signaling the launch of its accelerated growth strategy, J. C. Penney Company, Inc. (NYSE:JCP), one of the nation's largest department store retailers, will open 20 new stores nationwide on Oct. 6. The simultaneous store openings taking place that day in 13 states support a key element of the Company's Long Range Plan -- to make JCPenney an "easy and exciting place to shop" -- by providing customers with an enhanced shopping experience in additional convenient locations.

"There is growing demand for JCPenney stores in markets across the country. We are addressing this by launching the most aggressive store opening program in more than 25 years, which will allow us to offer our customers even more access to style and quality at smart prices," said Myron E. (Mike) Ullman, III, JCPenney chairman and chief executive officer.

Growing Off-Mall

Fueled by the success of its new off-mall format, continued improvement in operating results and strong free cash flow, JCPenney previously announced that it expects to open at least 50 stores per year from 2007 through 2009. Eighty percent to 90 percent of the new JCPenney stores, including 17 of the 20 opening Oct. 6, will adopt the off-mall format, although the Company continues to pursue opportunities to acquire mall stores in attractive locations. The Company currently has 25 stores open in the off-mall design.

The off-mall format, covering approximately 100,000 square feet on a single level, features wider aisles, new lighting designs and concentrated customer service 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, SouthPole, Worthington, Stafford, Bisou-Bisou, Oshkosh, Nike and more.

"Our off-mall stores have exceeded our expectations, generating higher sales per square foot than our mall-based stores and more frequent visits by customers," continued Ullman. "We have a unique advantage in that our off-mall department stores provide a neighborhood presence that offers convenience and accessibility for mid-week shopping, while complementing our mall stores which continue to be a weekend and holiday shopping destination."

Grand Opening Celebrations on Oct. 6

Stores celebrating grand openings on Oct. 6 are in Trussville, Ala.; Rogers, Ark.; Aurora, Fort Collins, Longmont, and Westminster, Colo.; Fort Myers, Fla.; Kansas City, Kan.; Dardenne Prairie, Mo.; North Conway, N.H.; Olean, N.Y.; Harrisburg, Pa.; Columbia, S.C.; Murfreesboro, Tenn.; Fort Worth, Pasadena and San Antonio, Texas; South Jordan, Utah; and two in Austin, Texas. All JCPenney stores across the country will participate in the celebration and offer customers special Grand Opening discounts for the entire family.

Additional Services

Demonstrating that "It's All Inside" at JCPenney, the majority of the stores will feature all-occasion portrait studios offering innovative, customized portraits, 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 will be able to place orders or pick up catalog and Internet purchases at each store's catalog desk.

JCPenney Afterschool Fund Grants

As part of the Oct. 6 grand opening celebrations, the JCPenney Afterschool Fund, a non-profit, 501(c)(3) organization created by the J. C. Penney Company, Inc. to raise awareness of the need for working families to have access to quality afterschool programs, will contribute grants to local YMCA, Boys and Girls Clubs of America, and 4-H organizations. The grants will allow three local children in each market to participate in enriching afterschool programs during the school year. Each child will additionally receive a $100 JCPenney gift card for school apparel. The contributions will be presented during each store's ribbon cutting ceremony.

About JCPenney

J. C. Penney Corporation, Inc., the wholly owned operating subsidiary of J. C. Penney Company, Inc., is one of America's largest department store, catalog, and e-commerce retailers, employing approximately 151,000 associates. As of July 29, 2006, J. C. Penney Corporation, Inc. operated 1,021 JCPenney department stores throughout the United States and Puerto Rico. JCPenney is the nation's largest catalog merchant of general merchandise, and jcp.com is one of the largest apparel and home furnishings sites on the Internet.

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.