JCPenney Announces Voluntary Stock Contribution to Company`s Pension Plan

Company`s Financial Flexibility Increases as Contribution Further Strengthens
Plan`s Fully Funded Status
PLANO, Texas--(Business Wire)--
J. C. Penney Company, Inc. (NYSE: JCP) announced today that it made a voluntary
contribution of JCPenney common stock to the J. C. Penney Corporation, Inc.
Pension Plan ("Plan"). The contribution made to the Plan is valued at $340
million and consists of approximately 13.4 million newly issued shares of
JCPenney common stock. The value of the contribution was based on a price of
$25.3946 per share. With the contribution, the Plan`s fully funded status under
ERISA rules is further enhanced with a funding ratio in excess of 110 percent.

The Plan is one of the best funded pension plans in the United States, as
measured by the market value of the Plan`s assets relative to its projected
benefit obligation as of the Company`s fiscal year ended January 31, 2009. This
contribution further strengthens the Plan and is consistent with the Company`s
objective of maintaining a well-funded plan throughout all business and economic
cycles.

"The addition of Company stock to the Plan demonstrates management`s confidence
in our business plan and our strong prospects for future growth," stated Robert
Cavanaugh, executive vice president and chief financial officer. "The
contribution, which is fully tax deductible, increases the Company`s financial
flexibility for 2009 and future years and is accretive to earnings and cash flow
this year. It is also indicative of our commitment to effectively and
efficiently deliver the highest quality Benefits programs to our Associates."

An independent fiduciary, Evercore Trust Company, will manage the JCPenney
common stock contributed to the Plan. The stock contribution provides the Plan
with dividend income and the potential for future price appreciation during the
time the stock is held by the Plan. Evercore Trust Company will be solely
responsible for deciding when to sell the shares owned by the plan. State Street
Bank and Trust Company remains the plan trustee and custodian for all plan
assets.

Conference Call to Discuss Pension Contribution

Management will host a live conference call and real-time webcast tomorrow, May
19, 2009, beginning at 10:00 a.m. ET. Access to the conference call is open to
the press and general public in a listen only mode. To access the conference
call, please dial (877) 407-0778 and reference the JCPenney Pension Contribution
Conference Call. The telephone playback will be available for seven days
beginning approximately two hours after the conclusion of the call by dialing
(877) 660-6853, account code 286, and conference ID number 323517. The live
webcast may be accessed via JCPenney`s Investor Relations page at
www.jcpenney.net, or on www.InvestorCalendar.com and www.streetevents.com (for
members). Replays of the webcast will be available for up to 90 days after the
event.

About JCPenney

JCPenney is one of America's leading retailers, operating 1,101 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 $18.5 billion in 2008 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 approximately 150,000 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, recession, unemployment
levels, consumer spending patterns, credit availability and debt levels, changes
in store traffic trends, 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, increases in wage and benefit costs,
competition and retail industry consolidations, interest rate fluctuations,
dollar and other currency valuations, 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.

J. C. Penney Company, Inc.
Investor Relations:
Phil Sanchez, 972-431-5575
psanc3@jcpenney.com
or
Kristin Hays, 972-431-1261
klhays@jcpenney.com
or
Media Relations:
Darcie Brossart, 972-431-3400
jcpcorpcomm@jcpenney.com
or
Corporate Website:
www.jcpenney.net

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