JCPenney Closes on the Sale of Shares of Lojas Renner S.A.

PLANO, Texas--()--July 5, 2005--J. C. Penney Company, Inc. (NYSE:JCP) announced today that its wholly owned subsidiary, J. C. Penney Brazil, Inc., has closed on the sale of its shares in Lojas Renner S.A., a Brazilian department store chain, through a public stock offering in Brazil. The company is expected to generate net proceeds of approximately $260 million from the sale of its Renner interest. As a result of the sale, operating results for Renner will be classified by the company as discontinued operations beginning with the reporting of June sales and second quarter earnings.

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 150,000 associates. As of April 30, 2005, J. C. Penney Corporation, Inc. operated 1,017 JCPenney department stores throughout the U.S. and Puerto Rico. JCPenney is the nation's largest catalog merchant of general merchandise, and jcpenney.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 oil prices, changes in management, retail industry consolidations, acts of terrorism or war, and government activity. 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.

Contacts

J. C. Penney Company, Inc., Plano
Investor Relations
Bob Johnson, 972-431-2217
rvjohnso@jcpenney.com
or
Ed Merritt, 972-431-8167
emerritt@jcpenney.com
or
Public Relations
Quinton Crenshaw, 972-431-5581
qcrensha@jcpenney.com
or
Daphne Avila, 972-431-4655
dcavila@jcpenney.com

Contacts

J. C. Penney Company, Inc., Plano
Investor Relations
Bob Johnson, 972-431-2217
rvjohnso@jcpenney.com
or
Ed Merritt, 972-431-8167
emerritt@jcpenney.com
or
Public Relations
Quinton Crenshaw, 972-431-5581
qcrensha@jcpenney.com
or
Daphne Avila, 972-431-4655
dcavila@jcpenney.com