JCPenney to Launch New Private Intimate Apparel Brand: Ambrielle; Largest Private Brand Introduction in Company's History; Sensual Intimate Apparel for the Modern Lifestyle Woman

J. C. Penney Company, Inc. (NYSE:JCP) will introduce a new privateintimate apparel brand, Ambrielle, in the largest private brand launchin the Company's history. Ambrielle will be the centerpiece brand ofJCPenney's redesigned lingerie departments, launching in JCPenneystores, catalogs and online on jcp.com in spring 2007.

Consistent with JCPenney's focus on offering merchandise thatreflects customers' lifestyles, Ambrielle is designed for the modernlifestyle customer and blends fashion with outstanding hidden comfortand support. Its combination of luxurious fabrics designed for lastingwear, along with innovative comfort features, such as the brand'slaser-cut, seamless and tag-free construction, make Ambrielle asuperior intimate apparel choice.

JCPenney's new intimate apparel "boutiques" will feature newlydesigned fixtures, body forms showcasing the collection's assortment,oversized graphics and separate checkout registers for ease ofshopping. In addition to offering the largest range of sizes andselection of any department store, customers are ensured the perfectfit by utilizing one of more than 13,000 JCPenney certified bra fitspecialists.

Myron E. (Mike) Ullman III, chairman and chief executive officer,said, "Ambrielle offers our modern lifestyle customer the fashion andquality she would find in a specialty store, but at a much smarterprice. It represents our focus of listening intently to what ourcustomers want and then offering them lingerie indulgences in anenvironment that is both easy and exciting. In our redesigned intimateapparel departments, our customers will find what they need, with thehelp of knowledgeable salespeople, offering merchandise in the widestranges of sizes and selection available."

Ambrielle: A Sensual Indulgence for Every Body

Ambrielle caters to the modern, sensual woman who is alluring,radiant and confident. The Ambrielle collection will include threesub-brands: Smooth Revolution (offering innovative modern comfort andsmooth support); Mystique (featuring indulgent, luxurious comfort withbody enhancement); and Essentials (understated while providing naturalsupport and a comfortable fit). Matching panties, featuring new fabricwith lasting wear and cool comfort, will be available for every bra.Accommodating women of all shapes and sizes, Ambrielle will be adestination brand offered across all JCPenney shopping channels --stores, jcp.com and catalog.

JCPenney began offering exclusive, private brands in 1914 andtoday has more than 25 private brands across its business. Thesebrands represent more than 40 percent of the Company's annual sales,three of which generate more than $1 billion annually.

About JCPenney

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

This release may contain forward-looking statements within themeaning of the Private Securities Litigation Reform Act of 1995. Suchforward-looking statements, which reflect the Company's current viewsof future events and financial performance, involve known and unknownrisks and uncertainties that may cause the Company's actual results tobe materially different from planned or expected results. Those risksand uncertainties include, but are not limited to, competition,consumer demand, seasonality, economic conditions, including the priceand availability of oil and natural gas, changes in interest rates,changes in management, retail industry consolidations, governmentactivity, and acts of terrorism or war. Please refer to the Company'smost recent Form 10-K and subsequent filings for a further discussionof risks and uncertainties. Investors should take such risks intoaccount when making investment decisions. We do not undertake toupdate these forward-looking statements as of any future date. Inaddition, non-GAAP terms referenced are defined and presented in theCompany's most recent annual report on Form 10-K.