JCPenney Announces Pricing of $600 Million of Unsecured Notes

Business Wire, Feb 25, 2003

Business Editors

PLANO, Texas--(BUSINESS WIRE)--Feb. 25, 2003

J. C. Penney Company, Inc. ("Company") (NYSE:JCP) announced today the pricing by its wholly-owned operating subsidiary, J. C. Penney Corporation, Inc. ("Corporation") of $600 million of 8.0 percent Notes Due 2010 priced at 99.342 percent of their principal amount to yield 8.125 percent ("Notes"). The Company is the co-obligor of the Notes. Application will be made to list the Notes on the New York Stock Exchange.

Commenting on the transaction, Robert B. Cavanaugh, executive vice president and chief financial officer, said, "We are pleased to have successfully priced this transaction, which will further enhance our liquidity and financial flexibility as we focus on rebuilding our businesses. The response demonstrates that investors continue to have confidence in our business plans and strategic direction."

The Corporation will use the net proceeds for general corporate purposes, including investments in working capital, capital expenditures and to repay a portion of upcoming debt maturities. Closing of the offering is expected to occur on February 28, 2003.

The securities are being underwritten by a group led by Credit Suisse First Boston LLC, J.P. Morgan Securities Inc., Wachovia Securities, Inc., Fleet Securities, Inc. and HSBC Securities (USA) Inc.

Copies of the final prospectus supplement and accompanying base prospectus relating to these securities may be obtained from Credit Suisse First Boston LLC, Eleven Madison Avenue, New York, NY 10010, 212-325-2580 or over the Internet from the SEC's website at http://www.sec.gov.

J. C. Penney Corporation, Inc., the wholly-owned operating subsidiary of the Company, is one of America's largest department store, drugstore, catalog, and e-commerce retailers, employing approximately 250,000 associates. As of January 25, 2003, the Corporation operated 1,049 JCPenney department stores throughout the United States, Puerto Rico, and Mexico, and 54 Renner department stores in Brazil. Eckerd Corporation operated 2,686 drugstores throughout the Southeast, Sunbelt, and Northeast regions of the U.S. JCPenney Catalog, including e-commerce, is the nation's largest catalog merchant of general merchandise. J. C. Penney Corporation, Inc. is a contributor to JCPenney Afterschool Fund, a charitable organization committed to providing children with high quality after school programs to help them reach their full potential.

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, and government activity. Investors should take such risks into account when making investment decisions.