PLANO, Texas (Jan. 20, 2009) – J. C. Penney Company, Inc. (NYSE:JCP) provided clarification regarding its revolving credit facility in order to mitigate unfounded concerns.

The Company expects to have more than $2 billion of cash on its balance sheet at the end of fiscal 2008, the period that ends on Jan. 31, 2009. Among other factors, this reflects an improvement in the contribution to cash flow represented by cash flow from operating activities less capital expenditures and dividends during 2008 compared to the prior year. Moreover, the Company expects this cash flow metric to improve further and be positive in fiscal 2009.

The Company paid a $200 million debt maturity from its cash balances in August 2008 and has no debt maturities during 2009. The next debt maturity is approximately $500 million in March 2010, which the Company expects to fund from its cash balances.

In addition, based on its current funded status, the Company will not be required to make a contribution to its primary pension plan in 2009 and does not expect to be required to make a contribution in 2010.

The current credit facility provides an additional source of liquidity for the Company, but has never been utilized for cash needs. The current facility matures in April 2010, and the Company is currently in discussions with its key banking relationships to modify or replace the bank line during the first half of 2009.

A spokesperson for the Company said, “jcpenney has one of the strongest balance sheets in the retail industry and a cash position that is more than sufficient for all of our needs. Given this, there is no basis for any concern about our credit facility.”




For further information:

Investor Relations
Phil Sanchez; (972) 431-5575; psanc3@jcpenney.com
Kristin Hays; (972) 431-1261; klhays@jcpenney.com

Media Relations
Darcie Brossart; (972) 431-3400
jcpcorpcomm@jcpenney.com

Corporate Website
www.jcpenney.net


About jcpenney

jcpenney is one of America's leading retailers, operating 1,093 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 $19.9 billion in 2007 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 155,000 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, 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, 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.

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