J. C. Penney January Comps Jump 6.4%

J. C. Penney reported comparable department store sales
increased 6.4 % for the four weeks ended January 24, 2004,
exceeding expectations. Sales reflect early sell through of Spring apparel, as well as successful clearance of seasonal merchandise.

Catalog/Internet sales increased 9.8 percent, above expectations.
Catalog's sales performance reflects strong results in both print
media and Internet. JCPenney.com has become one of the largest apparel
and home furnishings sites on the Internet. Internet sales increased
about 50 percent for the month, quarter and year. For the full year,
Internet sales exceeded $600 million, and continued to contribute
positively to the Company's results.

Comparable drugstore sales were in line with expectations,
decreasing 1.4 percent, with pharmacy sales increasing 1.8 percent and
front-end sales decreasing 8.8 percent.

The Company's fiscal year includes a 53rd week, with the January
period ending January 31, 2004. Comparable store sales and
catalog/Internet sales exclude the effects of the additional week.

For February, the Company currently expects both comparable
department store and catalog/Internet sales to increase low single
digits and comparable drugstore sales to decrease low single digits.

                       Preliminary Sales Summary
                       -------------------------
                            ($ in millions)

                                                         %
                            Period ended           Increase/(Decrease)
                   ------------------------------ --------------------
                   Jan. 31, Jan. 25,      %       Excluding Comparable
                     2004     2003    Inc./(Dec.)  53rd Week Stores(a)
                   ------------------------------ --------------------

5 Weeks
------------------
Department stores   $1,000     $799         25.2        5.4       6.4
Eckerd drugstores    1,388    1,118         24.2        0.4      (1.4)
Catalog/Internet       214      153         39.9        9.8
                   -------- --------
Total Company       $2,602   $2,070         25.7        3.0

14 Weeks
------------------
Department stores   $5,217   $4,971          4.9        1.8       3.2
Eckerd drugstores    4,060    3,784          7.3        0.3      (2.2)
Catalog/Internet       885      772         14.6        8.7
                   -------- --------
Total Company      $10,162   $9,527          6.7        1.7

53 Weeks
------------------
Department stores  $15,091  $15,021          0.5       (0.6)      0.9
Eckerd drugstores   15,127   14,643          3.3        1.5      (1.2)
Catalog/Internet     2,699    2,613          3.3        1.5
                   -------- --------
Total Company      $32,917  $32,277          2.0        0.5