J. C. Penney comparable department store sales increased 12.1 percent for the four weeks ended Feb. 28, 2004, well above expectations. Sales were strong across all merchandise divisions and benefited from good sell through of Spring apparel and a positive response to Valentine's Day and Presidents' Day events.

Catalog/Internet sales increased 8.0 percent, also above
expectations. Sales reflect improving trends in specialty catalogs and
continued strength in Internet. Internet sales increased over 40
percent, reflecting a strong customer response to expanded
solutions-based product offerings, value and convenience.

The Company currently expects March sales for both comparable
department stores and catalog/Internet to be up low single digits.

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

Period ended % Increase/(Decrease)
---------------------- ---------------------
Feb. 28, Feb. 22, Comparable
2004 2003 All Stores Stores
----------- ---------- ---------- ----------

4 Weeks
-------------------------
Department stores $1,009 $903 11.7 12.1
Catalog/Internet 188 174 8.0
----------- ----------
Total Continuing
Operations $1,197 $1,077 11.1

Discontinued Operations
-- Eckerd $1,162 $1,184 (1.9) (3.5)
-------------------------

Pharmacy Comp (0.3)
Front-End Comp (10.0)