J. C. Penney Company, Inc. comparable department store sales increased 0.1% for the five weeks ended April 2. Continuing strength in the southeast and western regions of the country was offset by weakness in the midwest and northeast during the Easter selling season. Catalog/Internet sales were flat to last year, which was in line with plan. The Internet component of sales continues to experience strong growth, increasing approximately 30% for the month. In last year's March period, comparable department store sales increased 11.4% and catalog/Internet sales increased 9.6%.

For the month of April, the company expects comparable department store sales to be flat to up slightly and catalog/Internet sales to be up low-single digits. April sales reflect the shift of Easter into this year's March period. In last year's April period, comparable department store sales increased 5.3 percent and catalog/Internet sales increased 0.1 percent.

Based on actual sales results for February and March, management believes that its previous first quarter earnings guidance of 48 cents to 53 cents per share remains appropriate.

As of April 1, 2005, the company had repurchased approximately 54 million shares of common stock for about $2.1 billion since initiating the program in August 2004. The company has authorization to repurchase approximately $1.6 billion of additional common stock, which it expects to complete by the end of 2005. Market conditions have restricted the company's ability to repurchase common stock at the same pace as the third and fourth quarters of 2004. As a result, management now expects first quarter average diluted shares to be in the range of 273 million to 275 million shares. 

                      Preliminary Sales Summary
                           ($ in millions)

                              Period ended            % Increase
                         ----------------------- ---------------------
                           Apr. 2,     Apr. 3,   All Stores Comparable
                             2005        2004                 Stores
                         ----------- ----------- ---------- ----------

5 Weeks
------------------------
Department stores            $1,304      $1,292        0.9        0.1
Catalog/Internet                261         261        0.0
                         ----------- -----------
Total Company                $1,565      $1,553        0.8

9 Weeks
------------------------
Department stores            $2,379      $2,303        3.3        2.7
Catalog/Internet                461         449        2.7
                         ----------- -----------
Total Company                $2,840      $2,752        3.2