J. C. Penney Company, Inc. comparable department store sales for the month of December increased 2.2%, while total department store sales increased 3.1%. Comparable store sales were in line with previous guidance for a low-single digit increase, and compare with a sales decline of 1.3% in last year's December period. Comparable sales for the combined November and December holiday period increased 2.7% versus an increase of 3.1% last year.

Sales were strongest the last two weeks of the period, with the best sales performance in the month coming from women's accessories, children's apparel and family shoes. Geographically, the best performance continued to be in the west and southeast.

Direct (catalog/Internet) sales increased 4.3% during the period, slightly ahead of previous guidance for a low-single digit sales increase. The December 2005 increase comes on top of a 6.7% increase in the December period last year. Sales for jcpenney.com increased approximately 26% in December and nearly 30% year-to-date.

January Sales Guidance

For the month of January, the company expects comparable department store sales to increase low-single digits and Direct (catalog/Internet) sales to be about flat. In last year's January period, comparable department store sales increased 2.5% and Direct sales increased 12.6%.

                      Preliminary Sales Summary
                           ($ in millions)

                                         % Increase / (Decrease)
                                   -----------------------------------
                   Period ended       All Stores        Comp Stores
                 ----------------- ----------------- -----------------
                  Dec.31,  Jan.01,  Dec.31,  Jan.01,  Dec.31,  Jan.01,
                   2005    2005(1)   2005     2005     2005     2005
                  ------- -------   -------  -------  -------  -------
5 Weeks
-----------------
Department stores  $2,839  $2,757      3.0     (1.5)     2.2     (1.3)
Direct                417     400      4.3      6.7
                   ------ -------
Total Company      $3,256  $3,157      3.1     (0.6)

9 Weeks
-----------------
Department stores  $4,404  $4,257      3.5      2.9      2.7      3.1
Direct                708     684      3.5      1.9
                  ------- -------
Total Company      $5,112  $4,941      3.5      2.8

48 Weeks
-----------------
Department stores $15,048 $14,515      3.7      5.0      2.9      5.1
Direct              2,642   2,551      3.6      2.7
                  ------- -------
Total Company     $17,690 $17,066      3.7      4.6

(1) 2005 department store sales have reflected the accounting for a
sales returns reserve on a monthly basis. Beginning with the October
period, 2004 monthly sales are being shown on a comparable basis with
2005.