J. C. Penney Company, Inc. announced an environmental goal to reduce facility energy consumption 20 percent per gross square foot by 2015.

Over the past decade, the Company has invested more than $130 million to improve the energy efficiency of its existing stores and logistics centers by installing advanced metering technology, building control systems, lighting retrofits and high-efficiency heating, ventilation and air-conditioning (HVAC) systems. In 2009 alone, these combined efforts resulted in a year-over-year elimination of approximately 80 million pounds of greenhouse gas emissions by reducing energy use across comparable stores.

JCPenney has taken an inclusive, “hands-on” approach to addressing the Company’s environmental impact. In 2004, JCPenney launched an Associate awareness and engagement program, now referred to as EMPowered, which encourages and educates every Associate to seek out innovative ways to save energy. Associates are regarded as environmental stewards who are actively involved in helping to reduce the Company’s overall emissions by curtailing unnecessary energy usage. Through EMPowered, JCPenney stores designate an “Energy Captain” who takes responsibility for monitoring energy usage levels, identifying opportunities for improvement and promoting energy-saving efforts throughout the facility. JCPenney logistics centers employ similar initiatives using Associate-based “Green Teams.”

“To become a more sustainable business, we needed to involve our 150,000 Associates whose individual actions and habits can have a profound effect in achieving energy conservation every day,” said Myron E. (Mike) Ullman, III, chairman and chief executive officer of JCPenney. “A true commitment to environmental progress begins with an organization that is willing to take the necessary steps toward a cleaner environment.”

Due to the Company’s comprehensive approach to energy management, JCPenney was the first retailer to earn the ENERGY STAR(R) Award for Sustained Excellence by the U.S. Department of Energy and the U.S. Environmental Protection Agency. JCPenney recently earned its 100th ENERGY STAR building certification for the JCPenney store in Glenwood Springs, Colo. To be certified, stores must attain an energy efficiency rating in the top quartile for all retail buildings while maintaining appropriate levels of comfort, lighting and air quality. The Company seeks to achieve ENERGY STAR certifications for a total of 200 Stores by the end of 2010 — a significant accomplishment given the average age of JCPenney stores.

Exploring Renewable Options

Complementing the Company’s energy management strategy, JCPenney is aspiring over time to obtain 25 percent of its total operating power from renewable sources. JCPenney currently hosts rooftop solar power systems on nine California and New Jersey stores with at least three more locations being planned for this year. In addition, JCPenney hosts 12 Architectural Wind(TM) turbines at its Manchester, Conn. logistics center as part of a joint project with AeroVironment, Inc. The small, modular turbines are specially designed to harness the building’s aerodynamics to bolster electrical power generation. When the turbines are operating at optimal speed, the expected power generated is equal to the electricity used to light up a 50,000-square-foot warehouse space. JCPenney is also piloting the commercial use of a wind energy project at its Reno, Nev. logistics center. The project utilizes Broadstar Wind Systems(TM) patented AeroCam wind turbine technology; an innovative cycloturbine design built to generate electricity from multiple blades that turn on a horizontal axis. Installation of a second generation design is expected to be completed later this year.

JCPenney’s energy reduction goal is a reflection of the Company’s commitment to the environment based on a social responsibility platform known as JCPcares(TM). For detailed information regarding JCPcares initiatives, JCPenney has released its 2009 Corporate Social Responsibility Report, which is available for download at www.jcpenney.net.