J. C. Penney Company, Inc. : JCPENNEY DECLARES PURPORTED NOTICE OF DEFAULT ON CERTAIN BONDS IS INVALID; Company Seeks Injunctive

J. C. Penney Company, Inc. : JCPENNEY DECLARES PURPORTED NOTICE OF DEFAULT ON
 CERTAIN BONDS IS INVALID; Company Seeks Injunctive and Declaratory Relief in
                           Delaware Chancery Court

PLANO, Texas (Feb. 4, 2013) - J. C. Penney Company, Inc. ("jcpenney")
(NYSE:JCP) announced today that it received a letter dated January 29, 2013
from Brown Rudnick LLP claiming to represent holders of more than 50% of the
Company's 7.4% Debentures due 2037. The letter purports to be a Notice of
Default under the Indenture for these Debentures dated April 1, 1994 between
J. C. Penney Company, Inc. and U. S. Bank National Association as trustee. The
Company strongly believes the Notice of Default is invalid and utterly without
merit.

Brown Rudnick LLP alleges that the Company violated the Indenture by entering
into an inventory-secured Credit Agreement in January 2012 without providing
for equal and ratable security for the Debenture holders. However, the
granting of a security interest in inventory pursuant to the Credit Agreement
does not constitute an event of default under the Indenture. Pursuant to the
Indenture, the negative covenant extends only to "principal property" -- which
does not include inventory. Furthermore, the Company has never had any loans
outstanding under the Credit Agreement, and because the Indenture only covers
"indebtedness for money borrowed," the Company's entry into the Credit
Agreement would not have triggered the Indenture provision in any case. The
Company has publicly disclosed for some 10 years that it has had various
undrawn credit facilities secured by inventory with no bondholder allegations
of violation of the Indenture.

The Company today filed an action for injunctive and declaratory relief in
support of its position in the Court of Chancery of the State of Delaware.
The action seeks an order enjoining the trustee from declaring an event of
default as well as an order declaring that the Company is not in default of
the Indenture governing the Debentures.

Ken Hannah, chief financial officer of jcpenney said, "We believe this notice
of default is invalid, completely without merit and is intended to create
self-interested trading opportunities in the market, and we will therefore
vigorously defend the interests of jcpenney and all of our constituencies in
all appropriate forums."

For further information, contact:

Investor Relations; (972) 431.5500
jcpinvestorrelations@jcpenney.com

Public Relations; (972) 431.3400
jcpcorpcomm@jcpenney.com 

Corporate Website
ir.jcpenney.com

About jcpenney:
More than  a  century  ago, James  Cash  Penney  founded his  company  on  the 
principle of the Golden Rule: treat others the way you'd like to be treated  - 
Fair and Square. His legacy  continues to this day,  as J. C. Penney  Company, 
Inc. (NYSE: JCP) boldly transforms  the retail experience across 1,100  stores 
and jcp.com to become America's favorite store. Focused on making the customer
experience better  every  day,  jcpenney  is dreaming  up  new  ways  to  make 
customers love shopping again. On  every visit, customers will discover  great 
prices every day  in a  unique Shops environment  that features  exceptionally 
curated merchandise, a  dynamic presentation and  unmatched customer  service. 
For more information, visit us at jcp.com.

This release may contain forward-looking statements within the meaning of  the 
Private  Securities  Litigation  Reform  Act  of  1995.  Such  forward-looking 
statements, which reflect  the Company's  current views of  future events  and 
financial performance, involve known and unknown risks and uncertainties  that 
may cause the Company's actual results to be materially different from planned
or expected  results.  Those risks  and  uncertainties include,  but  are  not 
limited to, risks and uncertainties relating to the outcome of any  litigation 
relating to the issue, the Company's defense, the final interpretation of  the 
Indenture and  the  Company's ability  to  cure  any default  deemed  to  have 
occurred under the Indenture. Investors  should take such risks into  account 
when making  investment  decisions.  We  do  not  undertake  to  update  these 
forward-looking statements as of any future date.

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Source: J. C. Penney Company, Inc. via Thomson Reuters ONE
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