J. C. Penney Company, Inc. : J. C. PENNEY COMPANY, INC. REPORTS 2012 FISCAL FOURTH QUARTER AND FULL YEAR RESULTS

 J. C. Penney Company, Inc. : J. C. PENNEY COMPANY, INC. REPORTS 2012 FISCAL
                     FOURTH QUARTER AND FULL YEAR RESULTS

PLANO, Texas, Feb. 27, 2013  -- J. C. Penney  Company, Inc. (NYSE: JCP)  today 
announced financial results for its fiscal fourth quarter and full year  ended 
February 2,  2013. For  the quarter,  jcpenney reported  a net  loss of  $552 
million or $2.51 per share. Excluding restructuring and management transition
charges and non-cash primary pension plan expense, the Company's adjusted  net 
loss for the quarter was $427 million or $1.95 per share. 

For the year, jcpenney reported a net loss of $985 million or $4.49 per share.
Excluding markdowns related to the alignment of inventory with the  Company's 
new  strategy,  restructuring  and  management  transition  charges,  non-cash 
primary pension plan expense  and the net  gain on the  sale or redemption  of 
non-operating assets, the Company's  adjusted net loss for  the year was  $766 
million or $3.49 per  share. A reconciliation of  GAAP to non-GAAP  financial 
measures is included in the schedules accompanying the consolidated  financial 
statements included with this release.

Ron Johnson, chief  executive officer  of jcpenney said,  "Sales and  customer 
traffic were below our expectations in  2012, but as we execute our  ambitious 
transformation plan, we are pleased with the great strides we made to  improve 
jcpenney's cost  structure,  technology  platforms and  the  overall  customer 
experience. We  have accomplished  so much  in the  last twelve  months.  We 
believe the bold actions taken in  2012 will materially improve the  Company's 
long-term growth and profitability." 

Johnson continued, "Looking ahead, we are energized by our shop roll out plans
for 2013 and  the exciting  work our teams  are undertaking  to transform  the 
store.   Combining a  new  marketing campaign  focused  on style  and  value, 
incredible new brands and updated merchandise, with continued enhancements  to 
the customer experience  both in  our stores and  on jcp.com,  we are  working 
towards reconnecting with our core customer while attracting new customers  to 
jcpenney."

Fourth Quarter Results:
Total sales for the  fourth quarter, which included  $163 million of sales  in 
the 53rd week,  decreased 28.4  percent to $3.884  billion. Comparable  store 
sales, which exclude the  53^rd week, declined  31.7 percent. Internet  sales 
through jcp.com  were $315  million  in the  fourth quarter,  decreasing  34.4 
percent from last year.

Gross margin was 23.8 percent of sales,  compared to 30.2 percent in the  same 
period last year. Gross margin was impacted by lower than expected sales  and 
a higher level of clearance merchandise sales related to inventory  reductions 
in 2012.

The Company's SG&A  expenses decreased  $134 million compared  to last  year's 
fourth quarter.

The Company incurred  a charge of  $148 million,  or $0.41 per  share, in  the 
fourth quarter related to lump-sum settlements from its primary pension  plan, 
elected by participants who have separated from the Company.

Additionally during  the  quarter,  the Company  recognized  charges  totaling 
approximately $86 million, or $0.24 per  share, related to the impairment  and 
write-off of certain store and store-related assets.

For the fourth quarter, the Company incurred $29 million, or $0.08 per  share, 
in restructuring and  management transition charges.  These charges  comprised 
the following:

  *Store fixtures $18 million, or $0.05 per share;
  *Management transition $5 million, or $0.01 per share;
  *Home office and stores $4 million, or $0.01 per share;
  *Other $2 million, or $0.01 per share.

Operating cash flow in  the fourth quarter was  $645 million compared to  $953 
million in last year's fourth quarter. Investing cash flow was a use of  $229 
million compared to a use of $455 million in the same quarter last year.

Fiscal 2012 Results:
Total sales for the fiscal year, which  included $163 million of sales in  the 
53^rd week,  decreased  24.8 percent  to  $12.985 billion.  Comparable  store 
sales, which exclude the  53^rd week, declined  25.2 percent. Internet  sales 
through jcp.com were $1.020 billion, decreasing 33.0 percent from last year.

Gross margin was 31.3  percent of sales, compared  to 36.0 percent last  year. 
Gross margin was  impacted by lower  than expected sales,  a higher level  of 
clearance merchandise  sales and  markdowns  taken during  the year  to  clear 
discontinued inventory  in  preparation  for  new  product  and  brands  being 
introduced as part of the transformation.

The Company's SG&A expenses decreased $603 million compared to last year.

As noted above, the Company  incurred a charge of  $148 million, or $0.41  per 
share, related to lump-sum settlements from its primary pension plan,  elected 
by participants who have separated from the Company.

Additionally, the Company  realized net  gains on  the sale  or redemption  of 
non-operating  assets  of  $397   million  and  recognized  charges   totaling 
approximately $86 million, or $0.24 per  share, related to the impairment  and 
write-off of certain store and store-related assets.

For the  year, the  Company incurred  $298  million, or  $0.83 per  share,  in 
restructuring and management transition  charges. These charges comprised  the 
following:

  *Home office and stores $109 million, or $0.30 per share;
  *Store fixtures $78 million, or $0.22 per share;
  *Management transition $41 million, or $0.12 per share;
  *Software and systems $36 million, or $0.10 per share;
  *Supply chain $19 million, or $0.05 per share;
  *Other $15 million, or $0.04 per share.

Despite the  impacts  of reduced  sales  and gross  margin  and  restructuring 
charges associated  with the  Company's transformation  throughout 2012,  full 
year operating cash flow was  a use of $10  million. This takes into  account 
the non-cash nature of a number of restructuring charges, the positive impacts
of reduced expenses, reduction  in inventory levels,  specific steps taken  to 
improve overall working capital, including  the realignment of vendor  payment 
schedules of $129 million and a one-time deferral of select vendor payments in
the fourth quarter of $85 million. Investing cash flow for the year was a use
of $293 million as capital investments  of $810 million were partially  offset 
by cash from  the sale and  redemption of non-operating  assets. The  Company 
reduced its debt by $250 million in 2012 and ended the year with $930  million 
in cash and cash equivalents. 

Spring 2013 Shops Outlook:
During spring 2013, the Company anticipates opening close to 20 shops
designated for home products in 505 stores with brand partners such as Michael
Graves, Jonathan Adler and Sir Terence Conran, among others. In addition to
transforming the home area, the Company will open nearly 700 Joe Fresh^TM
apparel shops on March 15, 2013 as it transforms nearly 11 million square feet
of retail space in the spring.

During the year, the  Company anticipates opening  60 Sephora inside  jcpenney 
stores, bringing the total to 446.

Earnings Event Today/Webcast Details:
At 5:00  p.m. ET  today, the  Company will  host a  live conference  call  and 
streaming video webcast conducted by  Chief Executive Officer Ron Johnson  and 
Chief Financial Officer  Ken Hannah. The  event will include  a formal  slide 
presentation followed by a live question-and-answer session. The webcast will
be  available   live  on   the  Company's   investor  relations   website   at 
http://ir.jcpenney.com. Replays of the webcast will be available for up to 90
days after  the event.  To  access the  conference  call, please  dial  (866) 
202-4683, or (617) 213-8846 for international callers, and reference  59362622 
participant code. 

Telephone playback will  be available for  seven days beginning  approximately 
two hours after the  conclusion of the meeting  by dialing (888) 286-8010,  or 
(617) 801-6888 for international callers, and referencing 81990309 participant
code.

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,  general  economic  conditions,  including  inflation,  recession, 
unemployment levels, consumer spending patterns, credit availability and  debt 
levels,  changes  in  store   traffic  trends,  the   cost  of  goods,   trade 
restrictions, the  impact  of  changes designed  to  transform  our  business, 
customer acceptance  of  our new  strategies,  the impact  of  cost  reduction 
initiatives, implementation of new systems  and platforms, changes in  tariff, 
freight and shipping rates, changes in the  cost of fuel and other energy  and 
transportation costs, increases  in wage  and benefit  costs, competition  and 
retail industry consolidations, interest  rate fluctuations, dollar and  other 
currency valuations, the impact of  weather conditions, risks associated  with 
war, an act of terrorism or pandemic, a systems failure and/or security breach
that results in the  theft, transfer or  unauthorized disclosure of  customer, 
employee or Company information and legal and regulatory proceedings.  Please 
refer to the  Company's most  recent Form 10-K  and subsequent  filings for  a 
further discussion  of risks  and uncertainties.  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.

                                   # # #

                          SUMMARY OF OPERATING RESULTS
                                  (Unaudited)
                           J. C. PENNEY COMPANY, INC.
                                                                           
                                                                           
                                                                           
                        Three months ended ^(1)       Twelve months ended ^(1)
                                   Jan.                           Jan.
                      Feb. 2,      28,    % Inc.     Feb. 2,      28,    % Inc.
                       2013        2012   (Dec.)      2013        2012   (Dec.)
STATEMENTS OF
OPERATIONS:                                                                   
Total net sales     $   3,884   $  5,425  (28.4)%  $  12,985   $ 17,260  (24.8)%
Cost of goods sold      2,960      3,788  (21.9)%      8,919     11,042  (19.2)%
Gross margin              924      1,637  (43.6)%      4,066      6,218  (34.6)%
Operating
expenses/(income):                                                            
  Selling, general
  and
  administrative
  (SG&A)                1,209      1,343  (10.0)%      4,506      5,109  (11.8)%
  Primary pension
  plan                    176         22    100+%        315         87    100+%
  Supplemental
  pension plans            10         11   (9.1)%         38         34    11.8%
        Total
        pension           186         33    100+%        353        121    100+%
  Depreciation and
  amortization            157        135    16.3%        543        518     4.8%
  Real estate and
  other, net               88         45    95.6%      (324)         21  (100+)%
  Restructuring and
  management
  transition               29        154  (81.2)%        298        451  (33.9)%
  Total operating
  expenses              1,669      1,710   (2.4)%      5,376      6,220  (13.6)%
Operating
income/(loss)           (745)       (73)  (100+)%   (1,310)        (2)  (100+)%
Net interest
expense                    57         57     0.0%        226        227   (0.4)%
Income/(loss)
before income taxes     (802)      (130)  (100+)%    (1,536)      (229)  (100+)%
Income tax
expense/(benefit)       (250)       (43)  (100+)%      (551)       (77)  (100+)%
Net income/(loss)   $   (552)   $   (87)  (100+)%  $   (985)   $  (152)  (100+)%
                                                                              
Earnings/(loss) per
share - basic and
diluted             $  (2.51)   $ (0.41)  (100+)% $$  (4.49)   $ (0.70)  (100+)%
                                                                              
                                                                              
                                                                              
FINANCIAL DATA: 
Comparable store
sales
increase/(decrease)   (31.7)% (2) (1.8)%            (25.2)% (2)   0.2%        
Total net sales
increase/(decrease)   (28.4)% (3) (4.9)%            (24.8)% (3) (2.8)%        
                                                                              
                                                                              
Ratios as a
percentage of
sales:                                                                        
  Gross margin          23.8%      30.2%              31.3%      36.0%        
  SG&A expenses         31.1%      24.8%              34.7%      29.6%        
  Total operating
  expenses              43.0%      31.5%              41.4%      36.0%        
  Operating
  income/(loss)       (19.2)%     (1.3)%            (10.1)%     (0.0)%        
Effective income
tax rate                31.2%      33.1%              35.9%      33.6%        
                                                                              
COMMON SHARES DATA:
Outstanding shares
at end of period        219.3      215.9               219.3      215.9
Weighted average
shares outstanding
(basic and diluted)     219.5      213.7              219.2      217.4        
                                                                              
                                                                              
                                                                              
(1) Three months ended February 2, 2013 and January 28, 2012 contained 14 weeks
and 13 weeks, respectively, and the twelve months ended February 2, 2013 and
January 28, 2012 contained 53 and 52 weeks, respectively.
(2) Comparable store sales are calculated on a 13-week and 52-week basis and
include sales from new and relocated stores that have been opened for 12
consecutive full fiscal months and Internet sales. Stores closed for an
extended period are not included in the comparable stores sales calculation,
while stores remodeled and minor expansions not requiring store closures remain
in the calculation.
(3) Excluding the 53rd week, total net sales decreased 31.4.% and 25.7% for the
three months and twelve months ended February 2, 2013, respectively. 

                            SUMMARY BALANCE SHEETS
                                 (Unaudited)
                            (Amounts in millions)
                                                          Feb. 2,    Jan. 28,
                                                           2013        2012
SUMMARY BALANCE SHEETS:                                           
Current assets                                                    
  Cash in banks and in transit                        $     121  $      175
  Cash short-term investments                               809       1,332
             Cash and cash equivalents                        930       1,507
  Merchandise inventory                                   2,341       2,916
  Income tax receivable                                      57         168
  Deferred income taxes                                     106         245
  Prepaid expenses and other                                249         245
Total current assets                                        3,683       5,081
Property and equipment, net                                 5,353       5,176
Other assets                                                  745       1,167
Total assets                                            $   9,781  $   11,424
                                                                  
                                                                  
Liabilities and stockholders' equity                              
Current liabilities                                               
  Merchandise accounts payable                        $   1,162  $    1,022
  Other accounts payable and accrued expenses             1,395       1,503
  Current maturities of capital leases and note
payable                                                        26           1
  Current maturities of long-term debt                     -            230
Total current liabilities                                   2,583       2,756
Long-term capital leases and note payable                      88           3
Long-term debt                                              2,868       2,868
Deferred taxes                                                388         888
Other liabilities                                             683         899
Total liabilities                                           6,610       7,414
Stockholders' equity                                        3,171       4,010
Total liabilities and stockholders' equity              $   9,781  $   11,424

                       SUMMARY STATEMENTS OF CASH FLOWS
                                 (Unaudited)
                            (Amounts in millions)
                                  Three months ended       Twelve months ended
                                  Feb. 2,    Jan. 28,      Feb. 2,    Jan. 28,
                                   2013        2012          2013       2012
STATEMENTS OF CASH FLOWS:
Cash flows from operating
activities:
  Net income/(loss)          $   (552) $     (87)   $   (985) $    (152)
  Adjustments to reconcile
net income/(loss) to net cash
   provided by/(used in)
   operating activities:
   Restructuring and management
   transition                          19          84           121        314
   Asset impairments and other
   charges                            107          59           117         67
   Net gain on sale of
   operating assets                  -         (6)            -            (6)
   Net gain on sale or
   redemption of non-operating
   assets                            -          -           (397)        -
   Depreciation and
   amortization                       157         135           543        518
   Benefit plans                      162           9           272         55
   Stock-based compensation            12          13            50         46
   Excess tax benefits from
   stock-based compensation             5         (5)          (12)       (10)
   Deferred taxes                   (243)        (57)         (467)     (153)
  Change in cash from:
   Inventory                        1,021       1,460           575        297
   Prepaid expenses and other
   assets                              36          19           (5)       (67)
   Merchandise accounts payable     (246)      (809)           140      (111)
   Current income taxes                 9          19           117       (15)
   Accrued expenses and other         158         119         (79)         37
       Net cash provided
       by/(used in) operating
       activities                     645         953          (10)        820
Cash flows from investing
activities:
   Capital expenditures             (230)       (165)         (810)     (634)
   Proceeds from the sale or
   redemption of non-operating
       assets                           1           -           526          -
   Acquisition                       -          (268)           (9)      (268)
   Proceeds from sale of
   operating assets                  -             14         -             15
   Cost investment, net              -           (36)         -           (36)
   Proceeds from joint venture
   distribution                      -          -             -             53
       Net cash provided
       by/(used in) investing
       activities                   (229)       (455)         (293)      (870)
Cash flows from financing
activities:
   Payment of long-term debt         -          -             (230)      -
   Payment of capital leases
   and note payable                   (7)       -              (20)
   Financing costs                   -            (5)           (4)       (20)
   Stock repurchase program          -          -             -          (900)
   Proceeds from issuance of
   stock warrant                     -          -             -             50
   Proceeds from stock options
   exercised                            1           6            71         18
   Other changes in
   stockholders' equity               (5)        (34)           (5)       (35)
   Dividends paid                    -           (43)          (86)      (178)
       Net cash provided
       by/(used in) financing
       activities                    (11)        (76)         (274)    (1,065)
Net increase/(decrease) in cash
and cash equivalents                  405         422         (577)    (1,115)
Cash and cash equivalents at
beginning of period                   525       1,085         1,507      2,622
Cash and cash equivalents at
end of period                   $     930  $    1,507    $      930 $    1,507

ADJUSTED NET INCOME/(LOSS) AND ADJUSTED EARNINGS/(LOSS) PER SHARE - DILUTED,
NON-GAAP FINANCIAL MEASURES
The following table reconciles net income/(loss) and earnings/(loss) per
share-diluted, the most directly comparable GAAP measures, to adjusted net
income/(loss) and adjusted earnings/(loss) per share - diluted, non-GAAP
financial measures:

                                Three months ended       Twelve months ended
                                Feb. 2,    Jan. 28,      Feb. 2,     Jan. 28,
                                 2013        2012         2013         2012
Net income/(loss)              $  (552)    $   (87)     $  (985)    $  (152)
Earnings/(loss) per share -
diluted                        $ (2.51)    $ (0.41)     $ (4.49)    $ (0.70)
      Markdowns - inventory
Add:  strategy alignment, net
           of tax of $-, $-,
           $60 and $-              -           -              95        -
      Restructuring and
      management transition
           charges, net of
           tax of $12, $35,
           $116 and $145             17         119          182         306
      Primary pension plan
      expense, net of tax of
      $68,
           $9, $122, $34            108          13          193          53
      Net gain on sale or
      redemption of
Less: non-operating
           assets, net of tax
           of $-, $-, $146
           and $-                  -           -           (251)        -
Adjusted net income/loss
(non-GAAP)                     $  (427)    $     45        (766)    $    207
                                                                   
Adjusted earnings/(loss) per
share - diluted (non-GAAP)     $ (1.95)    $   0.21     (3.49)    $   0.94

                Reconciliation of Non-GAAP Financial Measures
                                 (Unaudited)
                 (Amounts in millions except per share data)

Free cash flow is a key financial measure of our ability to generate
additional cash from operating our business and in evaluating our financial
performance. We define free cash flow as cash flow from operating activities,
less capital expenditures and dividends paid, plus the proceeds from the sale
of operating assets. Free cash flow is a relevant indicator of our ability to
repay maturing debt, revise our dividend policy or fund other uses of capital
that we believe will enhance stockholder value. Free cash flow is considered a
non-GAAP financial measure under the rules of the SEC. Free cash flow is
limited and does not represent remaining cash flow available for discretionary
expenditures due to the fact that the measure does not deduct payments
required for debt maturities, pay-down of off-balance sheet pension debt, and
other obligations or payments made for business acquisitions. Therefore, it is
important to view free cash flow in addition to, rather than as a substitute
for, our entire statement of cash flows and those measures prepared in
accordance with GAAP.

FREE CASH FLOW, NON-GAAP FINANCIAL MEASURE
The following table reconciles cash flow from operating activities, the most
directly comparable GAAP measure, to free cash flow, a non-GAAP financial
measure:

                                     Three months ended    Twelve months ended
                                     Feb. 2,   Jan. 28,     Feb. 2,   Jan. 28,
                                       2013      2012        2013       2012
Net cash provided by/(used in)
operating activities                 $   645   $  953      $  (10)   $   820
        Proceeds from sale of
Add:    operating assets                 -          14          -          15
Less:   Capital expenditures           (230)     (165)        (810)     (634)
        Dividends paid                   -        (43)         (86)     (178)
Free cash flow (non-GAAP)            $   415   $   759    $ (906)   $    23

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(ii) they are solely responsible for the content, accuracy and originality of
the
information contained therein.

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