Business Editors

PLANO, Texas--(BUSINESS WIRE)--Jan. 31, 2003

J. C. Penney Corporation, Inc. today announced a major initiative to expand and upgrade its Women's Accessories business, allowing the company to maximize trend-right fashion products for the moderate customer throughout the center core of its stores. The new selections will be in stores by August 1.

"We've seen a strong increase in the sale of accessories, especially in handbags, belts, and fashion jewelry, but there's still tremendous opportunity for growth," said Vanessa Castagna, chairman and chief executive officer of JCPenney stores, catalog and internet. "We believe that with the expansion of this key category, we will become the accessories, fashion and fine jewelry shopping destination. These fundamental key assortment improvements further illustrate our ongoing commitment to our customers and all their fashion needs."

In maximizing accessory growth in the center core, stores will feature larger assortments of popular-brand handbags such as Worthington and St. John's Bay. Additionally, young, contemporary shoppers will find all new lines under brands like Mixit and JCPenney's latest fashion offering, Bisou-Bisou. In fashion jewelry, sterling silver pendants, bracelets, and earrings will be among the newest products developed by Mixit. Other categories included in the expansion will be seasonal accessories such as sunglasses and slides, and our most popular lines of bath & body products. In fragrances, the company will continue to offer popular national brands such as Chanel and Liz Claiborne plus introduce new offerings for the young contemporary customer: Forever Elizabeth and the launch of Celine Dion.

To accommodate the strategic plan for growth in Women's Accessories, the company will discontinue most traditional color and treatment lines including Avon beComing, which was being tested in 89 JCPenney stores. Treatment brands, eb5 and Dermablend, along with customers' favorite cosmetic color kits and gift sets, will continue to be offered in the stores.

J. C. Penney Corporation, Inc.,
embroidered patches the wholly-owned operating subsidiary of the Company, is one of America's largest department store, drugstore, catalog, and e-commerce retailers, employing approximately 250,000 associates. As of October 26, 2002, it operated 1,061 JCPenney department stores throughout the United States, Puerto Rico, and Mexico, and 54 Renner department stores in Brazil. Eckerd Corporation operated 2,656 drugstores throughout the Southeast, Sunbelt, and Northeast regions of the U.S. JCPenney Catalog, including e-commerce, is the nation's largest catalog merchant of general merchandise. J. C. Penney Corporation, Inc. is a contributor to JCPenney Afterschool Fund, a charitable organization committed to providing children with high quality after school programs to help them reach their full potential.

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