Over $2 Million Renovation Under Way as Part of Company’s Transformation of

In-Store Customer Experience

Enhancements Include the Addition of a

Sephora inside jcpenney Beauty Boutique

PLANO, Texas (March 31, 2011) – jcpenney, America’s shopping destination for discovering great styles at compelling prices, is renovating its store in Albany, Ga., as part of the Company’s continued investment in its existing stores.  Upon completion in August, the Albany Mall store will have the look and feel of a new jcpenney store – highlighting jcpenney’s most innovative new brands and concepts.

“Over the last few years jcpenney has been transformed into a destination for great style, and our planned improvements will vividly showcase our selection of new and fashionable brands,” jcpenney Store Manager Joseph Iles said.  “We look forward to sharing our new look with our customers as they re-discover all that jcpenney has to offer.”

The over $2 million renovation of the Albany store is among a range of store improvement projects included in jcpenney’s $650 million capital expenditures plan for 2011.  In addition to two new stores opening this spring and one store opening this fall, the enhancements include 69 major store renovations and the addition of 77 Sephora inside jcpenney boutiques, bringing the total number of Sephora inside jcpenney locations to 307.

The Albany Mall store will introduce a full-service Sephora inside jcpenney, the ultimate beauty destination.  Located prominently in the center of the store, the 2,000-square-foot beauty boutique will feature the most desired brands in makeup, skincare, hair care, fragrance, and accessory products, and will be staffed by a team of specially trained beauty consultants.

The store will feature two new offerings in unique shop-within-a-shop environments – MNG by Mango® and Call It Spring®. MNG by Mango delivers a complete European fast-fashion collection of contemporary women’s apparel, handbags, accessories and footwear. Call It Spring is a brand created by The Aldo Group for on-trend, modern footwear and handbags.

The complete remodel of the 75,000-square-foot store will also include modern fixtures, improved lighting and new signage and graphics to make it easier to navigate the store and locate the hottest trends from brands such as Liz Claiborne®, I © Ronson®, JOE Joseph Abboud® and nicole by Nicole Miller®.

Other improvements include an updated fine jewelry department featuring Modern Bride™, a modernized shoe department, new carpet and tile, improvements to fitting rooms and restrooms, and the introduction of jcp services, the in-store destination where customers can order, pick up and return jcp.com purchases, complete gift registry transactions, manage their JCP Rewards card accounts and more.

jcpenney has operated stores in Georgia since 1924.  The Albany Mall store opened in 1988.