Exhibit 99.1




                             JCPenney News Release
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<c>                             <c>                     <c>                     <c>
CONTACT
Tim Lyons               Quinton Crenshaw            Eli Akresh                Bob Johnson
Public Relations        Public Relations            Investor Relations        Investor Relations
(972) 431-4834          (972) 431-5581              (972) 431-2207            (972) 431-2217
tmlyons@jcpenney.com    qcrensha@jcpenney.com       eakresh@jcpenney.com      rvjohnso@jcpenney.com
- --------------------    ---------------------       --------------------       --------------------
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               JCPENNEY COMPLETES SALE OF ECKERD FOR $4.5 BILLION

                   $3.5 Billion in Net Cash Proceeds Generated


     PLANO,  Texas,  August  1, 2004 - J. C.  Penney  Company,  Inc.  (NYSE:JCP)
announced  that  it  closed  the  $4.5  billion  sale  of its  Eckerd  drugstore
operations on July 31, 2004. The Company generated approximately $3.5 billion in
net cash  proceeds  after taxes,  fees and other  related  costs.  As previously
announced,   The  Jean  Coutu  Group  (PJC)  Inc.  (TSX:PJC.A)  acquired  Eckerd
drugstores and support facilities located in thirteen Northeast and mid-Atlantic
states, as well as the Eckerd Home Office in Florida. CVS Corporation (NYSE:CVS)
acquired  Eckerd  drugstores  and support  facilities  located in the  remaining
southern  states,  principally  Florida and Texas, as well as Eckerd's  pharmacy
benefits management and mail order businesses.

     Allen Questrom,  Chairman and Chief Executive Officer of JCPenney, said, "I
am pleased  that we  successfully  completed  the sale of Eckerd.  With the sale
finalized,  JCPenney will now be able to focus entirely on its Department  Store
and  Catalog/Internet  business,  where we continue to make significant progress
improving operating performance."

     JCPenney  Executive  Vice  President  and Chief  Financial  Officer  Robert
Cavanaugh will host a live  conference  call and real-time  webcast on August 2,
2004,  beginning at 2:00 p.m.  EDT to review the use of Eckerd  proceeds and the
Company's financial repositioning.  Access to the conference call is open to the
press and general public in a listen only mode. To access the  conference  call,
please dial  973-935-8511  and  reference  the  JCPenney  Conference  Call.  The
telephone  playback will be available for two days beginning  approximately  two
hours  after  the  conclusion  of the  call by  dialing  973-341-3080,  pin code
4956329.  The live webcast may be accessed  via  JCPenney's  Investor  Relations
website  (at   JCPenney.net),   or  on   StreetEvents.com   (for   members)  and
FullDisclosure.com (for media and individual investors).  Replays of the webcast
will be available for up to 90 days after the event.

<page>

     J. C. Penney Corporation,  Inc., the wholly-owned  operating  subsidiary of
the  Company,  is  one of  America's  largest  department  store,  catalog,  and
e-commerce retailers, employing approximately 150,000 associates. As of July 31,
2004, J. C. Penney  Corporation,  Inc. operated 1,018 JCPenney department stores
throughout the United States and Puerto Rico, and 60 Renner department stores in
Brazil. JCPenney Catalog,  including e-commerce, is the nation's largest catalog
merchant of general merchandise,  and JCPenney.com is one of the largest apparel
and home furnishings sites on the Internet. 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.

     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,  competition,   consumer  demand,  seasonality,   economic  conditions,  and
government  activity.  Investors should take such risks into account when making
investment decisions. In addition, non-GAAP terms referenced, such as EBITDA and
free cash flow, are defined and presented in the Company's 2003 Annual Report on
Form 10-K.

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