EXHIBIT 99(b)
                             JCPenney News Release

CONTACT
Stephanie Brown              Eli Akresh                Bob Johnson
Public Relations             Investor Relations        Investor Relations
(972) 431-4655               (972) 431-2207            (972) 431-2217
smbrown@jcpenney.com         eakresh@jcpenney.com      rvjohnso@jcpenney.com
----------------------       --------------------      ---------------------


             JCPENNEY SUCCESSFULLY COMPLETES CONVERTIBLE NOTE SALE

                   Offering Amount Increased to $650 Million


     PLANO, Texas, October 15, 2001 -- J. C. Penney Company, Inc. (NYSE:JCP)
today announced the completion of the sale of $650 million of 5% convertible
subordinated notes due 2008. The total amount of notes sold, which exceeds the
previously announced amount of $600 million, reflects the exercise of the
initial purchasers' option to acquire an additional $50 million of notes. The
notes are convertible into 22.8 million shares of JCPenney Common Stock at the
option of the holders, at a conversion price of $28.50 per share.  The notes are
callable by the Company on or after October 20, 2004.  Proceeds from the
offering are expected to be used primarily for upcoming debt maturities.

     Commenting on the transaction, Allen Questrom, Chairman and Chief Executive
Officer, said, "We are pleased with the support received from investors and our
continuing ability to effectively access the capital markets. While we continue
to believe that it will take time to reach our financial targets, the Company
has made significant strides this year in efforts to improve the operating
performance of its businesses. Proceeds from this sale further strengthen our
financial condition and increase our financial flexibility."

     The notes were offered to qualified institutional buyers in reliance on
Rule 144A and to persons outside the United States under Regulation S. The
notes, and the JCPenney Common Stock issuable upon conversion of the notes, have
not been registered under the Securities Act of 1933, as amended, and they may
not be offered or sold in the United States absent registration or an applicable
exemption from registration requirements.


                                    (more)

     This press release shall not constitute an offer to sell or the
solicitation of an offer to buy any security and shall not constitute an offer,
solicitation or sale in any jurisdiction in which such offering, solicitation or
sale would be unlawful.

     J. C. Penney Company, Inc. is one of America's largest department store,
drugstore, catalog, and e-commerce retailers, employing approximately 270,000
associates. The Company operates approximately 1,080 JCPenney department stores
in all 50 states, Puerto Rico, and Mexico. In addition, the Company operates
approximately 50 Renner department stores in Brazil. Eckerd operates
approximately 2,650 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 Company, Inc. is
the sponsor of JCPenney Afterschool, a partnership committed to providing
children with high-quality afterschool 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.

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