JCPenney and MTV Partner to Create Groundbreaking Multiplatform Approach to Achieve a Deeper Emotional Connection and Relevance with Youth

JCPenney's Live Ads to Blur the Edges between Advertising and Show Content During MTV Video Music Awards

J.C. Penney, Inc. (NYSE:JCP) will air its first-ever live ad concept at this year's MTV Video Music Awards show, the hottest entertainment event of the year for teens and young adults and the No. 1 cable program of the year for persons ages 12 to 34. Aimed at achieving a deeper emotional connection and relevance to youth, the live ads build on JCPenney's exclusive retail sponsorship of the MTV VMAs.

"We are looking to blur the edges between advertising and show content," said Michael Cape, JCPenney's vice president of brand marketing. "By making the viewers feel more integrated into our advertisements we are able to achieve a deeper emotional connection with our key audience. These live ads are one way that JCPenney continues to break through to consumers in a meaningful way and is a concept everyone will want to watch."

The seamless movement from the awards show into the ad is driven by technology that allows a screen with the awards show to be broadcast live into a screen embedded into the ad. Panning in and out of different teens' and kids' bedrooms, JCPenney's two live ads will reference its current Back-to-School ads, ultimately panning into the live MTV VMA show inside New York's Radio City Music Hall. JCPenney will also feature all new spots during the MTV VMAs including ads for Junior's and Young Men's as well as the premiere of the Company's fall fashion ads.

The live ads will culminate JCPenney's Back-to-School season campaign which included online content on MTV websites linked from the JCPenney brand experience sitelet, www.jcpenneybts.com and a VMA "Insider" contest. As part of the campaign, two winners were chosen through the JCPenney VMA "Insider" contest and will receive a trip to New York City and access to exclusive VMA events, including appearing on MTV and being a special guest at the MTV Video Music Awards where they will report on the parties, exclusive rehearsals, red carpet action and have a video diary of their experience posted on MTV Overdrive. JCPenney will feature highlights of the MTV "Insider" contest during the red carpet pre-show.

"The ongoing JCPenney and MTV partnership is a co-branded effort to authentically reach youth," said Tim Rosta, MTV's senior vice president of integrated marketing. "By pulling out all the stops this year with an online, on-air, radio, on the ground and in-store campaign, JCPenney's approach is a perfect fit to reach our audience, who experiences entertainment on multiple platforms."

Hosted by Jack Black, the MTV Video Music Awards will air live on Thursday, Aug. 31, at 8 p.m. ET and feature a line up of performances including Beyonce, Justin Timberlake, T.I., Panic! At the Disco, Ludacris, The Killers and more.

About JCPenney

J. C. Penney Corporation, Inc., the wholly owned operating subsidiary of J. C. Penney Company, Inc., is one of America's largest department store, catalog, and e-commerce retailers, employing approximately 151,000 associates. As of July 29, 2006, J. C. Penney Corporation, Inc. operated 1,021 JCPenney department stores throughout the United States and Puerto Rico. JCPenney is the nation's largest catalog merchant of general merchandise, and jcp.com is one of the largest apparel and home furnishings sites on the Internet.

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