Old Copper Co. Inc. (f/k/a CPPRQ/JCPNQ JC Penney)

[Large Green]

JCPNQ Expert Report by CR3 - Snyder

JCP’s robust cash position & low debt service supports reorganization

? ExcludingDIPfunds,JCPhasapproximately$900MMofcash

? Cashissufficienttopayadministrativeandexitcosts;residualcashand
continued operating cash flow support no additional new capital required

? Reaffirminginsteadofreplacingexistingdebtishighlydesirable-existing interest rates are low; principal amortization is minimal

? Retainingrealpropertyassetsprovideshardvalues,andfurtherprovidesa source of future liquidity - via asset sales or borrowing against $1.4B in unencumbered real estate

? Futuredebtmaturitiescanberefinancedinamorestablemarket

? Significantvalueremainsaftersatisfactionofsecureddebt;availablefor
unsecured creditors, and potentially equity

? ReorganizationpermitsJCPanditscreditorstoreaptherewardsofholiday cash flows

Reorganization maximizes value and recovery for stakeholders and likely creates a “100 cent plan”