Companies Team Up to Support Air Quality Efforts at LA, Long Beach Ports

PLANO, Texas & CONCORD, Calif., (Dec. 9, 2008) — Taking a major step toward achieving their goal to convert 100 percent of the truck fleet handling JCPenney imports at the ports of Los Angeles and Long Beach to low-emissions, clean-diesel technology, J. C. Penney Company, Inc. (NYSE:JCP) and PDS Trucking, Inc., a subsidiary of Pacer Distribution Services, Inc., have taken delivery of more than 20 new Kenworth T-800 tractors that will replace aging diesel trucks currently in use by independent owner-operators in Pacer’s port network.

“We’re committed to clearing the air around the ports by putting clean trucks on the road as quickly as we can,” said Marie Lacertosa, senior vice president and director of logistics for JCPenney. “This fleet conversion demonstrates that the private sector is capable of implementing sustainable, long-term solutions to port environmental issues that also preserve jobs and maintain the efficient flow of goods.”

Kent Prokop, president of PDS Trucking, added, “We are very pleased to be supporting our customer, JC Penney and the Coalition for Responsible Transportation (CRT) in their efforts to reduce emissions by adding clean trucks to our owner-operator fleet. Pacer will be taking delivery of up to 230 of these trucks by early 2009.”

As members of CRT, JCPenney and Pacer have committed to sponsoring the fleet conversion to support the Los Angeles and Long Beach ports’ 2012 air quality goals. The companies expect the fleet hauling JCPenney merchandise to meet the ports’ emissions goals by early 2009, well ahead of the ports’ deadlines, while also preserving the livelihoods of independent owner-operators in the port trucking community.

The voluntary truck replacement program is based on a leasing model providing owner-operators with new, clean trucks through a private-sector financial arrangement. The financing model represents an innovative and cost-effective way for the private sector to meet recently adopted goals for the retirement of pre-2007 diesel trucks at the Ports of LA and Long Beach.

Independent owner-operators will begin using the trucks in early December to move containers of JCPenney merchandise out of the ports, where a substantial portion of the retailer’s apparel, home furnishings, footwear and accessories arrive from the Asia-Pacific region. The new T-800 trucks, with a 38-inch Aero sleeper, are powered by a Cummins ISX clean-diesel engine capable of operating on ultra-low-sulfur diesel fuel or B20 biodiesel. Each clean-diesel truck with the Cummins ISX engine reduces nitrogen oxide emissions by 78 percent and particulate matter emissions by 90 percent compared with a typical truck it replaces.

ABOUT JCPenney

JCPenney is one of America's leading retailers, operating 1,093 department stores throughout the United States and Puerto Rico, as well as one of the largest apparel and home furnishing sites on the Internet, jcp.com, and the nation's largest general merchandise catalog business. Through these integrated channels, JCPenney offers a wide array of national, private and exclusive brands which reflect the Company's commitment to providing customers with style and quality at a smart price. Traded as "JCP" on the New York Stock Exchange, the Company posted revenue of $19.9 billion in 2007 and is executing its strategic plan to be the growth leader in the retail industry. Key to this strategy is JCPenney's "Every Day Matters" brand positioning, intended to generate deeper, more emotionally driven relationships with customers by fully engaging the Company's 155,000 Associates to offer encouragement, provide ideas and inspire customers every time they shop with JCPenney.

ABOUT PACER INTERNATIONAL (www.pacer-international.com)


Pacer International, a leading asset-light North American freight transportation and third-party logistics provider, through its intermodal and logistics operating segments, offers a broad array of services to facilitate the movement of freight from origin to destination. The intermodal segment offers wholesale services provided by Pacer Stacktrain (cost-efficient, two-tiered rail transportation for containerized shipments) and Pacer Cartage (local trucking), as well as retail services through its Rail Brokerage group (intermodal marketing). The logistics segment provides retail truck brokerage, trucking, warehousing and distribution, international freight forwarding, and supply-chain management services. Pacer International is headquartered in Concord, California. Its intermodal and logistics operating segments are headquartered in Concord, California, and in Dublin, Ohio, respectively.