April 21, 2006
KOHL'S CORPORATION COMPLETES SALE OF PROPRIETARY CREDIT CARD
MENOMONEE FALLS, Wis., April 21, 2006 Kohl's Corporation
(NYSE: KSS) announced today that it completed the sale of its proprietary
credit card business to JPMorgan Chase (NYSE: JPM). Under the terms
of the purchase and sale agreement, Chase acquired Kohl's private
label credit card accounts and the outstanding balances associated
with the accounts. Kohl's received approximately $1.6 billion in
cash for the account balances outstanding. As previously reported,
Kohl's plans to use the net proceeds to repurchase its common stock,
to fund store expansion and for general corporate purposes.
Additionally, the companies have entered into a multiyear agreement
that provides for Kohl's to receive ongoing payments related to
the profitability of the credit card portfolio. Kohl's and Chase
will also work together on various marketing initiatives designed
to increase Kohl's sales and further enhance credit growth and profitability.
Kohl's will maintain its current credit operations and will continue
to handle all customer service functions and be responsible for
all advertising and marketing related to its credit card customers.
All of Kohl's current credit organization associates will remain
employees of Kohl's. Further, the company expects the credit organization
to grow to support the long-term growth plans of the company.
Kohl's charge card customers will continue to receive the same
great benefits with the use of their charge card. Customers should
continue to use their cards in the same manner as they do today.
Based in Menomonee Falls, Wis., Kohl's is a family-focused, value-oriented
specialty department store offering moderately priced national and
exclusive brand apparel, shoes, accessories, home and beauty products
in an exciting shopping environment. Kohl's operates 749 stores
in 43 states. For a list of store locations and information, or
for the added convenience of shopping online, visit Kohl's Website
Kohl's Investor Relations Contact:
Wes McDonald, Chief Financial Officer, (262) 703-1893
Kohl's Public Relations Contact:
Julie Gardner, Senior Vice President of Marketing, (262) 703-1305
About JPMorgan Chase & Co.
JPMorgan Chase & Co. (NYSE: JPM) is a leading global financial
services firm with assets of $1.2 trillion and operations in more
than 50 countries. The company has more than 100 million credit
cards issued. Under the JPMorgan and Chase brands, the firm serves
millions of consumers in the United States and many of the world's
most prominent corporate, institutional and government clients.
Information about the firm is available at www.jpmorganchase.com.
JPMorgan Chase & Co. Public Relations Contact:
Jessica Iben, (302) 282-6150, Jessica.email@example.com