Using repeated imaging with the WIYN 3.5 m telescope at Kitt Peak, we have identified 24 Cepheids in IC 342. For 20 of them, we have obtained reliable r and i photometry. In addition, we have identified 52 other variables (with varying degrees of data quality) for which we are unable to derive definite periods from the data at hand. Most of these are likely to be semiregular long-period variables. From an analysis of the period-luminosity relation of the 20 unambiguous and well-measured Cepheids in the two passbands, we derive the true distance modulus to be 27.58+/-0.18, corresponding to a distance of 3.3 Mpc. The mean line-of-sight reddening to this sample of Cepheids is derived to be E(r-i)=0.38+/-0.06 mag, which corresponds to E(B-V)=0.63+/-0.10 and extinction Ar=1.41+/-0.22 and AV=2.01+/-0.32 mag. Within the respective uncertainties, these values are consistent with other independent estimates of the reddening. The derived distance and extinction imply that IC 342 rivals our own Galaxy in total brightness, which suggests that the Maffei/IC 342 Group taken together may be larger than the Local Group.