Alliance Data's Epsilon International Signs Agreement With eBay Joint Venture EachNet to Provide Email Marketing Services in China

Alliance Data's Epsilon International Signs Agreement With eBay Joint Venture EachNet to Provide Email Marketing Services in China

October 11, 2007

Shanghai-based Online Auctioneer Selects Epsilon's Email
Marketing Platform and Professional Services International
Team to Power Complex Customer Communication Program

    DALLAS, Oct. 11 /Xinhua-PRNewswire/ -- Alliance Data
Systems Corporation (NYSE: ADS), a leading provider of
transaction services, credit services and marketing
services, today announced that the global operations of its
Epsilon business, Epsilon International, has signed a
multi-year agreement to provide permission-based email
marketing solutions and services to online auctioneer
EachNet in China. EachNet is a joint venture between San
Jose, California-based online auctioneer eBay and
Shanghai-based Web portal and wireless Internet provider
TOM Online. Founded in 1999, EachNet's extensive customer
base includes approximately 30 million consumers throughout
mainland China.

    ( Logo: 
http://www.newscom.com/cgi-bin/prnh/20051024/ADSLOGO )

    Under the terms of the agreement, EachNet will deploy
Epsilon International's proprietary email communications
and campaign management platform geared toward notifying
consumers of goods for auction based on their preferences.
Epsilon International will provide additional professional
services to help EachNet manage and further develop its
complex, triggered email account messaging, and to create
and launch timely, relevant marketing campaigns to EachNet
customers. More than 300 million permission-based
customized email communications will be sent annually, with
volume expected to coincide with the growth in China's
rapidly increasing online universe.  

    "We are excited to work with the Epsilon
International team to advance our email communications and
help fuel aggressive growth by developing deeper
relationships with our customers," said an EachNet
spokesperson. "The Epsilon International team's
dedication to maximizing marketers' ROI while focusing on
the customer experience fits perfectly with our values and
direction. Epsilon International is a partner that can help
guide and support us as our needs expand and evolve over the
long-term."

    EachNet selected Epsilon International's China-based
team after an extensive search for an email service
provider. Epsilon International's email delivery expertise,
experienced client services team, and depth of knowledge of
the Chinese marketplace helped distinguish the company from
others under consideration.

    In the last 12 months Epsilon International has
experienced a period of rapid growth in the Asia-Pacific
region, expanding its offices in Shanghai, Hong Kong,
India, and Singapore, and broadening its service offering
to clients throughout China, Australia, and Southeast Asia.
Epsilon International expects to continue its growth,
especially in China, where eMarketer, an e-business and
online marketing research firm, forecasts the number of
Internet users to increase to 156.2 million by the end of
2007, representing a 13-percent increase over 2006.

    "The opportunity to work with an established brand
and category pioneer such as EachNet enables us to show the
universal value of leveraging customer insight in rapidly
expanding marketplaces," said Dominic Powers, senior
vice president, Asia Pacific at Epsilon International.
"We are excited to support an enterprise of this
magnitude and look forward to helping EachNet achieve
record results, deepen its customer relationships, and
increase marketing ROI in this important channel."

    About Epsilon

    Epsilon is a leading provider of multi-channel,
data-driven marketing technologies and services. Through
its combination of client-centric marketing solutions,
Epsilon helps leading companies understand, measure, manage
and optimize their customer relationships. The
organization's end-to-end suite of integrated services
includes strategic consulting, creative, data, database and
loyalty technology, analytics, email and direct marketing
distribution services to produce multi-channel marketing
programs that generate measurable results throughout the
customer lifecycle.

    Founded in 1969, Epsilon is headquartered in Dallas and
comprises five business groups including Strategic Database
Solutions, Interactive Services (formerly Epsilon
Interactive), Agency and Direct Services, Data Services
(formerly CPC Associates, Inc.) and Abacus Data Services
(Abacus). Epsilon works with more than 2,200 blue-chip
brands and has offices throughout the United States, Europe
and Asia. Epsilon is an Alliance Data company. For more
information, visit www.epsilon.com.

    Epsilon International is an operating unit of Epsilon.
Epsilon International is a trading name of Alliance Data
FHC, Inc.

    About Alliance Data 

    Alliance Data (NYSE:  ADS) is a leading provider of
marketing, loyalty and transaction services, managing over
120 million consumer relationships for some of North
America's most recognizable companies. Using
transaction-rich data, Alliance Data creates and manages
customized solutions that change consumer behavior and that
enable its clients to create and enhance customer loyalty to
build stronger, mutually beneficial relationships with their
customers. Headquartered in Dallas, Alliance Data employs
over 9,000 associates at more than 60 locations worldwide.
Alliance Data's brands include AIR MILES(R), North
America's premier coalition loyalty program, and
Epsilon(R), a leading provider of multi-channel,
data-driven technologies and marketing services. For more
information about the company, visit its website,
www.AllianceData.com.

    Alliance Data's Safe Harbor Statement/Forward Looking
Statements 

    This release may contain forward-looking statements
within the meaning of Section 27A of the Securities Act of
1933, as amended, and Section 21E of the Securities
Exchange Act of 1934, as amended. Such statements may use
words such as "anticipate," "believe,"
"estimate," "expect,"
"intend," "predict,"
"project" and similar expressions as they relate
to us or our management. When we make forward-looking
statements, we are basing them on our management's beliefs
and assumptions, using information currently available to
us. Although we believe that the expectations reflected in
the forward-looking statements are reasonable, these
forward-looking statements are subject to risks,
uncertainties and assumptions, including those discussed in
our filings with the Securities and Exchange Commission.

    If one or more of these or other risks or uncertainties
materialize, or if our underlying assumptions prove to be
incorrect, actual results may vary materially from what we
projected. Any forward-looking statements contained in this
news release reflect our current views with respect to
future events and are subject to these and other risks,
uncertainties and assumptions relating to our operations,
results of operations, growth strategy and liquidity. These
risks, uncertainties and assumptions include those made with
respect to and any developments related to the company's
proposed merger with Aladdin Merger Sub, Inc., an affiliate
of The Blackstone Group, announced on May 17, 2007. The
company cannot provide any assurance that the proposed
merger transaction will be completed. We have no intention,
and disclaim any obligation, to update or revise any
forward-looking statements, whether as a result of new
information, future results or otherwise.

    "Safe Harbor" Statement under the Private
Securities Litigation Reform Act of 1995: Statements in
this press release regarding Alliance Data Systems
Corporation's business which are not historical facts are
"forward-looking statements" that involve risks
and uncertainties. For a discussion of such risks and
uncertainties, which could cause actual results to differ
from those contained in the forward-looking statements, see
"Risk Factors" in the company's Annual Report on
Form 10-K for the most recently ended fiscal year. Risk
factors may be updated in Item 1A in each of the company's
Quarterly Reports on Form 10-Q for each quarterly period
subsequent to the company's most recent Form 10-K.


    For more information, please contact:

    Alliance Data

     Analysts - Investors:
     Ed Heffernan
     Phone: [phone]
     Email: [e-mail]

     Media:
     Shelley Whiddon
     Phone: [phone]
     Email: [e-mail]

    Upstream Asia

     Dorothy Fung
     Phone: [phone]

    Greenough Communications

     Scott Bauman 
     Phone: [phone]