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The services Alliance Data provides for both the co-brand and privatelabel credit card programs include account acquisition and activation;receivables funding; card authorization; card issuance; statement generation;direct mail and email marketing services; remittance processing; customerservice functions; and marketing services. Alliance Data will launch fourall-new card-plastic designs for Ann Taylor, including private label andco-brand cards for both the company's Ann Taylor and Ann Taylor LOFT brands.As is consistent with the private label credit card program, the co-brandoffering will be targeted to customers that meet Alliance Data's traditionalcredit quality standards.

Ivan Szeftel, president of Alliance Data's Retail Services, said, "We areexcited about expanding our relationship with Ann Taylor by providing thisfully integrated credit and marketing solution. Our programs are guided byanalytics and results-oriented marketing principles, and we are leveraging ourexpertise and the strength of the Ann Taylor brands to deliver a truly specialprogram to their clients."

About Alliance Data

Alliance Data (NYSE: ADS) is a leading provider of loyalty and marketingsolutions derived from transaction-rich data. The Company manages more than107 million consumer relationships for some of North America's mostrecognizable companies. Through the creation and deployment of customizedsolutions that change consumer behavior, Alliance Data enables its clients tocreate and enhance customer loyalty to build stronger, mutually beneficialrelationships with their customers. Headquartered in Dallas, Alliance Dataemploys approximately 7,000 associates at more than 50 locations worldwide.Alliance Data is a leading provider of marketing-driven credit solutions, andis the parent company of Epsilon(R), a leading provider of multi-channel,data-driven technologies and marketing services, and LoyaltyOne(TM), whichowns and operates the AIR MILES(R) Reward Program, Canada's premier coalitionloyalty program. For more information about the company, visit its web site,www.AllianceData.com.

Alliance Data's Safe Harbor Statement/Forward Looking Statements

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

If one or more of these or other risks or uncertainties materialize, or ifour underlying assumptions prove to be incorrect, actual results may varymaterially from what we projected. Any forward-looking statements contained inthis presentation reflect our current views with respect to future events andare subject to these and other risks, uncertainties and assumptions relatingto our operations, results of operations, growth strategy and liquidity. Theserisks, uncertainties and assumptions include those made with respect to andany developments related to the termination of the proposed merger with anaffiliate of The Blackstone Group, including risks and uncertainties arisingfrom actions that the parties to the merger agreement or third parties maytake in connection therewith. We have no intention, and disclaim anyobligation, to update or revise any forward-looking statements, whether as aresult of new information, future results or otherwise.

"Safe Harbor" Statement under the Private Securities Litigation Reform Actof 1995: Statements in this presentation regarding Alliance Data SystemsCorporation's business which are not historical facts are "forward-lookingstatements" that involve risks and uncertainties. For a discussion of suchrisks and uncertainties, which could cause actual results to differ from thosecontained in the forward-looking statements, see "Risk Factors" in theCompany'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 QuarterlyReports on Form 10-Q for each quarterly period subsequent to the Company'smost recent Form 10-K.

SOURCE Alliance Data Systems Corporation