DALLAS, September 20 /PRNewswire/ --

- The U.K.'s Largest Retailer Selects Epsilon International's Email 
Marketing Platform and Professional Services Team to Develop Permission-Based 
Email Marketing Campaigns

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 Tesco.com. Tesco.com is an online business of Tesco 
Stores Limited, the United Kingdom's largest retailer, with operations in 
Europe, North America, and Asia. Tesco's annual sales are approximately $92 
billion USD.

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

Under the terms of the agreement, Tesco.com will deploy Epsilon
International's proprietary email communications and campaign management
platform, and Epsilon International will provide additional professional
services to help Tesco.com develop highly targeted email campaigns to acquire
and retain customers and generate increased sales through up-sell and
cross-sell opportunities. Epsilon International will also provide strategic
guidance and training to help Tesco deliver and track Tesco.com's broad range
of permission-based email campaigns throughout Europe.

"Tesco.com has partnered with Epsilon International to continue our
tradition of bringing constant improvements to our email campaigns. We look
forward to working with Epsilon International to build upon our success in
email marketing planning and delivery," said Kendra Banks, marketing director
for Tesco.com.

Epsilon International continues to see growth opportunities in the
European marketplace consistent with the forecast from Forrester Research,
B2C Email Marketing In Europe: 2004 to 2010, October 5, 2005, which predicts
that the market for email services in Europe will more than double in the
next five years, to 1.25 billion euros (or the equivalent to approximately
$1.73 billion USD).

"Tesco.com is a sophisticated marketer, and we are honored that they have
chosen Epsilon International to guide and support their email marketing
efforts," said Ted Wham, Epsilon International's senior vice president and
general manager, European operations. "As Tesco.com develops even more
advanced email campaigns, their customers will benefit from receiving more
relevant communications at the right time and in the right place. Their
further integration of online marketing programs demonstrates a clear and
ongoing commitment to email as a vital, cost-effective, and high-performing
marketing communications 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.

About Alliance Data

Alliance Data (NYSE: ADS) is a leading provider of transaction services,
credit services, and loyalty and marketing services, managing over 105
million consumer relationships for some of North America's most recognizable
companies. 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 approximately 8,000
associates at more than 40 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 web
site, 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.

Web site: http://www.AllianceData.com
              http://www.epsilon.com
              http://www.Tesco.com