PR - Alliance Data Completes Renewal of Final Portion of $2.7 Billion Financing Goal

Alliance Data Systems Corporation (NYSE: ADS), a leading provider of loyalty and marketing solutions derived from transaction-rich data, today announced that its private label credit card banking subsidiary, World Financial Network National Bank, has completed the renewal of its $400 million conduit facility. This $400 million conduit facility renewal completes the Company’s final portion of its $2.7 billion financing goal.

The facility, which will fund existing and new private label credit card programs, currently holds approximately $265 million in card assets, providing both current financing as well as an additional source of currently untapped liquidity. The facility was renewed by the Company’s current group of conduit providers including Barclays Capital and JPMorgan.

Ed Heffernan, executive vice president and chief financial officer of Alliance Data, commented, "Despite the current volatility in the capital markets, this transaction once again demonstrates that liquidity is readily available for companies with strong track records and high-quality assets. As we entered the latter part of 2007, we had approximately $2.7 billion of off- balance sheet facilities that would need to be renewed or established. The renewal of our $400 million conduit facility completes our $2.7 billion financial goal.

"Liquidity for the Company remains at an all-time high," Mr. Heffernan continued. "We continue to benefit from the financial flexibility of $3.8 billion in immediate liquidity, of which $1.8 billion remains unused, as well as from an overall leverage ratio of less than 1x. The Company’s ability to continue to access the capital markets at favorable rates, significant committed but unused liquidity and an exceptionally conservative leverage ratio all position Alliance Data well for another successful year in 2008."

The "all-in" funding rate on Alliance Data’s renewed facility is approximately 100 basis points below the Company’s budgeted rate for this transaction. Although spreads on funding have widened in recent months, the base rates used on transactions of this nature (e.g., LIBOR, Fed Funds, commercial paper) have improved at more dramatic rates. The expected savings from lower funding costs will serve as a natural hedge against an anticipated moderate increase in credit losses. Funding saves remain firmly on track to mitigate those increases.

Thus, Alliance Data’s private label credit card business continues to offer stability and visibility in these uncertain macro-economic times. Alliance Data’s business model is also enhanced by its recession-resistant and high-growth engines, namely its Loyalty AIR MILES® Reward Program in Canada and its Epsilon transaction-based marketing business.