NEWS RELEASE

Contact: Alliance Data
Julie Prozeller – Analysts/Investors
Financial Dynamics
212.850.5721
alliancedata@fd.com

Shelley Whiddon – Media
214.494.3811
Shelley.Whiddon@alliancedata.com

Alliance Data Closes on New $221 Million Term Loan; Increases Available Liquidity at the
Corporate Level to Approximately $500 Million

DALLAS, TX., Aug. 9, 2010 – Alliance Data Systems Corporation (NYSE: ADS), a leading provider of loyalty and marketing solutions derived from transaction-rich data, today announced that the Company has completed a new term financing facility of $221 million, which may be increased up to $300 million within the next 60 days. Proceeds will be used to repay existing indebtedness and to provide incremental corporate level liquidity. The facility matures March 30, 2012. The global syndicate totaled 11 banking institutions, including both existing banking relationships as well as new ones.

The funding rate on the term of the loan is LIBOR plus 250 basis points (approx. 3% currently). Lead agents on the bank facility were BMO Capital Markets and SunTrust Robinson Humphrey, Inc. Agent banks included Royal Bank of Canada; Wells Fargo Bank, National Association; and Sumitomo Mitsui Banking Corporation.

With this additional facility and after paying approximately $117 million to acquire Equifax’s Direct Marketing Services (DMS) division, Alliance Data now has access to approximately $500 million of available liquidity at the corporate level.

Charles Horn, chief financial officer for Alliance Data, said, “We have now completed all of Alliance Data’s capital raising plans for 2010. Demand for the new term loan was strong and, as such, we expect to upsize the facility within the next 60 days. After closing, our leverage at the corporate level remains prudent with a core debt to operating cash flow ratio below 2.7 to 1, which is well within our covenant requirements. The added liquidity provides flexibility to expand our growth and capital deployment initiatives.”

About Alliance Data
Alliance Data (NYSE:ADS — News) and its combined businesses is North America’s largest and most comprehensive provider of transaction-based, data-driven marketing and loyalty solutions serving large, consumer-based industries. The Company creates and deploys customized solutions, enhancing the critical customer marketing experience; the result is measurably changing consumer behavior while driving business growth and profitability for some of today’s most recognizable brands. Alliance Data helps its clients create and increase customer loyalty through solutions that engage millions of customers each day across multiple touch points using traditional, digital, mobile and other emerging technologies. Headquartered in Dallas, Alliance Data employs approximately 7,400 associates at 50 locations worldwide.

Alliance Data is a leading provider of marketing-driven credit solutions, and is the parent company of Epsilon®, a leading provider of multi-channel, data-driven technologies and marketing services, and LoyaltyOne™, which owns and operates the AIR MILES® Reward Program, Canada’s premier coalition loyalty program. For more information about the company, visit our web site, www.AllianceData.com, or you can follow us on Twitter at www.Twitter.com/AllianceData.

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 the anticipated effects of the CARD Act and 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 presentation 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. 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 presentation 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.

# # #