Alliance Data Signs Long-Term Renewal Agreement With Leading Furniture Retailer The RoomPlace

DALLAS, July 14, 2011 /PRNewswire/ — Alliance Data Systems Corporation (NYSE:
ADS), a leading provider of loyalty and marketing solutions derived from
transaction-rich data, today announced it has signed a long-term renewal
agreement to continue providing private label credit card services for The
RoomPlace. The Chicago-based multichannel retailer, which celebrates its 100th
anniversary next year, offers high-quality home furnishings through 22 locations
throughout Illinois and Indiana. The RoomPlace posts annual sales of
approximately $150 million, and is listed by Furniture Today magazine as a “Top
100 U.S. Furniture Store.”

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Under terms of the agreement, Alliance Data will continue providing The
RoomPlace with private label credit card services, including account acquisition
and activation; receivables funding; card authorization; private label credit
card issuance; statement generation; remittance processing; customer service
functions; and marketing services.

Through various credit and marketing tools, Alliance Data will provide
additional RoomPlace Credit Card account-holder benefits, such as flexible
financing options designed to support repeat purchases and customer
satisfaction, as well as advance notification of sales and promotions.

“We have a powerful team here at The RoomPlace and we have made significant
improvements in marketing, merchandising and operations. We are pleased to be
supported by Alliance Data whose private label credit program continues to be a
key driver of sales and customer loyalty for The RoomPlace,” said Steve
Giordano, chief executive officer of The RoomPlace. “Our company began in 1912
as a single store, and today with 22 stores we prepare to celebrate our 100th
year anniversary, and are proud to be building on that great tradition. Selling
furniture is about fashion and relationships and it works best with trusted
partners who understand our customers’ wants and needs. Alliance Data shares our
focus on creating a long-term relationship with our customers and we are proud
to have them as a partner.”

Ivan Szeftel, president of Alliance Data Retail Services, added, “We look
forward to continuing to contribute to the growth of a business with a strong
legacy and market share leadership position in the regions it serves. As The
RoomPlace brand continues to grow and evolve, Alliance Data looks forward to the
opportunity to collaboratively enhance the company’s value proposition for The
RoomPlace cardholders, and in turn, measurably drive sales and help The
RoomPlace achieve both its near- and long-term business goals.”

About The RoomPlace

The RoomPlace has been building relationships with customers since 1912, and is
listed by Furniture Today magazine as a “Top 100 U.S. Furniture Store.”
Headquartered in Lombard, Ill., the company operates 22 stores and is the
largest furniture retailer in Illinois and Indiana. The RoomPlace makes
furniture buying simple for customers, thanks to showrooms with completely
furnished, coordinated rooms created by the company’s team of experienced
designers. Customers not only save on every piece of furniture they buy, they
save even more when they buy a complete room. For more information, please visit
theroomplace.com.

About Alliance Data

Alliance Data® (NYSE: ADS) 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 8,500 associates at more than 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, potential
effects of the Epsilon data theft incident, 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.

SOURCE Alliance Data Systems Corporation