Alliance Data Systems Signs Five-Year Agreement With Direct Energy to Provide Customer Information System Services and Customer Care * Five-Year Agreement Provides Additional Momentum For Alliance's Utility Industry Growth Engine DALLAS, Nov. 15 /PRNewswire-FirstCall/ -- Alliance Data Systems Corp., a leading provider of transaction services, credit services and marketing services, today announced that it has renewed and expanded its agreement with Direct Energy, North America's largest non-utility retail energy provider. As a result of this transaction, Alliance will continue to provide comprehensive BPO (Business Process Outsourcing) services including CIS hosting and managed services, customer care, statement generation, remittance processing, bill presentment and collections for Direct Energy in Texas, and will now also be responsible for supporting Direct Energy's residential and small business customers located primarily in the Dallas and Houston markets. The new agreement makes Direct Energy the largest retail deregulated customer for Alliance's Utility division. In addition, Alliance Data is in a position to support Direct Energy's initiative to cross-sell additional home services (HVAC and plumbing services) to its existing and future energy customers. To optimize scale and efficiency, Direct Energy's CIS accounts will be consolidated on a common platform by late 2005. Direct Energy's customer care center operations for Texas will be located in Alliance Data's facility in Dallas. "This extension and expansion is a direct result of the partnership we have with Alliance Data," said Phil Tonge, president of Direct Energy's Texas operations. "Alliance Data understands the complexities of the utility industry and is actively finding ways to help us provide a higher quality, differentiated service to residential and business customers alike." "We are delighted to extend and expand our relationship with Direct Energy," said Mike Beltz, president, Utilities Services, Alliance Data Systems. "We are not only proud of Direct Energy's decision to renew our agreement for existing services, but also of the confidence they've shown in us to entrust their Texas customers to Alliance. With this expanded account base and consolidated platform, we are now poised to assist Direct Energy as it grows and provides a wide range of services for its customers." About Alliance Data Systems Based in Dallas, Alliance Data Systems is a leading provider of transaction services, credit services and marketing services. The company assists retail, petroleum, utility and financial services clients in managing the critical interactions between them and their customers. Alliance Data manages approximately 95 million consumer relationships for some of North America's most recognizable companies and operates and markets the largest coalition loyalty program in Canada. Alliance Data Systems employs approximately 7,500 associates at more than 30 locations in the United States and Canada. For more information about the company, visit its web site, http://www.alliancedatasystems.com/. Alliance Data Systems' Safe Harbor Statement/Forward Looking Statements This news 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. 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. DATASOURCE: Alliance Data Systems Corp. CONTACT: Investors, Ed Heffernan, CFO, +1-972-348-5191, , Media, Tony Good, +1-972-348-5425, , both of Alliance Data Systems; or Cynthia Cordova-Media of Direct Energy, +1-972-409-3280, Web site: http://www.alliancedatasystems.com/

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