Alliance Data Issues Statement

DALLAS, Nov. 29 /PRNewswire-FirstCall/ -- Alliance Data SystemsCorporation (NYSE: ADS), a leading provider of loyalty and marketing solutionsderived from transaction-rich data, is today issuing a statement in responseto certain rumors in the market regarding the status of Alliance Data'sdefinitive agreement to be acquired by Blackstone Capital Partners V L.P., anaffiliate of The Blackstone Group, in a transaction valued at approximately$7.8 billion, including the assumption of certain debt. Under the terms of themerger agreement, Blackstone will acquire all of the outstanding common stockof Alliance Data for $81.75 per share in cash.

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While it is has been and remains Alliance Data's policy not to addressmarket rumors, in the interest of its stockholders, management is todayconfirming that Alliance Data has not been approached by Blackstone or itsaffiliates regarding any renegotiation of the $81.75 per share cash purchaseprice to be paid to holders of Alliance Data common stock under the terms ofthe agreement and plan of merger entered into on May 17, 2007 among AllianceData, Aladdin Holdco, Inc. and Aladdin Merger Sub, Inc. Further, Alliance Datais today confirming that neither its board of directors nor the specialcommittee of the board of directors formed in connection with the transactionscontemplated by the merger agreement has met, is meeting or has scheduled anymeeting regarding any renegotiation of the terms of the merger agreement. Theparties continue to work together to consummate the transaction.

Alliance Data has no intention, and specifically disclaims any obligation,to provide any update with respect to the matters addressed in this release orto otherwise address any rumors in the market generally, and Alliance Data'spolicy with respect to addressing market rumors remains in place.

Alliance Data's Safe Harbor Statement/Forward Looking Statements

This release may contain forward-looking statements within the meaning ofSection 27A of the Securities Act of 1933, as amended, and Section 21E of theSecurities Exchange Act of 1934, as amended. Such statements may use wordssuch as "anticipate," "believe," "estimate," "expect," "intend," "predict,""project" and similar expressions as they relate to us or our management. Whenwe make forward-looking statements, we are basing them on our management'sbeliefs and assumptions, using information currently available to us. Althoughwe believe that the expectations reflected in the forward-looking statementsare reasonable, these forward-looking statements are subject to risks,uncertainties and assumptions, including those discussed in our filings withthe Securities and Exchange Commission.

If one or more of these or other risks or uncertainties materialize, or ifour underlying assumptions prove to be incorrect, actual results may varymaterially from what we projected. Any forward-looking statements contained inthis news release reflect our current views with respect to future events andare subject to these and other risks, uncertainties and assumptions relatingto our operations, results of operations, growth strategy and liquidity. Theserisks, uncertainties and assumptions include those made with respect to andany developments related to the company's proposed merger with Aladdin MergerSub, Inc., an affiliate of The Blackstone Group, announced on May 17, 2007.The company cannot provide any assurance that the proposed merger transactionwill be completed. We have no intention, and disclaim any obligation, toupdate or revise any forward-looking statements, whether as a result of newinformation, future results or otherwise.

"Safe Harbor" Statement under the Private Securities Litigation Reform Actof 1995: Statements in this press release regarding Alliance Data SystemsCorporation's business which are not historical facts are "forward-lookingstatements" that involve risks and uncertainties. For a discussion of suchrisks and uncertainties, which could cause actual results to differ from thosecontained in the forward-looking statements, see "Risk Factors" in thecompany'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 QuarterlyReports on Form 10-Q for each quarterly period subsequent to the company'smost recent Form 10-K.SOURCE Alliance Data Systems CorporationAnalysts, Investors, Ed Heffernan, +1-972-348-5196,Ed.Heffernan@alliancedata.com, or Media, Shelley Whiddon, +1-972-348-4310,Shelley.whiddon@alliancedata.com, both of Alliance Data Corporation