Alliance Data to Provide Private Label Credit Card Services for Peach Direct

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 agreement with PD Financial Corporation, which currently operates under the trade name PeachDirect, to provide private label credit card services for its catalog and web channels. In early fall 2008, PD Financial plans to launch its new brand identity as VENUE for both its catalog and web channels, with the private label credit card program launch coinciding with the new brand. Headquartered in Los Angeles, PD Financial is a fast-growing retailer of luxury merchandise, including high-end brands of electronics (e.g., Panasonic, Sony, Bose, Toshiba); beauty/fashion accessories (Lancome, Prada, Yves Saint Laurent), jewelry and watches (TAG Heuer, Movado, ESQ, Armani, Gucci), and home products (Capresso coffee makers, luxury bedding/linens, Italian leather furniture), among others. PD Financial’s sales in 2007 reached $200 million.

Under terms of the agreement, Alliance Data will provide 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. The card program will build customer loyalty and drive repeat purchasing through a customer rewards program, which will provide incentives that recognize and reward cardholders for their patronage.

"We selected Alliance Data to be our private label program partner not only for their retail and credit expertise, but for their sophisticated analytics and extensive marketing insights," said Ron Drori, chief executive officer of PD Financial Corporation. "Working with Alliance Data to understand better our customers’ needs and purchasing behaviors, we have the ability to communicate more effectively, while also recognizing and rewarding our customers for their purchases. We’re focused on engaging customers and building a loyal, long-term relationship with them, and this private label program is absolutely critical to making that happen."

"We are excited to be working with PD Financial, as we will leverage our extensive multi-channel retail expertise and tools to help them cultivate strong customer relationships and reinforce their new brand, VENUE," said Ivan Szeftel, president of Alliance Data Retail Services. "Together, we will drive their sales by providing value to the customer."

PD Financial Corporation, a privately-held information-based direct retailer of brand-name consumer products is "making luxury affordable" by offering consumers financing and low monthly payments through its private label credit card. Headquartered in Los Angeles, PD Financial uses proprietary models and data mining techniques to target consumers through its catalogs and the web. PD Financial offers leading brand-name consumer electronics, computers, home products, fashion accessories, cosmetics, jewelry, home entertainment and other luxury products.

Alliance Data is a leading provider of marketing, loyalty and transaction services, managing over 120 million consumer relationships for some of North America’s most recognizable companies. Using transaction-rich data, Alliance Data creates and manages customized solutions that change consumer behavior and that enable its clients to create and enhance customer loyalty to build stronger, mutually beneficial relationships with their customers. Headquartered in Dallas, Alliance Data employs over 9,000 associates at more than 60 locations worldwide. Alliance Data’s brands include AIR MILES®, North America’s premier coalition loyalty program, and Epsilon®, a leading provider of multi-channel, data-driven technologies and marketing services.