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Epsilon Interactive Statement: Federal Trade Commission's CAN-SPAM Act Effectiveness Report

NEW YORK - December 20, 2005 - The Federal Trade Commission (FTC) today issued its report to Congress on the effectiveness of the CAN-SPAM Act, highlighting significant gains in the battle against spam since its enactment two years ago. Epsilon Interactive, a leading provider of strategic, ROI-focused email communications solutions and marketing automation technologies, commended the FTC for its thorough examination, its report, and its ongoing efforts to promote a safer and more reliable email environment.

"The email environment has undeniably improved since Congress last deliberated on the spam problem, and we are optimistic that today's report will help avert potentially burdensome future legislation," said Al DiGuido, President & CEO, Epsilon Interactive. "Over the last year, several leading ISPs and consumers themselves have reported a decline in spam - and things are only getting better."

Epsilon Interactive said it is currently reviewing the specifics of the report, but is pleased that the FTC illustrated a record of progress. Epsilon's CMO, Michael Della Penna, and Epsilon Interactive's Director of ISP and Government Relations, Jordan Cohen, were among a small group of industry experts interviewed by the FTC as part of its fact-finding for the report.

"We have always believed that enforcement of the law would prove helpful in reducing spam as part of a multi-pronged approach that also includes self-regulation and technology," said DiGuido. "We applaud the FTC's ongoing efforts to fight spam on many different fronts, which have undoubtedly helped to put a dent in the problem. However, we urge Congress to further empower the FTC by enacting the US SAFE WEB Act, which will bolster the FTC's ability to trace the many spammers who operate outside of the United States."

In addition to enforcement of the Act, Epsilon Interactive notes that the FTC has been working aggressively to encourage the development of email authentication standards in the marketplace, and has also led important worldwide educational initiatives such as "Operation Spam Zombies."

Through its involvement in the Direct Marketing Association (DMA) and the Messaging Anti-Abuse Working Group (MAAWG), Epsilon Interactive remains active in the development of new technologies and best practices that distinguish legitimate email from spam. Epsilon Interactive has educated thousands of marketers on the importance of email marketing best practices - in 2005 alone, Epsilon Interactive spearheaded the industry's first Email Authentication Implementation Summit, created the EmailAuthentication.org web site, led the DMA's recent virtual seminar on Email Authentication with Microsoft and America Online, and published authoritative white papers on Email Delivery Best Practices and Authentication/Accreditation/Reputation solutions.

"Epsilon Interactive will continue to work with government officials and industry leaders to further distinguish legitimate email and improve the reliability and deliverability of these communications," said DiGuido. "Together, we will ensure that spam continues to decline while legitimate email continues to assert itself as an essential and growing component of the marketing mix.

About Epsilon
Epsilon is a leading provider of multi-channel marketing services, technologies and database solutions. Through its combination of client-centric marketing solutions, Epsilon helps leading companies understand, measure, manage and optimize their customer relationships. The organization's end-to-end suite of integrated services includes marketing strategy, creative, data, technology, analytics and distribution services to produce multi-channel marketing programs that generate measurable results throughout the customer lifecycle.

In September 2005 Epsilon acquired Bigfoot Interactive (now Epsilon Interactive), the leading provider of strategic, ROI-focused email communications solutions and marketing automation technologies. Epsilon Interactive now serves as Epsilon's key offering in the interactive marketing and communications space. Founded in 1969 Epsilon is an Alliance Data company.

For more information see www.epsilon.com.

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Epsilon
Epsilon International is the international arm of Epsilon, a leading provider of multi-channel, data-driven technologies and marketing services.

Alliance Data
Epsilon is a subsidiary of Alliance Data. Alliance Data is a leading provider of transaction services, credit services and marketing services, managing over 105 million consumer relationships for some of North America's most recognizable companies.