Epsilon and Frequency Marketing Inc. (FMI) Join Forces to Strengthen Loyalty and Marketing Services Offering

WAKEFIELD, MASS. – November 10, 2005 – Epsilon, a leading provider of multi-channel marketing services, technologies and database solutions, today announced that Frequency Marketing, Inc. (FMI) will be integrated into Epsilon to further strengthen Epsilon's comprehensive marketing services and loyalty offerings. FMI is a leading provider of marketing services and technology solutions for the design, implementation and management of loyalty marketing programs. Current clients include Verizon, Best Buy and LaQuinta.

The integration comes following Epsilon's recent acquisition of Bigfoot Interactive (now Epsilon Interactive), and further strengthens and expands Epsilon's offering and leadership positioning in the marketing services and loyalty sectors. With the continued build-out of its portfolio, Epsilon is able to provide leading brands access to the most robust multi-channel marketing services, technologies and database solutions available in the marketplace today.

"Our expanded offering gives marketers access to best-of-breed solutions focused around key customer and marketing optimization initiatives," said Mike Iaccarino, president and chief executive officer of Epsilon. "The synergistic combination of FMI and Epsilon will enhance both organizations' ability to help companies create more loyal and profitable relationships with their customers."

For two decades, FMI has provided loyalty marketing solutions that recognize and reward customers based on their purchase behavior. The merger will extend FMI's offering further with additional analytics and customer communications capabilities while continuing the investment in its leading loyalty and reward products and services.

FMI management will report to Epsilon COO Bryan Kennedy. COLLOQUY® (www.colloquy.com) will remain an independent entity continuing to provide publishing, consulting, research and educational services to the global loyalty marketing community.

Epsilon and COLLOQUY are owned by Alliance Data, a leading provider of transaction services, credit services and marketing services based in Dallas.

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 and marketing ROI. 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. Epsilon is an Alliance Data company.

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 maintains principal offices in Boston, Dallas, New York, St. Louis and Washington, D.C.

For more information see www.epsilon.com.

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