Independent Research Firm Cites Epsilon as a Database Marketing Service Provider Leader

According to Findings "Epsilon Sets the Bar for the Industry"

WAKEFIELD, MASS. – January 11, 2006 – Epsilon, a leading provider of multi-channel marketing services, technologies and database solutions, today announced it has been cited as a "leader" in Forrester Wave: Database Marketing Service Providers, Q1 2006, an evaluation of top database marketing service providers across 125 criteria. According to the report, Epsilon ranked number one in the current offering and strategy categories with the report noting "Epsilon sets the standard for database marketing service providers." The ranking also follows Forrester's recent citing of Epsilon Interactive as a market leader in the Forrester Wave: Email Marketing Service Providers Q4 2005, giving Epsilon the distinction of having a leading offering in both the database and email marketing industries.

The report, The Forrester Wave^TM: Database Marketing Service Providers, Q1 2006, was published on Tuesday, January 10, 2006. To begin its research, Forrester assembled a list of over 100 companies that provide outsourced database marketing services and then selected 10 to evaluate in depth based on market share, number and quality of customer references, and the balance of acquisition versus retention, among other criteria.

The report recognized Epsilon as "squarely in the sweet spot of market demand" and touts the company for its comprehensive offering and exceptional service citing "Epsilon provides a well balanced blend of technical, analytical and marketing capabilities that is both wide and deep. Just as importantly, clients give it top-notch satisfaction ratings, a sure sign of consistent delivery." The continued growth, expansion and momentum generated by Epsilon's acquisition by Alliance Data in October of 2004 and its recent purchase of Bigfoot Interactive (now Epsilon Interactive) is also noted. "The company's acquisition of Bigfoot Interactive adds email and online marketing technology to a toolbox that already contains acquisition marketing, loyalty management, and state-of-the-art data processing software." The scorecard summary continues with Forrester citing, "Today, it commands an impressive portfolio of technology assets and lots of experience with third party marketing and analytics software. Epsilon is well positioned to extend its leadership in the database marketing service industry and its track record of growth and customer satisfaction – as well as its high-level alignment with parent organization ADS – lends its plan credibility."

"We are extremely proud of our people who have collectively built and assembled a leading product and service offering that addresses the growing market demand for integrated marketing services that span strategy, database management, analytics and multi-channel execution." said Mike Iaccarino, president and CEO of Epsilon. "Our strategic vision is shaped by our desire to meet and exceed our client's needs and expectations through the delivery of exceptional service and expertise as well as best-of-breed data and platform agnostic solutions that help marketers optimize their customer relationships and marketing ROI. This recognition only further strengthens our commitment to continually set the standard for excellence within the industry."

The Forrester Research methodology included a combination of lab evaluations, questionnaires, demos, and/or discussions with client references. To best evaluate the selected database marketing service providers, Forrester examined past research, user needs assessment and provider and expert interviews against 125 criteria. Scorecards for each firm were completed and the final results for each are detailed in the report. Copies of the full report are available to subscribers of Forrester Research at www.forrester.com.

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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