ALLIANCE DATA SYSTEMS' EPSILON LAUNCHES AND WILL MANAGE COMPREHENSIVE CUSTOMER DATABASE FOR PFIZER

DALLAS, Texas. – June 13, 2005 – Alliance Data Systems Corp. (NYSE: ADS), a leading provider of transaction services, credit services and marketing services, today announced that its Epsilon business unit has completed the build of a comprehensive database system for Pfizer Inc. Also, under terms of a multi-year agreement, Epsilon will manage and host Pfizer's database solution geared toward enhancing Pfizer's overall consumer outreach efforts. Pfizer is the world's largest research-based pharmaceutical firm and an Epsilon top-10 client.

"We are pleased that Pfizer selected Epsilon to build and manage its customer database, and we look forward to a mutually beneficial relationship," said Mike Iaccarino, president, Epsilon. "We are confident in our ability to provide an effective database solution, leveraging our significant expertise, technical know-how and strategic vision to deliver real value to Pfizer."

John Scullion, president of Alliance's Loyalty and Marketing Services group, noted, "As we've previously stated, we believe that Epsilon's capabilities, coupled with those of Alliance's Loyalty and Marketing Services group, provide us with a broader range of business opportunities. These include expanding the verticals for which we provide services, such as pharmaceutical, while combining our expertise to better serve existing clients."

About Epsilon
Epsilon is a leading relationship marketing company that helps clients create measurable business results through integrated marketing services. Epsilon is committed to maximizing the value, growth and loyalty of clients' customer and prospect portfolio through core services including data analysis, multi-channel direct communications and database marketing. Epsilon's services enable clients to build enduring customer relationships by identifying marketing opportunities and creating actionable customer insight. Founded in 1969, Epsilon maintains offices in Boston, Dallas, St. Louis and Washington, D.C.

For more information see www.epsilon.com.

About Alliance Data Systems

Based in Dallas, Alliance Data Systems is a leading provider of transaction services, credit services and marketing services. The company assists retail, petroleum, utility and financial services clients in managing the critical interactions between them and their customers. Alliance Data manages approximately 95 million consumer relationships for some of North America's most recognizable companies and operates and markets the largest coalition loyalty program in Canada. Alliance Data Systems employs approximately 7,500 associates at more than 30 locations in the United States and Canada. For more information about the company, visit its web site, http://www.alliancedatasystems.com.

Alliance Data Systems Safe Harbor Statement/Forward Looking Statements

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

If one or more of these or other risks or uncertainties materialize, or if our underlying assumptions prove to be incorrect, actual results may vary materially from what we projected. Any forward-looking statements contained in this news release reflect our current views with respect to future events and are subject to these and other risks, uncertainties and assumptions relating to our operations, results of operations, growth strategy and liquidity. We have no intention, and disclaim any obligation, to update or revise any forward-looking statements, whether as a result of new information, future results or otherwise.

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