ALLIANCE DATA SYSTEMS ANNOUNCES AGREEMENT WITH TRUGREEN CHEMLAWN

Alliance Data's Epsilon Data Management, Inc. to Manage Direct Marketing for the World Leader in Lawn Care

DALLAS, Texas, March 3, 2005 - Alliance Data Systems Corp. (NYSE: ADS), a leading provider of transaction services, credit services and marketing services, today announced that Epsilon Data Management, Inc. (Epsilon), has been selected to provide marketing services for TruGreen ChemLawn, the world's largest lawn care services company. TruGreen is a subsidiary of ServiceMaster, a $3.6 billion provider of outsourcing services to more than 10.5 million residential and commercial customers in the United States.

Under terms of the agreement, Epsilon will implement TruGreen ChemLawn's new-customer direct marketing strategy for 2005. Specifically, Epsilon will provide TruGreen ChemLawn with a comprehensive set of direct marketing services, including statistical test design and results analysis, package production and logistics services, and a web-based mail tracking system for TruGreen ChemLawn's lead generation program. These services are designed to aid TruGreen in the acquisition of new customers in 2005.

"After a careful search, we selected Epsilon because they share the same strategic vision we have at TruGreen ChemLawn and ServiceMaster. Specifically, more precise understanding of consumer behavior and brand positioning will provide a strong foundation for our customer acquisition processes," said Vic Yeandel, chief marketing officer for the TruGreen Companies. "Additionally, Epsilon provides proven expertise, volume capacity and ability to successfully meet our aggressive schedule for targeting prospective customers."

"This agreement adds to Epsilon's stellar list of clients," said John Scullion, president of Alliance Data's Marketing Services Group. "As we previously stated, we think that combining Epsilon's capabilities with those of Alliance Data's Marketing and Loyalty Services Group provides us with a unique ability to create a new range of product and service opportunities that can benefit new and existing clients."

Mike Iaccarino, Epsilon's president and chief executive officer, said, "It is the combination of strategic database marketing services and high-quality, high-capacity direct mail services that we are finding to be of real value to great companies like TruGreen ChemLawn. We're pleased to have been selected by TruGreen ChemLawn and we look forward to building a long-term, mutually beneficial relationship."

About Epsilon
Epsilon, which became a wholly owned subsidiary of Alliance Data Systems in 2004, 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 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. Alliance Data Systems purchased Epsilon in 2004.

For more about Epsilon, see http://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.

About TruGreen ChemLawn
TruGreen is the world's largest lawn and landscape company that now serves more than 2.5 million residential and commercial customers across the United States with lawn care, tree and shrub care, and landscaping services. The company's brands include TruGreen ChemLawn and TruGreen LandCare.

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.

CONTACT:
Ed Heffernan - CFO
Analysts-Investors
972-348-5191
eheff@alldata.net

Shelley E. Whiddon - Media
972-348-4310
swhiddon@alldata.net
Both of Alliance Data Systems

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