Program to Help Catalog and Web Retailers Improve Incremental Sales and Customer Loyalty

DALLAS, Aug. 27 /PRNewswire-FirstCall/ -- Alliance Data Systems Corporation (NYSE: ADS), a leading provider of loyalty and marketing solutions derived from transaction-rich data, today announced it has signed a new long- term agreement with Orchard Brands, a portfolio company of Golden Gate Capital, to provide fully integrated private label credit services for specialty catalog brands, Old Pueblo Traders, Bedford Fair, Willow Ridge, Lew Magram, Brownstone Studio, Intimate Appeal, Monterey Bay Clothing Company and Coward Shoes. According to public documents filed by Charming Shoppes, the women's apparel specialty catalogs generated approximately $280 million in sales in 2007.

Orchard Brands, a leading, multi-channel marketer of apparel and home products with more than $1 billion in revenues, focuses on the rapidly growing segment of women and men over fifty-five. Orchard Brands also owns Blair Corporation, a top-ten private label credit program client of Alliance Data.

Under terms of the agreement, Alliance Data will provide a full suite of integrated credit services for both the catalog and online channels, including account acquisition and activation, receivables funding, card authorization, card issuance, statement generation, marketing services, remittance processing, and customer service functions.

Today's announcement is in conjunction with an earlier announcement made Monday August 25, 2008 by Charming Shoppes that they had entered an agreement for the sale of these specialty catalogs to Orchard Brands and an agreement for the sale of certain related credit card receivables to Alliance Data. Under the agreement with Charming Shoppes, Alliance Data will purchase the private label portfolio at par for approximately $40 million.