Alliance Data Systems to Acquire Epsilon Data Management for $300 Million

(Dallas, Texas) – Alliance Data Systems (NYSE: ADS), a leading provider of transaction, credit and marketing services, announced on October 12 that it has reached an agreement to acquire Epsilon Data Management, Inc. (Epsilon), a leading provider of integrated direct marketing solutions that combine value-added marketing, transaction, technology and analytical services. Structured as a merger, the transaction — valued at approximately $300 million — is expected to close during the fourth quarter of 2004.

Epsilon will be acquired from Relizon Holdings LLC, a portfolio company of the Carlyle Group.

ADS Vice President and Counsel Jeanette Fitzgerald was assisted in the transaction by Akin Gump Strauss Hauer & Feld.

About Alliance Data Systems

Based in Dallas, Alliance Data Systems Corporation is a leading provider of transaction, credit and marketing services, assisting retail, petroleum, utility and financial services clients in managing the critical interactions between them and their customers. Alliance 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 employs approximately 7,500 associates at more than 30 locations in the United States and Canada.

About Akin Gump

Founded in 1945, Akin Gump Strauss Hauer & Feld LLP, a leading international law firm, numbers more than 900 lawyers with offices in Austin, Brussels, Dallas, Houston, London, Los Angeles, Moscow, New York, Philadelphia, Riverside, Riyadh (affiliate), San Antonio, San Francisco and Washington. The firm has a diversified practice and represents regional, national and international clients in a wide range of areas, including antitrust; appellate; banking and finance; capital markets; communications and information technology; corporate and securities; corporate governance; employee benefits; energy; entertainment and media; environmental; estate planning, wealth transfer and probate; financial restructuring; global security; government contracts; health; insurance; intellectual property; international trade; investment funds; labor and employment; land use; litigation; mergers and acquisitions; private equity; privatization; project development and finance; public law and policy; real estate development and finance; Russia/CIS; tax; and technology.

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