Global Loyalty Marketing Company Unveils as LoyaltyOne

July 10, 2008 11:00 AM EDT

TORONTO, July 10 /PRNewswire/ -- Canada's premier loyalty marketing company, operator of the renowned AIR MILES(R) Reward Program and other loyalty-based marketing services, today outlined its international growth strategy and unveiled a corporate name change to LoyaltyOne.

The newly branded company, formerly known as Alliance Data Loyalty Services, remains a wholly owned subsidiary of Alliance Data Systems Corporation (NYSE: ADS). The new name underscores LoyaltyOne's expansion into the United States and other international markets in response to demand from corporate clients who want new marketing strategies that differentiate themselves from competitors, and who see a different approach, as well as a model for success in the AIR MILES coalition loyalty program.

The evolution of the name to LoyaltyOne culminates five years of internal growth and strategic acquisitions. It reflects the company's commitment to providing a full range of expert loyalty marketing services, including loyalty program design, partnership and coalition development, and other consulting services.

U.S. consumers are familiar with proprietary loyalty marketing programs from individual companies that offer reward points and miles. Fifty-seven percent of Americans participate in such programs. AIR MILES is the world's most successful coalition loyalty program, meaning it offers Canadians the opportunity to earn and redeem rewards from multiple businesses. A remarkable 86% of Canadians participate in loyalty programs.

"We are hearing more talk of coalition loyalty marketing in the U.S. than ever before, and that follows a global trend," said LoyaltyOne President Bryan Pearson. "Wherever the coalition model is dominant, as in Canada, the United Kingdom, Germany, Australia or New Zealand, you see much higher customer participation and engagement. So, it's not just points, promotions and programs in the short term, our strategies drive long-term behavior change."

Spearheading LoyaltyOne's efforts into the United States will be Bruce Kerr, formerly Senior Vice President and Chief Client Officer, Alliance Data Loyalty Services and the AIR MILES Reward Program. Bruce brings over 20 years of executive-level customer management, data analytics and coalition loyalty marketing experience to his new role, with a specific focus on building successful corporate and brand partnerships for bottom-line growth.

Building on the success of 16-year-old AIR MILES, LoyaltyOne has acquired or launched five businesses in the past five years. They include COLLOQUY(R), a leading provider of loyalty marketing publishing, education and research; ICOM Information & Communications, operator of North America's largest consumer response database; Direct Antidote, a loyalty agency specializing in data-driven creative campaigns, and Precima, a recently launched advanced analytics firm that translates retail customer data into critical insights to better align marketing, merchandising and operations strategies with shopper needs.

The latest addition is newly launched LoyaltyOne Consulting, which applies the skills of experts from across the business to help companies assess, design and implement loyalty programs and successful customer strategies.

"Our acquisition and expansion strategy in recent years has aligned a group of top loyalty-related brands that are proving to be stronger and more successful as one than they ever could have been individually," Pearson said. "There is increasing U.S. and international market demand for leading companies that can integrate loyalty solutions and deliver measurable results from a customer management standpoint. Together with our sister company, Epsilon, a recognized leader in marketing services, LoyaltyOne's expansion in this space will further solidify Alliance Data's foothold in this arena. Each company's unique and distinct capabilities and experience complements and supports Alliance Data's mission to drive enterprise level customer management."

To celebrate its new corporate identity, LoyaltyOne is unveiling www.loyalty.com , a web site dedicated to providing original loyalty marketing content, including articles, essays, breaking news, research and information about industry conferences and events.

About LoyaltyOne, Inc.

LoyaltyOne is a global leader in the development and management of loyalty marketing strategies that profitably change customer behavior. Through a team of businesses, each specializing in a distinct loyalty discipline, LoyaltyOne designs, delivers and manages a complete suite of loyalty marketing capabilities. The companies include: LoyaltyOne Consulting, a group of practitioners with more than 25 years of experience designing and implementing customer strategies for Fortune 1000 clients; The AIR MILES(R) Reward Program, North America's premier coalition loyalty program; COLLOQUY(R) and colloquy.com, global provider of loyalty marketing publishing, education and research since 1990; ICOM Information & Communications L.P.; North America's leading supplier of targeted list, data communication solutions; Direct Antidote, a loyalty agency specializing in data-driven creative campaigns designed to deliver measurable results that inspire customer loyalty and return on investment; and Precima, an advanced analytics firm that translates retail customer data into critical insights to better align marketing, merchandising and operations with shopper needs. LoyaltyOne is a wholly owned subsidiary of Alliance Data Systems Corporation (NYSE: ADS). More information is available at www.loyalty.com .

Alliance Data's Safe Harbor Statement/Forward Looking Statements

This 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 presentation 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. These risks, uncertainties and assumptions include those made with respect to and any developments related to the termination of the proposed merger with an affiliate of The Blackstone Group, including risks and uncertainties arising from actions that the parties to the merger agreement or third parties may take in connection therewith. 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.

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Statements in this presentation regarding Alliance Data Systems Corporation's business which are not historical facts are "forward-looking statements" that involve risks and uncertainties. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see "Risk Factors" in the Company's Annual Report on Form 10-K for the most recently ended fiscal year. Risk factors may be updated in Item 1A in each of the Company's Quarterly Reports on Form 10-Q for each quarterly period subsequent to the Company's most recent Form 10-K.

Contact: Jill McBride, jill@jzmcbride.com, or Tim Sansbury tim@jzmcbride.com, 513-231-5115

SOURCE LoyaltyOne

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