Alliance Data Systems Signs Five-Year Agreement With Direct Energy to Provide Customer Information System Services and Customer

Alliance Data Systems Signs Five-Year Agreement With Direct
Energy to Provide Customer Information System Services and Customer Care
* Five-Year Agreement Provides Additional Momentum For Alliance's Utility
Industry Growth Engine




DALLAS, Nov. 15  /PRNewswire-FirstCall/ -- Alliance Data Systems Corp., a
leading provider of transaction services, credit services and marketing
services, today announced that it has renewed and expanded its agreement with
Direct Energy, North America's largest non-utility retail energy provider.

As a result of this transaction, Alliance will continue to provide
comprehensive BPO (Business Process Outsourcing) services including CIS hosting
and managed services, customer care, statement generation, remittance
processing, bill presentment and collections for Direct Energy in Texas, and
will now also be responsible for supporting Direct Energy's residential and
small business customers located primarily in the Dallas and Houston markets.
The new agreement makes Direct Energy the largest retail deregulated customer
for Alliance's Utility division.

In addition, Alliance Data is in a position to support Direct Energy's
initiative to cross-sell additional home services (HVAC and plumbing services)
to its existing and future energy customers.

To optimize scale and efficiency, Direct Energy's CIS accounts will be
consolidated on a common platform by late 2005. Direct Energy's customer care
center operations for Texas will be located in Alliance Data's facility in
Dallas.

"This extension and expansion is a direct result of the partnership we have
with Alliance Data," said Phil Tonge, president of Direct Energy's Texas
operations. "Alliance Data understands the complexities of the utility industry
and is actively finding ways to help us provide a higher quality,
differentiated service to residential and business customers alike."

"We are delighted to extend and expand our relationship with Direct Energy,"
said Mike Beltz, president, Utilities Services, Alliance Data Systems.  "We are
not only proud of Direct Energy's decision to renew our agreement for existing
services, but also of the confidence they've shown in us to entrust their Texas
customers to Alliance.  With this expanded account base and consolidated
platform, we are now poised to assist Direct Energy as it grows and provides a
wide range of services for its customers."

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. 

DATASOURCE: Alliance Data Systems Corp.



CONTACT:  Investors, Ed Heffernan, CFO, [phone],

, Media, Tony Good, [phone], , both

of Alliance Data Systems; or Cynthia Cordova-Media of Direct Energy,

[phone], 



Web site:  http://www.alliancedatasystems.com/ 

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