Alliance Data Systems Signs Long-Term Agreement With American TV and Appliance as First Commercial Card Client

Alliance Data Systems Signs Long-Term Agreement With American TV
and Appliance as First Commercial Card Client 


DALLAS, Aug. 24  /PRNewswire-FirstCall/ -- Alliance Data Systems Corp., a
leading provider of transaction services, credit services and marketing
services, today announced that it has signed a five-year agreement with
American TV and Appliance of Madison, Inc. to provide a comprehensive business
credit card program for American TV's commercial customers.  American TV is a
$370 million upper mid-west consumer electronics, appliance and furniture
retailer with locations in Wisconsin, Illinois, Iowa and Michigan. Alliance
Data has been working with American TV since 2000, providing private label
credit card services for the retailer's consumer base.

Under terms of this new agreement, Alliance Data will provide American TV with
a full-service commercial credit card program including account acquisition and
activation, receivables funding, card authorization, card issuance, statement
generation, marketing services, remittance processing, and customer service
functions.  The card program will be targeted to American TV's commercial
customers -- primarily building contractors -- with prime credit histories.

"American TV is excited about this new commercial credit program as it will
allow us to more effectively focus our resources on managing our core retail
business while leveraging Alliance Data's extensive retail and credit expertise
to deliver a flexible credit card offering for our commercial customers," said
Steve Mixtacki, chief financial officer, American TV and Appliance.

"This new card product will serve as a new vehicle for Alliance Data's future
growth," said Ivan Szeftel, president, Retail Credit Services, Alliance Data
Systems.  "The introduction of this commercial credit card offering is part of
Alliance Data's strategic vision for building upon our core private label
credit product to offer an integrated suite of card services while also
expanding our touch points," he said.  "We are pleased to further enhance our
existing relationship with American TV by adding this commercial credit card to
their current credit program.  Our retail heritage along with our extensive
experience in delivering innovative credit and marketing programs will help
American TV grow their commercial customer business, and strengthen their
customer relationships."

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 American TV and Appliance of Madison, Inc.

Founded in 1954 and headquartered in Madison, WI, American is a leading
retailer of furniture, electronics and appliances with full service, delivery
and installation capabilities.  The typical American store offers customers
over 85,000 square feet of retail showroom.  With eleven stores in four states,
this fall American will expand into the St. Louis market with three new stores,
and has plans to add a fourth store in the market in 2005.  For more
information about the company, visit its web site, http://www.americantv.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:  Analysts and Investors, Ed Heffernan - CFO, [phone],

, or Media, Shelley E. Whiddon, [phone],

, both of Alliance Data Systems



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

http://www.americantv.com/ 

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