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DALLAS, TX, December 4, 2003 - Alliance Data Systems Corp. (NYSE: ADS), a leading provider of transaction services, credit services and marketing services, today announced that it has acquired Orcom, a premier provider of customer care and billing services to electric, gas, water, and waste water utilities in North America. Orcom has operations in Colorado, Nebraska, Oregon and Pennsylvania, with approximately 400 employees serving a number of utility clients, and generating more than 1 million statements per month. Orcom is expected to generate core revenues of at least $30 million per year.

The first phase of Alliances business strategy for the utility market targeted investor-owned utilities as well as deregulated utilities in North Americas transitioning and deregulated markets. More recently, Alliance began an expansion into the large municipal utility market. With todays announcement, Alliance has further extended its targeted market to include municipal utilities with 50,000 accounts or greater. Orcoms billing and customer care solution, which has demonstrated proven success in the municipal market for electric, gas and water utilities, will build upon Alliances offering.

Mike Beltz, president, Utility Services, Alliance Data Systems, said, Alliance has consistently demonstrated its ability to successfully serve deregulated utilities, large investor-owned and municipal utilities, as well as mid-market accounts and the sub-metering market. This acquisition continues to broaden our utility product offering and extends our reach in the municipal market, which we view in particular as a prime opportunity for providing outsourced billing and customer care solutions.

The purchase price roughly corresponded to annual revenue, and the acquisition is expected to be neutral to Alliances earnings in the first year and accretive thereafter.

About Alliance Data Systems
Based in Dallas, Alliance Data Systems (NYSE: ADS) 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 over 72 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 7,000 associates at more than 20 locations in the United States and Canada. For more information about the company, visit its web site, www.alliancedatasystems.com.

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Statements contained in this press release that are not historical facts may be forward-looking statements within the meaning of the Private Litigation Reform Act. Such statements may use words such as anticipate, believe, estimate, expect, intend, predict, project and similar expressions as they relate to Alliance Data Systems or our management. When we make forward-looking statements, we are basing them on our managements 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 the risks discussed in our filings with the Securities and Exchange Commission. If one or more of these risks 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 press 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.