CONTACT INFORMATION

Alliance Data Systems
www.alliancedatasystems.com

Analysts\Investors: Ed Heffernan
eheff@alldata.net

Media: Shelley E. Whiddon
swhiddon@alldata.net

DALLAS, TX, November 22, 2004 – Alliance Data Systems' Utility Services Division, a leading provider of business process outsourcing for regulated and deregulated utilities, today announced that it has acquired Capstone Consulting Partners, Inc., a provider of management consulting and technical services to the energy industry. Capstone brings tenured consultants with a recognized level of in-depth utility expertise. Alliance Data will utilize this expertise to provide clients additional value around systems implementation and business transformation initiatives.

The acquisition of Capstone will enable Alliance Data to expand its capabilities for utility clients beyond billing and customer care to services within the field service, construction/ maintenance, and administrative departments of utilities. These areas typically encompass critical systems such as automated dispatch and mobile data systems, work management, and enterprise resource planning (ERP) systems.

“Utilities today are entertaining an array of options for provisioning services and systems,” said Kurt Zuch, Managing Partner of Capstone. “At Capstone, we built our business around helping companies navigate these complex challenges. We are delighted to be joining Alliance Data, a company with a strong history of providing innovative solutions to utilities and many other industries.”

Mike Beltz, president of Utility Services at Alliance Data Systems, said: “The acquisition of Capstone enhances our utility industry service offerings. Capstone’s business consulting and implementation expertise, combined with Alliance Data’s demonstrated operational strength will provide our clients and prospects added value and a more robust set of business process outsourcing services.”

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, 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.

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