Global Loyalty Marketing Company Unveils as LoyaltyOne



    
    New Corporate Identity Reflects Evolution to Worldwide Provider of Loyalty
    Services

    LoyaltyOne to Target International Marketplace Opportunities

    
    TORONTO, July 10 /CNW/ -- 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




For further information:

For further information: Jill McBride, jill@jzmcbride.com, or Tim
Sansbury, tim@jzmcbride.com, both for LoyaltyOne, +1-513-231-5115 Web Site:
http://www.loyalty.com                 http://colloquy.com

Organization Profile

LoyaltyOne

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ALLIANCE DATA LOYALTY SERVICES

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