Alliance Data Reports a 4.3% Delinquency Rate For September

Alliance Data Systems Corporation

, a leading provider of data-driven and transaction-based marketing and customer loyalty solutions, today provided an update on its Private Label segment. In conjunction with the release of the Company's Master Trust Monthly Noteholder's Statement, the Company is releasing similar metrics for the overall total managed portfolio. The Master Trust data represents a subset of the Company's total managed portfolio, and the Company believes the information presented below provides a more complete view of the Private Label segment. For the one For the three month ended months ended September 30, 2012 September 30, 2012 (dollars in thousands) Average receivables $ 6,380,826 $ 6,121,431 Year over year change in average 31% 26% receivables Net charge-offs $ 22,423 $ 65,221 Net charge-offs as a percentage of 4.2% 4.3% average receivables^(1) Pro forma net charge-offs as a percentage of average 4.6% 4.5%    receivables^(2)   As of As of September 30, 2012 September 30, 2011 (dollars in thousands) 30 days + delinquencies - principal $     260,190 $     233,008 Period ended receivables - principal $  6,120,544 $  4,741,569 Delinquency rate 4.3% 4.9% __________________________________ ^(1) The net charge-off rate was 5.9% and 6.0% for the one month and three months ended September 30, 2011, respectively. ^(2) The Company acquired the credit card receivables of Bon Ton, Inc. and Talbots, Inc. on July 24, 2012 and August 3, 2012 respectively. Included in the pro forma net charge-off rate are those losses associated with the purchased credit card receivables. Under generally accepted accounting principles, such losses are reflected in the fair value of the purchased credit card receivables and not reported as net charge-offs. The Company believes that it is meaningful to investors to see the net charge-off rate that includes losses on these acquired credit card receivables as it is more indicative of a normalized loss rate.