- Charming Shoppes to Become a Top-Ten Alliance Data Client

- Charming Shoppes Reduces Net Debt, Strengthens Liquidity, Eliminates Future Credit Financing Needs

DALLAS, Aug. 13 /PRNewswire-FirstCall/ -- Alliance Data Systems Corporation (NYSE: ADS), a leading provider of loyalty and marketing solutions derived from transaction-rich data, and Charming Shoppes, Inc. (Nasdaq: CHRS), a leading multi-brand apparel retailer specializing in women's plus-size fashions, today announced a long-term agreement where Alliance Data will assume operation of Charming Shoppes' private label credit card programs on an ongoing basis as well as acquire the credit card files and service center operations associated with Charming Shoppes' branded card programs. Alliance Data expects the transaction to close by the end of the year, subject to attaining certain customary regulatory approvals.

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Charming Shoppes operates women's apparel brands including Lane Bryant, Lane Bryant Outlet, Fashion Bug and Catherines Plus Sizes, and posts annual sales of more than $2 billion with 2,258 retail stores nationwide. Lane Bryant is the most recognized name in specialty plus-size clothing with an emphasis on fashion, serving women ranging in age from 35-55; Fashion Bug offers updated fashions with value pricing in plus and misses sizes for women ages 30-50; and Catherines Plus Sizes offers classic and current apparel and accessories for career and casual lifestyles for ages 45+. Charming Shoppes currently operates its private label credit card program in-house.

Alliance Data is a leading provider of transaction-based marketing and loyalty services, with $2 billion in annual sales and approximately 7,000 associates located primarily in the United States and Canada. Alliance Data's marketing and loyalty offerings span three businesses: LoyaltyOne(TM), which includes the Canadian AIR MILES(R) Reward Miles coalition loyalty program; Epsilon, a leading provider of data-driven digital marketing, database and loyalty technology, and data services; and Alliance Data's Retail Services business, which operates approximately 100 private label credit and co-brand programs primarily for leading retailers, providing credit/marketing services, processing and customer care to drive consumer spend.

Alliance Data will provide a comprehensive suite of services geared toward marketing and growing the private label credit card programs for Lane Bryant, Fashion Bug and Catherines. Specific services will include account acquisition and activation; receivables funding; card authorization; private label credit card issuance; statement generation; remittance processing; customer service functions; and marketing services. The credit profile of Charming Shoppes' existing accounts is consistent with Alliance Data's credit quality standards.

Under terms of the agreements, Alliance Data will assume the operation of the Lane Bryant, Fashion Bug and Catherines credit card program, portfolio and securitization master trust, which combined represents 4.5 million active accounts generating $680 million in annual credit sales and $500 million in account receivables.