Note: The information contained in this report (including Exhibit 99.1) shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as expressly set forth by specific reference in such a filing.

DALLAS, June 13, 2008 - Alliance Data Systems Corporation (NYSE: ADS), a leading provider of loyalty and marketing solutions derived from transaction-rich data, today announced that on May 21, 2008, it had entered into a Stipulation of Settlement to settle claims filed subsequent to its May 17, 2007, announcement that it had entered into an Agreement and Plan of Merger to be acquired by Blackstone Capital Partners V L.P., an affiliate of The Blackstone Group. Those cases were consolidated and are now captioned as In re Alliance Data Corp. Class Action & Derivative Litigation, Case No. 07-4689, 68^th Judicial District Court of Dallas County, Texas (the "Class Action"). On May 22, 2008, the Court overseeing those claims preliminarily approved the class action settlement. The Settlement Class covered by the Stipulation of Settlement includes: all persons or entities who were record or beneficial holders of ADSC common stock at any time during the period from (and including) May 17, 2007 through August 14, 2007, including the legal representatives, heirs, successors in interest, transferees, and assigns of all such foregoing holders and/or owners. Excluded from the Settlement Class are The Blackstone Group and its affiliates, ADSC's board members, and certain persons related to them.

Pursuant to an Order of the 68^th Judicial District Court of Dallas County, Texas a hearing will be held on July 28, 2008 at 9:00 a.m. regarding the proposed settlement (the "Settlement"). The hearing on whether to approve the Settlement in the Class Action will be held before the Honorable Martin Hoffman, District Judge, at the George L. Allen, Sr. Courts Building, 5^th Floor New Tower, 600 Commerce, Dallas, Texas 75202. The purpose of the Settlement of the Class Action is to settle the claims asserted on behalf of the Settlement Class against Alliance Data Systems Corporation, J. Michael Parks, Bruce K. Anderson, Roger H. Ballou, Lawrence M. Benveniste, D. Keith Cobb, E. Linn Draper, Jr., Kenneth R. Jensen, and Robert A. Minicucci (collectively, the "Defendants") in exchange for additional disclosures provided to ADSC stockholders in a Supplemental Proxy Statement filed with the Securities and Exchange Commission on July 30, 2007 and the payment of reasona ble attorney's fees and expenses to Class Plaintiffs' Counsel in the amount of $380,000.00. At this hearing, the Court will determine: (1) whether the terms of the Settlement described in the Stipulation of Settlement ("Stipulation") dated May 21, 2008 and filed with the Court should be approved as fair, just, reasonable, and adequate; and (2) whether the Class Action should be dismissed with prejudice as set forth in the Stipulation. The Court may adjourn or continue the hearing on the Settlement of the Class Action without further notice to the Settlement Class.

If you are a member of the Settlement Class described above, your rights will be affected. If you are a Settlement Class member and have not yet received the full printed Notice of Proposed Settlement of Class Action ("Notice"), you may obtain copies by calling or writing to the notice administrator at Alliance Data Systems Litigation c/o Berdon Claims Administration LLC, P.O. Box 9014, Jericho, New York 11753-8914, (800)766-3330. You may also download and print the Notice from www.berdonclaims.com. If you were a nominee who held ADSC common stock for any beneficial owner at any time during the period from and including May 17, 2007 through and including August 14, 2007, please consult the Notice for instructions on how notice is to be provided to beneficial owners. For information other than to obtain copies of the Notice, you may contact Counsel for Class Plaintiffs and the Settlement Class: Jacob A. Goldberg, Faruqi & Faruqi LLP, 2600 Philmont Avenue, Suite 324, Huntin gdon Valley, PA 19006, (215) 914-2460.

If you are a Settlement Class member and do not exclude yourself from the Settlement Class, you will be bound by the Final Order and Judgment of the Court. To exclude yourself from the Settlement Class, you must submit a request for exclusion postmarked no later than July 14, 2008, in the manner set forth in the Notice. If you are a Settlement Class member who wishes to object to the Settlement of the Class Action, please refer to the Notice, which provides instructions on how to do so. Please do not contact the Court for information.