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Alliance Data Systems To Provide Integrated Private Label And Co-Brand Credit Card Services To Home Furnishings Retailer Hanover Direct

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Alliance Data Systems Corp., a leading provider of transaction services, credit services and marketing services, announced that it has signed a seven-year agreement with Hanover Direct, Inc., a leading catalog and Web retailer of home furnishings and accessories, and men's and women's apparel. Under terms of the agreement, Alliance Data will provide a fully integrated private label credit card and co-brand bankcard solution for Hanover Direct's catalog and corollary Web brands, including The Company Store, Domestications, Silhouettes, International Male and Undergear. With sales in excess of $400 million, Hanover mails more than 165 million catalogs annually, offering merchandise ranging from upscale home furnishings, bed linens, and decorations, to men's and women's apparel including contemporary, casual and trend-conscious fashions. The services that Alliance Data will provide Hanover Direct include account acquisition and activation, receivables funding, card authorization, card issuance, statement generation, loyalty marketing services, remittance processing, and customer service functions. Alliance Data will initially launch a private label credit card program for the Hanover brands and will later introduce an integrated co-brand credit card program that will be an adjunct to Alliance Data's traditional private label credit card offering. The co-brand credit card will be targeted to select consumers that meet Alliance Data's traditional credit quality standards. The card will offer a loyalty rewards program that recognizes customers for their purchases, including purchases made on the co-brand credit card outside the Hanover brands. Mike Contino, executive vice president and chief operating officer for Hanover Direct, Inc., said, "Alliance Data Systems demonstrated considerable insight in proposing this integrated credit card program. It offers a single holistic approach geared toward expanding customer participation in our loyalty marketing programs, which was very appealing to us. Additionally, this solution offers complete and complementary card programs that we believe will help attract a broader circle of consumers while also recognizing and rewarding our best customers. Alliance Data has the retail experience, multi-channel expertise and the integrated solution that we were seeking to help grow our business and give us a competitive advantage." "We are very pleased that Hanover Direct selected us to provide their credit card program needs and are looking forward to building a strong business partnership," said Ivan Szeftel, president of Retail Services, Alliance Data Systems. "In the short time we've worked with them, we were quickly impressed by Hanover Direct's commitment to growing their business through a customer-focused approach geared toward strengthening the relationship between their customers and their brands. We also view our relationship with Hanover Direct as one that fits squarely within our client profile in terms of credit quality, product mix and distribution channels. Finally, this agreement speaks to Alliance Data's strategic vision for building upon our core private label credit card product to offer an integrated suite of card services that drives our clients' sales, reinforces the retailer's brand, and offers an effective means of increasing customer loyalty." 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 . About Hanover Direct, Inc. Hanover Direct, Inc. (PINK SHEETS: HNVD) and its business units provide quality, branded merchandise through a portfolio of catalogs and e-commerce platforms to consumers, as well as a comprehensive range of Internet, e-commerce, and fulfillment services to businesses. The Company's catalog and Internet portfolio of home fashions, apparel and gift brands include Domestications, The Company Store, Company Kids, Silhouettes, International Male, Undergear and Scandia Down. Each brand can be accessed on the Internet individually by name. Keystone Internet Services, LLC (www.keystoneinternet.com ), the Company's third party fulfillment operation, also provides the logistical, IT and fulfillment needs of the Company's catalogs and web sites. Information on Hanover Direct, including each of its subsidiaries, can be accessed on the Internet at www.hanoverdirect.com .

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