Released By Alliance Data Systems News Release
Sept. 10, 2002

ALLIANCE DATA SYSTEMS GAINS FOOTHOLD IN CANADIAN UTILITY MARKET

Acquisition from Duke Energy allows Alliance Data to leverage its energy industry offerings and expertise outside U.S.

 

DALLAS, Texas -- Alliance Data Systems Corp. (NYSE: ADS), a leading provider of transaction services, marketing services and credit services, today announced the acquisition of Enlogix Group from Duke Energy for an undisclosed amount.  With the acquisition of Enlogix, Alliance Data will begin providing customer information system (CIS) hosting for five utility companies, including Union Gas and Pacific Northern Gas, both subsidiaries of Duke Energy.

 

This arrangement provides a foray for Alliance Data into the Canadian utility market, and offers the opportunity for Alliance Data to provide additional outsourced services, such as customer care, to other North American utility companies. 

 

Alliance Data currently works with a variety of regulated and deregulated energy companies in the United States, providing billing, customer care and targeted marketing programs geared to assist clients as they operate in an increasingly competitive and rapidly changing energy marketplace.

 

Alliance Data expects this relationship will add revenue of at least US$10 million annually from the existing core client base and is expected to be neutral to earnings its first year and accretive thereafter.

 

“We view this relationship with Duke Energy as a great opportunity to partner with an industry leader,” said Mike Beltz, president of Alliance Data’s Transactions Services group. “This deal reinforces the success we’ve had in the utility marketplace, and by adding to our capabilities, reaffirms our position as a leader in outsourcing for the utility industry.”

 

Duke Energy acquired Enlogix – a provider of billing and customer information services – as well as Union Gas and a 41-percent interest in Pacific Northern Gas in March 2002 as part of the Westcoast Energy transaction.

 

About AllianceData Systems

Based in Dallas, Alliance Data Systems (NYSE: ADS) is a leading provider of transaction services, credit services and marketing services, assisting retail, petroleum, utility and financial services companies in managing the critical interactions between them and their customers. Alliance Data each year manages over 2.5 billion transactions and 72 million consumer accounts for some of North America's most recognizable companies. The Company also operates and markets the largest coalition loyalty program in Canada. Alliance Data Systems employs approximately 6,500 associates at more than 20 locations in the United States, Canada and New Zealand. For more information about the company, visit its web site, www.alliancedatasystems.com. 

 

About Duke Energy

Duke Energy is a diversified multinational energy company with an integrated network of energy assets and expertise. The company manages a dynamic portfolio of natural gas and electric supply, delivery and trading businesses – meeting the energy needs of customers throughout North America and in key markets around the world. Duke Energy, headquartered in Charlotte, N.C., is a Fortune 100 company traded on the New York Stock Exchange under the symbol DUK. More information about the company is available on the Internet at: www.duke-energy.com.

 

AllianceData Systems’ SafeHarborStatement/Forward Looking Statements


Statements contained in this press release that are not historical facts may be forward-looking statements within the meaning of the Private Litigation Reform Act.  Such statements may use words such as “anticipate,” “believe,” “estimate,” “expect,” “intend,” “predict,” “project” and similar expressions as they relate to Alliance Data Systems 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 the risks discussed in our filings with the Securities and Exchange Commission.  If one or more of these risks 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 press release 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.  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.

 

 

Contact: Shelley E. Whiddon -- Alliance Data Systems, Media
Phone: 972/348-4310
24 Hour Phone: n/a
Email: swhiddon@alldata.net
Contact: Ed Heffernan -- Alliance Data Systems, Analysts/Investors
Phone: 972/348-5196
24 Hour Phone: n/a
Email: eheff@alldata.net
Contact: Sara McIntosh -- Duke Energy, Media
Phone: 604/488-8095
24 Hour Phone: 704/382-8333
Email: smcintosh@duke-energy.com