Alliance Data Systems launched in merger.

DALLAS--(BUSINESS WIRE)--Dec. 2, 1996--Alliance Data Systems Corporation was officially launched Monday following the merger of Business Services Holdings Inc., the parent corporation of BSI Business Services Inc., an electronic network transaction processing and credit services company, and World Financial Network Holding Corporation (WFN), the parent corporation of World Financial Network National Bank, the private label credit card issuer and processor for The Limited. The merger is a joint venture between Welsh, Carson, Anderson & Stowe (WCAS), a New York investment firm, and The Limited, Inc. (NYSE:LTD). The merger will position Alliance Data Systems as the second largest third-party private label processing operator in the United States.

In January 1996, WCAS acquired BSI from the J.C. Penney Company, Inc., and entered into a joint venture with The Limited, Inc. to acquire 60 percent ownership of the parent corporation of WFN, the wholly owned credit card bank of The Limited. With the merger of the parent corporations of the processing company and the bank, WCAS will retain a 60-percent ownership position of Alliance Data Systems, while The Limited will own 40 percent of the company.

Ralph Spurgin, president and chief executive officer of BSI and WFN, will become president of Alliance Data Systems. Dan Groomes, chief financial officer of WFN, will become chief financial officer, and Jeff Michel, chief information officer of BSI, will become chief information officer of Alliance Data Systems.

"The formation of Alliance Data Systems will enable the company to expand the services offered by BSI and WFN, by applying shared technologies and systems that will be instrumental to the growth of Alliance Data Systems," said Spurgin. "With the combined strengths of BSI's client partnership expertise and WFN's retail credit expertise, Alliance Data Systems will be well positioned to seek growth opportunities in new industries such as health care and utilities. We're confident that this merger will benefit our customers, and create a world-class processing company."

Alliance Data Systems is a transaction processing and information services company that offers private label processing, network services, subscriber services, database marketing services, merchant banking, and credit card marketing to clients in the retail, petroleum, casual dining and direct-to-home satellite programming industries. In addition, Alliance Data Systems will continue to process the credit card portfolios of the various Limited divisions. With its newly combined operations, Alliance Data Systems will have nine data centers located in Dallas; San Antonio; Mission, Kan.; Voorhees, N.J.; and Columbus, Ohio.

CONTACT: Meltzer & Martin Public Relations, Dallas

Margo Isbell or Leah Cave, 214/953-0808