Epsilon Signs 19 New Email Clients in Q1 2009;

May 06, 2009, 07:30 ET from Alliance Data

Record First Quarter for U.S. and International Business Wins and Permission-Based Emails Deployed

Ad Age Again Ranks Epsilon #1 Direct Marketing Agency

DALLAS, May 6 /PRNewswire-FirstCall/ -- Epsilon announced today an unprecedented new client roster for its permission-based email and digital solutions business in the first quarter 2009. New wins include well known brands such as Scottrade and TCF Bank. Epsilon, the industry's leading marketing services firm, and an Alliance Data (NYSE: ADS) subsidiary, experienced significant growth with new client wins, renewals and expansions in the United States as well as Europe and Asia. Epsilon also posted a first-quarter volume record with 8 billion permission-based emails deployed.

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While Epsilon's solutions differ across these new clients, a typical client assignment begins with the collection of consumer data from a variety of sources, including through the client, Epsilon's own proprietary data sources, and list services, among others. Epsilon then mines that data to develop micro-targeted ROI-based marketing campaigns, which are deployed through permission-based emails using its proprietary technology platform. Finally, Epsilon applies sophisticated analytics to evaluate campaign performance and the impact of those campaigns on sales, customer engagement and brand affinity.

According to Forrester Research, email marketing has a compound annual growth rate of 9 percent and email marketing spend will grow to more than $4 billion by 2012.(1)

In the Asia-Pacific region during Q1, business expanded rapidly with year-to-date volumes up 50 percent from the same time last year and prominent new clients such as Air China. In Europe, new accounts represent brands such as Cartier; National Trust, one of Europe's largest conservation charities; e-Conversions, an award-winning online marketing company; and Scout, Germany's largest online consumer portal.

In addition, the 65th Annual Advertising Age Agency Report released last week ranked Epsilon number one Direct Marketing Agency in the United States and number four U.S. Agency across All Disciplines based on revenues.

According to Bryan Kennedy, president of Epsilon, "In spite of increasingly scrutinized marketing budgets and the downturn in the global economy, Epsilon's U.S. and international business thrived in the first quarter of this year. In fact, these record signings provide additional comfort in hitting our 2009 target as they ramp-up in the latter half of the year. Importantly, these 19 signings are a testament to the growing demand for highly targeted, ROI-based digital marketing solutions such as Epsilon offers. Our technology, experience and client-centric approach are what drive our business, and we will continue to invest in our core capabilities and technology to deliver robust and strategic marketing solutions for our clients.

"Additionally, we had a record first quarter with more than 8 billion permission-based emails deployed worldwide," Kennedy continued. "Clearly this indicates that marketers are recognizing the high value and seeing measurable results as we help deploy targeted email communication strategies that strengthen their customer relationships and grow their businesses."

Clients enlisting Epsilon for email marketing support in early 2009 represent a number of industries including financial services, retail, travel, and consumer packaged goods and span a variety of multi-channel direct and digital marketing services.

"Our leading proprietary technology, such as the DREAM platform, vast capabilities and talented team played a major role in these recent wins," said Andrew Frawley, president of Epsilon's Digital Solutions group. "These new clients are eager to take advantage of DREAM 8, our next-generation, multi-channel marketing application which provides enhanced functionality, innovative features and a customizable dashboard."

(1) Forrester US Interactive Marketing Forecast 2007 To 2012, October 10, 2007

About Epsilon

Epsilon is the industry's leading marketing services firm. Ad Age ranks Epsilon #1 U.S. Direct Marketing Agency. Services include strategic consulting, database and loyalty technology, proprietary data, predictive modeling and a full range of creative and interactive services including brand and promotional development, web design, email deployment, search engine optimization and direct mail production. In addition, Epsilon is the world's largest permission-based email marketer. Epsilon is an Alliance Data company. For more information, visit www.epsilon.com or call 1.800.309.0505.

About Alliance Data

Alliance Data (NYSE: ADS) and its family of businesses is a leading provider of loyalty and marketing solutions derived from transaction-rich data. Through the creation and deployment of customized solutions that measurably change consumer behavior, Alliance Data helps its clients to create and enhance customer loyalty to build stronger, mutually beneficial relationships with their customers. The Company manages millions of customer relationships for some of North America's largest and most recognizable brands, helping them grow their businesses and drive profitability. Headquartered in Dallas, Alliance Data employs approximately 7,000 associates at approximately 50 locations worldwide. Alliance Data is a leading provider of marketing-driven credit solutions, and is the parent company of Epsilon(R), a leading provider of multi-channel, data-driven technologies and marketing services, and LoyaltyOne(TM), which owns and operates the AIR MILES(R) Reward Program, Canada's premier coalition loyalty program. For more information about the company, visit its web site, www.AllianceData.com.

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SOURCE Alliance Data