Thank You for your sponsorship

1. Thank You for your sponsorship

2. Lunch Presentation by Gridley & Company LLC February 14, 2008

3. Agenda • Quick Gridley Commercial • Wall Street Perspective • Favorite Investment Themes

4. Quick Gridley Commercial

5. Gridley’s Investment Banking Effort is Focused on a Few Related Sectors of Information Services Financial Technology and Outsourcing Services Advertising & Marketing Services INFORMATION & TECHNOLOGY & SERVICES Database / Information Services Internet Services

6. Gridley’s Value Proposition • Highly strategic approach • Buyside work for industry leaders • Sellside and fundraising work for private companies • Host of Bellwether Events • 1,850+ quarterly newsletter distribution

7. 10 + Years of Revolutionizing the Marketing Services Industry through Transactions

8. Wall Street Perspective

9. Reflections on 2007

10. 2007 Stock Market Performance • Marketing Services ↓5% • Internet Services ↓ 2% • Winners • Ad Networks in China • Internet Services • Losers • Data / Database Marketing • Teleservices

11. 2007 M&A Themes • Market leaders go private • Internet Titans enter eMarketing with a “bang” • Growing interest in social media • WPP takes M&A road less travelled • Valassis completes ADVO deal – for better or worse

12. Gridley Newsletter Projections for 2007 What We Said in Dec. 2006 - Marketing Services • Hopes for a more exciting year than 2006 • Continuation of ad spending shift • “Consumer Pull” marketing is here to stay • Database marketing = core capability for next generation marketing • Harte-Hanks LBO? • Industry transforming deal in eMarketing?

13. Gridley Newsletter Projections for 2007 What We Said in Dec. 2006 - Internet Services • The consumer is “king” • Slow increase in M&A consolidation throughout the year • Use of internet and digital devices to reach consumers in new ways • Growth in local online advertising • More “real action” by traditional media companies • Seemingly unstoppable Google – what’s next? • Emergence of a new e-marketing industry leader?

14. Outlook for 2008

15. Gridley January Conference Projections Marketing Services in 2008 • Direct mail takes a hit • Client frustration with traditional providers becomes more evident • Clients show their insatiable appetite for data analytics • Ad spending without the internet, Olympics & elections looks bleak • Valassis, Harte-Hanks, or Vertis get acquired • Increase in M&A activity by ad holding companies?

16. Gridley January Conference Projections Internet Services in 2008 • Globalization – Foreign buyers increase U.S. presence • ValueClick gets sold? • The 4 Titans continue to dominate • Strong sector M&A activity continues • Broadening buyer universe • Plethora of acquisition opportunities • Media companies become more aggressive buyers

17. 2008 M&A Themes YTD • The internet Titan game continues • Microsoft / Yahoo! • AOL / Buy.at • Public buyers seek high quality growth opportunities • GSI Commerce / e-Dialog • WPP / Yankelovich • LBO / credit crunch hangover • Alliance Data Systems

18. Favorite Investment Themes

19. Marketing Services Industry Themes • Large market in significant transition • Client frustration • Consumers in control • Traditional leaders faltering • Technology importance increasing • Use of data is CEO level issue • Internet Titans have arrived • Without Olympics and Elections, traditional ad spending looks bleak

20. Marketing Services Industry Themes • Opportunity for New Industry Leaders • Data driven solutions • ROI focus • Vertical market expertise • Customer segmentation and lifecycle management • Well targeted, integrated, multi-channel marketing campaigns • Core delivery platform = technology and the internet

21. Integrated, Measurable, Information-based Marketing Services Offer Greatest Value Proposition 1996 1997 - 1998 1998 - 1999 2000 - 2001 2002 - 2008 Multi-channel Model Mass Marketing Direct Marketing Internet Marketing Integrated Model Database Marketing Mass Marketing Direct Marketing Database Marketing Internet Marketing Consumer Focused High Same as Integrated Consumer Opt-in is key Real-time Feedback and Analytics Multi-channel Same as Integrated with personalization Approach Mass - Orientation Segmentation Narrower Segmentation One - to - One Maximize Future Value Mass - Orientation Segmentation Narrower Segmentation One - to - One Maximize Future Value Knowledge of None Low Medium High High None Low Medium High Highest Customer Behavioral & Behavioral & Website Surveys Website Surveys Information Source None In - house Lists Legacy Transactional Data, None In - house Lists Legacy Transactional Data, Registrations and Registrations and Rental Lists Database Utilizing E - mail Rental Lists Database Utilizing E - mail Profile Information Profile Information Distribution Lists Distribution Lists Customer Expresses Tools None List Analysis Modeling Customer Expresses Cycle of Feedback None List Analysis Modeling Cycle of Feedback Interest Interest and Analysis and Analysis Internet Surveys Medium Internet Surveys Radio, T.V. Direct Mailing Direct Mailing Targeted Ads, E - mail, Radio, T.V. Direct Mailing Direct Mailing Targeted Ads, E - mail, Search, E - Mail E - Mail Telemarketing Telemarketing Search, Direct Mail Telemarketing Telemarketing Direct Mail Customer Requests Strategy Customer Requests Marketer Blankets Marketer Targets Marketer Targets Integrated, Opt - in, Marketer Blankets Marketer Targets Marketer Targets Integrated, Opt - in, Information From Information From Everyone by List Segments by Database Privacy Protected, Everyone by List Segments by Database Privacy Protected, Marketer Marketer Transaction Driven Transaction Driven High Response Rate High Response Rate Get Message to Consumer When & How They Want It Expensive Low Cost Expensive Low Cost Very Expensive Expensive High Measurability Very Expensive Expensive High Measurability Medium Measurability High Measurability Key Issues Medium Measurability High Measurability Unknown Response Low Measurability Increased ROI Unknown Response Low Measurability Increased ROI Above Average High Response Rate Above Average High Response Rate Rate Low Response Rates Unmatched Targeting Rate Low Response Rates Unmatched Targeting Response Rate Interactive Response Rate Interactive Capability Capability

22. Reaching the “Right” Consumer With the “Right” Message Using the “Right” Communication Vehicle is Imperative Internet, Email, Podcasts, and Blogs Mobile, RSS Inbound and Outbound Phone Calls Direct Mail Advertising – TV, Radio, Print Fax and Fax Back Service Voice Response Unit Face to Face Contact

23. Consumer Problems Vary by Industry – Sophisticated Solutions Needed Key Consumer Issue Industry Automotive – Maintaining Customer Relationships through Fragmented Dealer "Middlemen" and Multi-year Buy Cycles Consumer Packaged Goods – How to Create Brand Loyalty in an Increasingly Price/Promotion Sensitive Industry Financial Services – Real-time Risk Management – How to be the Multi-Service Provider to High Lifetime Value Customers Technology – Lead Management Telecom – Customer Churn

24. Increasing Importance of Data Analytics • Data is everywhere, key is how to interpret • Data analytics enables: • Customer segmentation • Targeted Communications • Measurement of Campaign effectiveness • Internet enables real-time capabilities

25. The Use of Data Drives Value • Core component for effective marketing solutions

26. Customer Lifecycle Management is Better Than Campaign Oriented Approach

27. Consumers Shift to New Media

28. Advertisers Follow, But Not Fast Enough • 2008E internet advertising = $23.8 billion • +22% growth vs. 2007 • Mainstream spending, not pilot projects anymore Time Consumers Spend Online Online Advertising Spend

29. Opportunities for the Future - Summary • Clients are “Desperate for Disruption” • New data driven industry leaders needed • Consumers are firmly in control • Integrated multi-channel marketing is key to success • Technology is the innovation driver Go Forth With New, Innovative Solutions!

30. Happy Valentine’s Day From Gridley & Company LLC

31. Alliance Data Case Study: Achieving Market Leadership via Acquisitions • Alliance Data has become a marketing services powerhouse via an acquisition program • Cornerstone deals • Loyalty Group Mgmt Canada (1998) - $183 million • Epsilon Data Management (2004) - $300 million • Big Foot Interactive (2005) - $120 million • Abacus Direct (2006) - $435 million

32. Alliance Data Case Study: Achieving Market Leadership via Acquisitions • Epsilon was viewed as a “tired, always for sale” property when ADS acquired the Company in 2004 • Marketing Services is now the largest business segment for ADS (41% of revenue) and is considered a favorite buyer in the industry • ADS’s stock price has significantly outperformed vs. its peer group and it has increased its EBITDA margins from 14% to 28%

33. Alliance Data’s Stock Has Outperformed Its Peers: +330% Since its IPO on 6/07/01 ADS Performance Versus Peer Groups • Marketing Services Comps include: Acxiom Corp., Equifax, Experian Group, Fair Isaac Corporation, Harte-Hanks, Inc., infoUSA, and Valassis Communications • Payment Processing Comps include: Cybersource Corp., Euronet Worldwide, Inc., Fair Isaac Corporation, Global Payments, Heartland Payment Systems Inc., and Total Systems