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Alliance Data's LoyaltyOne Business Announces Dotz Program Expansion Within Brazil's Northeast Region

Stocks in this article: ADS

DALLAS , Nov. 13, 2012 /PRNewswire/ -- Alliance Data Systems Corporation (NYSE: ADS), a leading provider of loyalty and marketing solutions derived from transaction-rich data, announced that CBSM - Companhia Brasileira De Servicos De Marketing ("Dotz"), operator of Brazil's dotz loyalty program (, in which LoyaltyOne holds a sizeable equity stake, has expanded into Recife, a metropolitan region comprising 8 key cities and with a total population of 3.7 million.

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Recife follows on the heels of the expansion into Fortaleza, which dotz entered earlier this year, and both of which are significant metropolitan areas in Brazil's Northeast region. Recife is the largest city in the metropolitan region with a population of 1.5 million, the largest commercial center and fifth-largest metropolitan area in the State of Pernambuco.

Consumers can collect dotz (points) at a growing number of national and regional sponsors in Brazil. With this latest expansion, the dotz program now operates in five markets in Brazil: Belo Horizonte; Brasilia; Sao Paulo State Interior; Fortaleza; and Recife, with a combined population of more than 18 million people.  To date, excluding Recife, more than 5 million consumers have enrolled in the program, already surpassing the year-end membership goal of 4 million. Additionally, exploring expansion in other regions of Brazil continues to move forward.

New Partners

Dotz also announced new partners joining the successful coalition loyalty program. New partners in the Recife metropolitan region include Dislub, a significant gas and service station chain with a strong presence throughout Brazil's Northeast region with 170 locations; Nagem, an office and stationary supplier; Jurandir, a household goods and clothing retailer; Tupan, a DIY retailer; and, Esplanda Express, a men's and women's boutique fashion retailer.

These new partners join dotz's existing pillar partners expanding into Recife including Banco do Brasil, one of Brazil's largest national banks; Ale, one of the nation's largest gasoline station chains; Bob's, a national fast food restaurant chain; Atlantica Hotels & Resorts, an upscale hotel chain; L'acqua di Fiori, a cosmetics retailer; and Pague Menos, a leading national Brazilian drug store chain.

"The dotz program is experiencing accelerated momentum," said Bryan Pearson, president of LoyaltyOne. "The expansion of national pillar partners, and the introduction of new regional retailers underscore the significant consumer interest in the program and the member value proposition. We will continue to work closely with the Dotz leadership team to explore new markets, open up new partner categories and drive dotz (point) issuance moving forward."

"Our presence in five markets and the signing of new partnerships in a relatively brief period of time speaks to the strength of the dotz loyalty program, and is further validation of our expansion strategy," said Roberto Chade, president of Dotz. "We anticipate seeing continued increases in both partner penetration and member participation as we explore the viability and enter new markets throughout Brazil."

The Coalition Loyalty Model; Geographic Market Opportunity

The dotz coalition loyalty program is similar to the Canadian AIR MILES® Reward Program - consumers can join online or at multiple participating sponsor locations to collect points on their dotz collector cards. Consumers accumulate dotz points through everyday shopping, which can be redeemed for various rewards.

Brazil has the fifth-largest population in the world with more than 190 million citizens (versus approximately 35 million in Canada) and has the characteristics required to host a successful coalition loyalty program.

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