Alliance Data Systems Corporation (NYSE:ADS) and Alliance Data’s Epsilon business today announced that it has signed multi-year agreements with Sharper Image Corporation. Alliance Data will launch an integrated private label credit card program, and Epsilon will provide permission-based email marketing services for Sharper Image. Operating more than 180 retail locations, Sharper Image is a specialty retailer of innovative, high-quality electronics, personal care items, recreation and fitness accessories, housewares, toys, travel goods and gift items, with 2006 fiscal year-end revenues exceeding $525 million.

Under terms of the private label credit card agreement, Alliance Data’s bank subsidiary will provide Sharper Image with a full suite of services, including account acquisition and activation, receivables funding, credit authorization, card issuance, statement generation, electronic bill presentment services, remittance processing, marketing and customer service functions. The program will also include loyalty and reward incentives for eligible cardholders, such as merchandise discounts and rebate certificates based on purchases, invitations to in-store events, and other exclusive offers.

Additionally, under the terms of another multi-year agreement, Epsilon will deploy its proprietary email communications and campaign management platform for Sharper Image. Epsilon will also provide strategic consulting to help Sharper Image develop highly targeted permission-based email marketing campaigns designed to acquire and retain customers, and generate increased sales, including through up-sell and cross-sell opportunities.

“Working with Alliance Data, we have the ability to further enhance our marketing and sales initiatives through Alliance Data’s integrated credit and marketing services and its Epsilon business’ highly customized email marketing solution,” said Steven A. Lightman, president and chief executive officer of Sharper Image. “The fact that Alliance Data delivers complementary capabilities is of significant value to us. We will benefit from the company’s extensive expertise at driving sales, connecting with our customers and providing solutions that enhance our marketing and customer acquisition efforts.”

“We are pleased to provide a robust private label credit card solution that will augment Sharper Image’s multi-channel marketing strategy, and provide even more value to its customers,” said Ivan Szeftel, president of Retail Services at Alliance Data. “Sharper Image has an aggressive business plan, and we are confident in our ability to partner with them to drive sales. Additionally, Alliance Data’s Epsilon business will deliver additional marketing impact through the targeted delivery of customer-relevant email communications.“