X0202 4 2004-05-19 0001101215 ALLIANCE DATA SYSTEMS CORP ADS 0001212985 WELSH PATRICK J C/O WELSH, CARSON, ANDERSON AND STOWE 320 PARK AVENUE, SUITE 2500 NEW YORK NY 10022 0 0 1 0 Common Stock 2004-05-19 4 S 0 50000 35.90 D 210772 D The Reporting Person also indirectly beneficially owns (i) 17,790,349 shares held by Welsh, Carson, Anderson & Stowe VIII, L.P.; (ii) 5,489,942 shares held by Welsh, Carson, Anderson & Stowe VII, L.P.; (iii) 1,608,049 shares held by Welsh, Carson, Anderson & Stowe, VI, L.P.; (iv) 655,555 shares held by WCAS Capital Partners III, L.P.; and (v) 268,398 shares held by WCAS Capital Partners II, L.P. The Reporting Person is a general partner or managing member of the respective sole general partners of such limited partnerships. Pursuant to Instruction (4)(b)(iv) of Form 4, the Reporting Person has elected to report as indirectly beneficially owned the entire number of securities beneficially owned by each such limited partnership. The Reporting Person disclaims beneficial ownership of any securities, and any proceeds thereof, that exceed his pecuniary interest therein and/or that are not actually distributed to him. Jonathan M. Rather, Attorney-in-Fact 2004-05-20