Free Writing Prospectus

Investor

Presentation

September 2008

Issuer Free Writing Prospectus

Filed Pursuant to Rule 433

Registration Nos. 333-141703,

333-141703-01 and 333-141703-02

The following slides are part of a presentation by Discover Financial Services (the "Company") and its subsidiary,

Discover Bank and are intended to be viewed as part of that presentation. The presentation is based on information

generally available to the public and does not contain any material, nonpublic information.

The information provided herein may include certain non-GAAP financial measures. The reconciliations of such

measures to the comparable GAAP figures are included in the Company’s Form 10-K for the year ended

November 30, 2007 and the Company’s 3 Quarter Earnings Release furnished on Form 8-K dated September 25,

2008, each of which is on file with the SEC and available on the

Company’s website at www.discover.com.

The presentation contains forward-looking statements. You are cautioned not to place undue reliance on forward-

looking statements, which speak only as of the date on which they are made, which reflect management’s

estimates, projections, expectations or beliefs at that time and

which are subject to risks and uncertainties that may

cause actual results to differ materially. For a discussion of certain risks and uncertainties that may affect the future

results of the Company, please see "Special Note Regarding Forward-Looking Statements," "Risk Factors,"

"Business –

Competition," "Business –

Regulatory Matters" and "Management’s Discussion and Analysis of

Financial Condition and Results of Operations" in the Company’s Annual Report on Form 10-K for the year ended

November 30, 2007, and “Risk Factors”

and “Management’s Discussion and Analysis of Financial Condition and

Results of Operations”

in the Company’s Quarterly Report on Form 10-Q for the quarter ended May 31, 2008,

which are on file with the SEC.

Certain historical financial information about the company that we have included in this presentation has been

derived from Morgan Stanley’s consolidated financial statements and does not necessarily reflect what our financial

condition, results of operations or cash flows would have been had we operated as a separate, stand-alone

company during the periods presented.

Notice

Discover Bank, Discover Card Master Trust I, and Discover Card Execution Note Trust have filed a registration statement as

amended (including a prospectus) (Registration Nos. 333-141703, 333-141703-01, and 333-141703-02) with the SEC. You

should read the prospectus in that registration statement and other documents Discover Bank, Discover Card Master Trust I, and

Discover Card Execution Note Trust have filed with the SEC for complete information about Discover Bank, Discover Card

Master Trust I, and Discover Card Execution Note Trust. You may get these documents for free by visiting EDGAR on the SEC

Web site at www.sec.gov

Today’s Agenda

•

Business Overview

•

Credit Risk Management

•

Liquidity & Funding

•

Summary

•

Appendix: Summary of DCENT Securitization

Structure

Business Overview

***************

*************

Unique Business Model

•

Only card issuer that operates a

global payments network with both

credit and debit capabilities

•

Discover’s network supports the

card issuing business through:

–

Building Discover brand

–

Joint promotions with merchants

–

Operational efficiencies

•

Advantages in payments:

–

Broad offering for issuers (credit,

PIN and signature debit, ATM)

–

Leveraging largely fixed

cost network

Card

U.S.

Issuing

Credit

Debit

International

American Express

Visa

MasterCard

First Data

Metavante

Citi

Bank of America

JPM Chase

Capital One

Payments

•

PULSE and Discover Network

third-party payments business

–

4,500+ financial institutions

–

$115.6Bn network volume

(2)

•

Diners Club International

•

Discover cards issued on Discover

Network

–

largest issuer

–

$50.4Bn receivables

(1)

–

$106.6Bn total credit card

volume

(2)

–

3 largest U.S. merchant network

Third-Party

Payments

Business and Objectives

Note(s):

(1)

Receivables reported on a managed basis as of August 31, 2008

(2)

Volumes reported for the trailing four quarters ended 3Q08; Third-Party Payments includes 3Q08 Diners Club volume

•

2.9% pretax ROMR

•

4%-8% loan growth

•

Actively manage credit quality

Objectives

•

Global acceptance

•

18%+ third-party volume growth

•

Integrate Diners Club International

U.S. Card

Our Networks

•

Branded, scalable, signature network

•

Broad product range with unique

functionality

•

‘Closed loop’

network benefits

•

Reciprocal agreements with China

UnionPay and JCB

$103Bn

30+

•

3 largest PIN / POS network

•

Reciprocal agreements with

China UnionPay, JCB and Link

$104Bn 4,500+

•

Global payments network

•

POS and ATM acceptance across

185 countries

•

6 million cards issued

$31Bn 40+

Overview

Volume

(1)

Issuers

Note(s):

(1)

Volumes reported for the trailing four quarters ended 3Q08 (Discover Network and PULSE), fiscal year ended 2007 for Diners Club

International

Large Merchants

Small Merchants

New Acceptance Strategy

Merchant Acceptance

% of Visa/MasterCard Merchants

~85%

(1)

3 party

acquirer

opportunity

~100%

Note(s):

(1)

Acceptance estimate based upon Roper survey and data provided by

third party acquirers

Sample Third-Party

Acquirers Signed

Complementary Networks

EMEA

Asia

North America

Latin America

Seasoned Management Team

Discover Financial Services

JAMES PANZARINO

SVP, Chief Credit Risk Officer

2003 / American Express

ROGER HOCHSCHILD

President & COO

1998 / MBNA

DAVID NELMS

Chief Executive Officer

1998 / MBNA

KELLY MCNAMARA-

CORLEY

EVP, General Counsel &

Secretary

1999 / Morgan Stanley

ROY GUTHRIE

EVP, Chief Financial Officer

2005 / Citigroup

CARLOS MINETTI

EVP, Cardmember Services &

Consumer Banking

2001 / American Express

MARGO GEORGIADIS

EVP, Chief Marketing Officer

2004 / McKinsey

DIANE OFFEREINS

EVP, Chief Technology Officer

1998 / MBNA

STEPHEN

ETHERINGTON

SVP & Treasurer

2007 / JPMorgan

Date Joined / Previous Employer

HARIT TALWAR

EVP, Discover Network

2000 / Citigroup

KEVIN SWEENEY

Director Treasury

2006 / MBNA

KEVIN KILLIPS

SVP, Controller & Chief

Accounting Officer

2008 / ABN AMRO

Credit Risk Management

**********

Credit Risk Management Framework

•

Risk Tolerance

–

Target market is prime credit segment in the U.S.

–

Risk adjusted return framework used for marginal decisions

•

Risk Governance

–

Credit policy and process changes reviewed and approved

–

Policy recommendations consider full impact on revenue, expenses

and loan losses

•

Risk Principles

–

Independent credit risk management function

–

Management of risk exposures through approved risk limits

–

Business unit ownership of risk / reward decisions

Acquisition Process

•

Systemic decisions

supplemented by credit

analyst reviews

•

Apply credit criteria including

assessment of stability,

ability and willingness to pay

•

Use internally derived credit

models incorporating

application and bureau data

•

Assign credit line using

macroeconomic information

•

Fully integrated acquisition

decision making and controls

New Credit Card Account

Average FICO Score at Booking

734

737

738

734

2004

2005

2006

2007

Portfolio Positioning in Current Environment

DFS

Homeownership

Distribution

(2)

Mortgage

Distribution

(2)

(3)

Demographic

Profile

(1)

73%

48%

42%

65%

36%

30%

Married

College Graduate

Income > $75K

Discover

Other Issuers

Mortgages

54%

Own

Outright

21%

Rent,

Other

25%

Fixed Prime

73%

Fixed Non-

Prime

ARM Non-

Prime

ARM Prime

15%

Source:

(1)

TNS Financial Services’

2007 Consumer Card Study

(2)

Based on Credit Bureau and internal data

(3)

Distribution

Discover

cardmembers

who

have

mortgage

Proactive Portfolio Management

Prior to the subprime difficulties

•

Identified areas of concern in our portfolio using tradeline data

•

Refined geographic risk rules for marketing activities and

credit line actions

•

Tightened underwriting criteria to applicants with

overextended mortgages

Once problems appeared

•

Identified and reduced marketing into rising risk areas

•

Suppressed automated line increases in riskier states

•

Closed potentially high-risk inactive accounts

10%

13%

12%

15%

14%

17%

16%

18%

19%

22%

26%

22%

Discover

Chase

Capital

One

Citibank

BofA

AMEX

California

Florida

Portfolio Positioning Versus Peers

Note(s):

(1)

Latest

Master

Trust

balances

9/16/08;

based

receivables

(2)

Weighted

average

tenure

the

receivables

that

are

assets

the

Chase

Issuance

Trust

(3)

Based

July

2008

calendar

year

YTD

average

(4)

Excludes

Discover

Financial

Services

and

American

Express

(5)

Represented

Chase’s

CHAIT

Master

Trust

accounts

outstanding

(2)

Distribution of Receivables

(1)

Portfolio Tenure

(1)

> 5 Years

(two states with the highest mortgage foreclosure rates

)

Cardmember Attrition

(3)

4.1%

7.2%

Discover

U.S. Industry Average

(4)

Source:

Cardweb’s

July

2008

Monthly

Survey

and

Company

data

(5)

58%

46%

58%

60%

73%

79%

Discover

Citibank

BofA

Chase

AMEX

Capital

One

2004

2005

2006

1Q07

2Q07

3Q07

4Q07

1Q08

2Q08

Discover

Chase

Capital One

AMEX

BofA

Strong Relative Credit Performance

Source:

SEC Filings

Managed 30+ Day Delinquency Rate

(1)

(2)

(3)

(2)

(4)

(2)

•

Since 2003, enhanced credit policies

and practices

–

Tightened underwriting standards

–

Enhanced account management

–

Leveraged state-of-the-art databases

and analytic tools

•

Strong focus on credit quality

Note(s):

(1)

Discover fiscal year, all others calendar year

(2)

U.S. Card

(3)

Card Services

(4)

U.S. Consumer and Business Card

(5)

Trust data as of 8/31/2008; CHAIT represents Chase

2004

2005

2006

1Q07

2Q07

3Q07

4Q07

1Q08

2Q08

Discover

Citigroup

Chase

Capital One

AMEX

BofA

Strong Relative Credit Performance (cont’d)

Note(s):

(1)

Discover fiscal year, all others calendar year

(2)

U.S. Card

(3)

North America

(4)

Card Services

(5)

U.S. Consumer and Business Card

(6)

Trust data as of 8/31/2008; CHAIT represents Chase

Source:

SEC Filings

Managed Net Charge-Off Rate

(1)

(2)

(3)

(4)

(2)

•

Substantial in-house collections program

•

have

not

practice

sold

charged-off

accounts

(5)

(2)

Liquidity & Funding

************

***********

Bank Notes

0.4%

Other

0.01%

Secured

Borrowings

Unsecured

Borrowings

Private CC

ABS

Deposits

47%

Term CC

ABS

(1)

41%

Notes:

(1)

Includes retained subordinate tranches

Source

$Bn %

Managed Funding

As of 8/31/08

Deposits

26.9

47.1%

Term CC ABS¹

23.4

41.1%

Private CC ABS

4.9

8.5%

Secured Borrowings

0.8

1.4%

Unsecured Borrowings

0.8

1.4%

Bank Notes

0.2

0.4%

Other

0.0

0.0%

Total

57.0

100.0%

4,842

3,263

7,242

7,684

8,768

5,100

10,276

4,626

5,695

5,900

7,668

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012+

Discover Card Master Trust Issuance/

Maturity Schedule

DCMT I Issuance / Maturities –

As of August 31, 2008

($MM)

$28.3Bn asset-backed securitization portfolio

(Fiscal Year Basis)

ABS Issuance

ABS Maturities

Bank Deposit Funding

•

Broker sourced deposits are

sold through top tier U.S.

wealth management firms

•

Discover continues to focus on

extending maturity profile by

issuing deposits in longer

tenures

•

Direct-to-consumer deposit

issuance continues to grow

Bank Deposits –

3Q08 (Bn)

$4.8

$19.8

$2.2

Brokered

Direct-to-Consumer and Others

Sweeps

Contingent Funding Sources

Note(s):

(1)

Includes Goldfish liquidity

At Spin

(Bn)

June 2007

November 2007

Aug 2008

Cash

$5.1

$8.3

$9.6

Conduit Open Capacity

2.4

1.9

$1.5

Multi-bank Credit Facility

2.5

Total Contingent Funding

$10.0

$12.7

$13.6

AAA ABS Capacity

2.8

5.0

(1)

Capital Management

Tangible Equity/Net Managed

Receivables

Capital Management

•

Capital has strengthened since

spin-off

–

Solid earnings

–

Sale of U.K. business

•

Quarterly dividends of $0.06 per

share since spin-off

•

Long-term ratings at

Discover Bank

•

Fitch

BBB

•

Moody’s

Baa2

•

S&P

BBB

9.4%

11.2%

6/ 30/ 2007

Spin-off

3Q08

Summary

***************

*******

Summary

Strong Discover franchise

•

Tenured, loyal, credit-worthy customers

•

Strong brand, rewards leader

•

Award winning customer service and operations

Strong Payments momentum/unique franchise

•

2X+ volume growth over past four years

•

4,500 financial institution customers in debit and credit

•

Diners Club acquisition to provide global acceptance

•

Partnerships with JCB and CUP

Stable financial strategy

•

20 year history of financing through securitizations

•

Strong current Trust performance -

three month average excess spread 7.41%

•

Multi-channel sources of financing, liquidity

•

Well capitalized

Appendix: Summary of

DCENT Securitization

Structure

Summary Structure and Payment Waterfalls

Source:

SEC Filings

Discover Bank

DCMT

Discover Card Master Trust

DCENT

Discover Card Execution Note Trust

Class A

Investors

Class B

Investors

Class C

Investors

Receivables

Series 2007-CC

Collateral Certificate

Class A

Notes

Class B

Notes

Class C

Notes

Other Series

of Certificates

Existing

DCMT

Investors

DiscoverSeries Finance Charge Amounts

Class A Interest

Class B Interest

Class C Interest

Servicing Fees

Reimburse Current Charged-off Receivables

Reimburse

Class

Deficits

-1

Reimburse

Class

Deficits-

Reimburse

Class

Deficits

-1

Deposits into the Accumulation Reserve

Deposits into Class C Reserve

Deposits into DCMT Reallocation Accounts

Pay Discover Bank

Class

Interest

Shortfalls

Class

Interest

Shortfalls

Servicing

Fees

Shortfalls

Class A Principal

Prefund Class A Notes

Class B Principal

Prefund Class B Notes

Class C Principal

Deposits into DCMT Reallocation Account

Reinvestment in New Receivables

DiscoverSeries Principal Amounts

1 –

due to charge-offs from prior periods

2 –

payable out of subordinate principal cashflows

Spread Account

Source:

Recent Transaction Prospectuses

Note:

(1)

For CCCIT and CHAIT, 6.75% when excess spread drops below 0.00%

•

The spread account ramps up based on 3-month excess spread and provides additional credit enhancement in the event of

prolonged economic cycle changes

•

Credit enhancement provided by the spread account is consistent with other deals in the market

7.75

6.00

(1)

6.00

(1)

6.00

Less than 2.00 or Early

Redemption Event

6.00

5.00

4.50

2.00 to 2.49

5.00

4.00

3.50

2.50 to 2.99

3.50

2.75

3.00 to 3.49

2.75

1.75

2.00

3.50 to 3.99

1.75

1.25

4.00 to 4.49

0.00

4.50+

COMET

CHAIT

CCCIT

BACCT

DCENT

Excess Spread Percentage

Three-Month Average

Spread Account Funding Schedule (%)

Variable Spread Account

•

The reserve account provides credit enhancement solely for the Class C notes to cover shortfalls of interest and to reimburse losses

related to charged-off receivables or the application of series principal amounts allocated to these notes to pay interest on senior

notes

or servicing fees

•

If the funded amount of the spread account exceeds the targeted amount, the difference will be released and treated as series

finance charge amounts

•

The three-month average excess spread for the DiscoverSeries notes will determine the funding percentage, which is multiplied by

the total balance of all outstanding dollar principal amounts minus certain amounts on deposit in the principal funding subaccounts for

maturing tranches of DiscoverSeries notes

Traditional Structures

•

In most credit card master trusts, finance charge collections are allocated pro rata on each payment date

between the investor interest in receivables and the seller interest. As the investor certificates begin to

amortize, certificateholders are entitled to a smaller percentage of finance charge collections

Methodology

•

Before early redemption, the investor interest in receivables and seller interest receive their pro rata share of

finance charge collections

•

During early redemption, as the invested amount decreases, investors continue to be allocated finance charge

collections as at the beginning of the early redemption cycle

–

Investor credit protection enhanced by “fixing”

the finance charge allocation percentage between investors

and the seller at the time of an early redemption event

•

The result is an over-allocation of finance charge collections

Benefits

•

Feature permits a larger percentage of finance charge collections to be allocated to investors after an early

redemption event

During Amortization Periods

•

Allocation Percentage generally equals

–

Investor Interest in receivables at time of Early Redemption Event / Current Principal Receivables

–

Aggregate investor allocation can not exceed 100%

•

Numerator is “fixed”

to amount of investor interest in receivables at time of early redemption; denominator reflects current level

of principal receivables

•

DiscoverSeries structure retains ability to change allocation method, but Rating Agency Confirmation is required

Fixed Method of Allocation of Finance Charges

DCMT / DCENT Performance Data

20.25%

2.85%

1.20%

7.05%

8.06%

4.31%

5.77%

19.14%

15.32%

Aug-08

20.68%

2.87%

1.14%

7.83%

8.81%

5.16%

5.41%

19.53%

15.81%

Jul-08

20.57%

2.85%

1.13%

7.35%

8.29%

4.78%

5.55%

18.99%

15.42%

Jun-08

20.24%

2.91%

1.10%

7.72%

8.54%

5.04%

5.55%

19.43%

15.87%

May-08

20.88%

2.69%

1.14%

8.50%

8.78%

4.92%

4.62%

20.54%

16.67%

Dec-07

21.46%

2.88%

1.19%

7.52%

7.58%

4.73%

4.52%

18.81%

15.95%

Jan-08

20.43%

2.96%

1.16%

8.29%

9.20%

6.58%

4.81%

19.76%

17.09%

Feb-08

20.18%

2.95%

1.17%

8.78%

9.55%

6.24%

5.23%

20.12%

16.76%

Mar-08

19.25%

2.94%

1.11%

7.74%

8.30%

4.88%

5.29%

18.82%

15.37%

Apr-08

21.24%

2.22%

0.94%

7.93%

4.30%

4.46%

20.16%

16.53%

May-07

20.53%

2.21%

1.02%

7.27%

3.82%

4.21%

19.11%

15.66%

Jun-07

21.81%

2.28%

1.02%

10.43%

8.73%

5.23%

3.90%

20.06%

16.57%

Jul-07

21.61%

2.34%

1.06%

8.74%

7.91%

4.26%

3.91%

19.99%

16.34%

Aug-07

20.61%

2.47%

1.12%

7.96%

8.40%

5.22%

4.04%

20.04%

16.86%

Sep-07

21.05%

2.56%

1.16%

7.64%

8.88%

5.58%

3.98%

20.55%

17.20%

Oct-07

19.74%

2.65%

1.17%

7.85%

8.30%

4.69%

4.46%

20.08%

16.45%

Nov-07

Payment

Rate

60-179

Days

30-59 Days

Discover

Series

Interchange

Subgroup

Group

Net Charge-

off

Yield incl.

interchang

Yield excl.

Principal

Recoveries

Delinquencies

Excess Spread

Yield

Comparative Portfolio Statistics

5/31/08

6/29/08

3/2008

6/30/08

8/31/08

As of:

18.53

19.19

17.87

15.44

20.25

Monthly Payment Rate

3.04

4.11

4.45

5.94

4.06

Delinquencies

6.59

5.51

8.44

5.60

8.39

3-Mo Excess Spread

4.98

6.53

5.33

(5)

7.62

5.77

Net Credit Losses

15.47

15.44

18.96

18.00

19.14

Portfolio Yield

Portfolio Performance (%)

0.96

1.37

0.74

0.80

0.82

No Score

55.76

39.91

42.75

34.80

41.44

Over 720

24.82

33.14

27.43

35.10

31.50

661 –

720

10.84

16.01

15.44

17.10

13.99

601 –

660

7.62

9.57

13.64

12.20

12.25

Less than or equal to 600

FICO Distribution (% of total receivables outstanding)

11,269

(4)

10,721

6,340

14,120

9,025

Average Credit Limit

(3)

82,911

(4)

77,693

46,419

99,005

38,634

Portfolio Size ($MM)

(2)

Chase

Issuance Trust

CHAIT

Citibank Credit

Card Issuance

Trust

CCCIT

Capital One Multi-

Asset Execution

Trust

COMET

BA Credit

Card Trust

BACCT

Discover Card

Master Trust I

DCMT

Comparative Portfolio Statistics

(1)

Source:

Monthly Investor Reports, SEC Filings, Publicly Available Company Data

Notes:

(1)

Data obtained via most recent publicly available reports, as of 8/31/08 unless noted otherwise; DCMT Portfolio Yield and Excess Spread includes interchange fees.

(2)

Represents end of period principal receivables.

(3)

Credit Limit as disclosed in latest offering documents filed with SEC; BACCT 7/29/08, COMET 5/23/08, CCCIT 6/20/08, CHAIT 8/1/08;

(4)

Represents

64.7Bn

Chase

Issuance

Trust,

3.2Bn

Chase

CCMT,

15Bn

First

USA.

FICO

breakdowns

and

Average

Credit

Limit

are

for

Chase

Issuance

Trust.

(5)

Gross charge-offs.