Achieves Second Quarter Adjusted EBITDA of $76.5 Million
Trailing Twelve-Month Adjusted EBITDA of $304.0 Million
Company Reaffirms 2008 Adjusted EBITDA Guidance of $305 - $315 Million

NORWALK, Conn., July 31, 2008 - Affinion Group, Inc. ("Affinion" or the “Company"), a leading global affinity marketer of value-added membership, insurance and package enhancement programs and services to consumers, today announced its financial results for the three month period ended June 30, 2008.

"In spite of one of the most challenging economic environments our affinity partners and their customers have experienced in some time, our results for the quarter were strong, and confirm the resiliency of our business model and strategy” said Nathaniel J. Lipman, Affinion’s President and Chief Executive Officer. Commenting further on the results, Lipman added, “While we don’t project any near-term improvements in the macro economic environment, we are comfortable with the attainability of our targets, and, accordingly, we reaffirm our 2008 Adjusted EBITDA guidance of $305 to $315 million.”

Results Highlights
Note: readers are urged to review the section entitled “Important Notes” at the end of this release for a description of certain items affecting the results, including a definition of the term “Transactions”.

Net Revenues

• Net revenues for the second quarter of 2008 were $354.3 million as compared to $333.3 million for the second quarter of 2007.
• The increase in net revenues was due to growth in both the International and North American regions. The increase in North American revenue was primarily attributable to double digit revenue growth in Loyalty and a modest increase in Membership revenue.
• Net revenues excluding the impact of the Transactions increased $18.7 million, or 5.6% greater than the second quarter of 2007.
• Net revenues benefited $2.3 million in the quarter as compared to the second quarter of 2007 from a reduced impact of the non-cash adjustments in purchase accounting as part of the Transactions.

Operating Results

• Segment EBITDA for the second quarter of 2008 was $75.8 million as compared to $62.9 million for the second quarter of 2007. Segment EBITDA increased $0.8 million related to non-cash purchase accounting adjustments.
• Excluding the impact of the Transactions, Segment EBITDA increased $12.1 million, primarily due to higher net revenues, lower commissions and lower general and administrative expenses, partially offset by higher global marketing costs.
• Adjusted EBITDA (as defined in Note (d) of Table 7) was $76.5 million as compared to $65.4 million for the second quarter of 2007. The trailing twelve month Adjusted EBITDA of $304.0 million as of the second quarter 2008 reflects an increase of $31.4 million from the $272.6 million reported for the second quarter of 2007, and an increase of $19.7 million from the $284.3 million reported for the year ended December 31, 2007.

Segment Commentary

North America:
Membership products revenue for the second quarter increased $2.8 million as higher revenue per retail member and higher wholesale revenue from programs that were formerly retail were only partially offset by lower retail member volumes. Excluding the impact of purchase accounting, net revenue increased $2.2 million, as the Company continues to pursue its strategy of increasing the lifetime value of its overall member base. Membership Segment EBITDA increased $8.2 million in the quarter, primarily due to lower general and administrative costs, as well as lower marketing and commissions as the Company continued to reduce commission expenses as a percentage of revenue. Insurance and Package products revenue were virtually unchanged in the quarter as the 8.7% increase in net revenue per supplemental insured for the quarter was offset by lower Package revenues, primarily due to fewer Package members. Insurance and Package Segment EBITDA declined $0.5 million in the quarter primarily due to higher marketing and commissions. Loyalty products revenue increased $2.0 million, or 14.6%, due to growth in programs with existing and new clients. Loyalty Segment EBITDA grew $1.5 million due primarily to the increase in revenue.

International:
International revenue, excluding the impacts from purchase accounting, increased 27.4% primarily due to new retail memberships, growth in other retail programs, growth in package, and a favorable currency impact. For the quarter, International Segment EBITDA increased $4.1 million over 2007, principally due to the increase in revenue net of higher marketing and commissions, and other costs to support new retail programs, along with $0.6 million as a result of purchase accounting adjustments.

Selected Liquidity Data
Affinion has several debt instruments outstanding, including senior notes, senior subordinated notes, and senior secured credit facilities, which consist of a term loan facility and revolving credit facility. For a more complete description of Affinion’s debt instruments, see the note on Table 2.

At June 30, 2008, Affinion had $302.4 million outstanding under its senior notes (net of discounts and premiums), $655.0 million outstanding under its term loan facility, $351.6 million outstanding under the senior subordinated notes (net of discounts), and $24.0 million outstanding under its revolving credit facility with $74.5 million available for borrowing under the same revolving credit facility (after giving effect to the issuance of $1.5 million in letters of credit). A portion of the revolving credit facility was used to partially finance the approximately $50 million cash acquisition of a credit card registration membership business completed late in the fourth quarter of 2007, and the balance of the revolving credit facility has been reduced by $27 million since March 31, 2008.

In addition, at June 30, 2008, Affinion had $18.4 million of unrestricted cash on hand.

Since October 17, 2005, Affinion has prepaid $205.0 million, or approximately 23.8% of its original term loan balance. As previously announced, the Company expects to accomplish additional deleveraging in 2008.

Guidance
Affinion reaffirms its full year 2008 Adjusted EBITDA guidance of $305 - $315 million.

Call-In Information
Affinion will hold an informational call to discuss the results for the three month period ended June 30, 2008 at 10:00 am (EDT) on Thursday, July 31, 2008. The conference call will be broadcast live and can be accessed by dialing 1-866-394-8483 (domestic) or 1-706-758-1455 (international) and entering passcode 56431269. Interested parties should call at least ten (10) minutes prior to the call to register. The Company will also provide an on-line Web simulcast of its conference call at http://www.affinion.com/ir. A replay of the call will be available through midnight (EDT) August 7, 2008 by dialing 1-800-642-1687 (domestic) or 1-706-645-9291 and entering passcode 56431269.

Important Notes
On October 17, 2005, Affinion Group Inc. completed the acquisition (the “Transactions") of the marketing services division (the “Predecessor") of Cendant Corporation ("Cendant") pursuant to a purchase agreement dated July 26, 2005, as amended. Substantially all of the assets and liabilities of the Predecessor were acquired by Affinion in the Transactions.

The information presented in this release is a comparison of the unaudited consolidated results of operations for the three month period ended June 30, 2008 and unaudited consolidated results of operations for the three month period ended June 30, 2007.

Purchase accounting adjustments made in 2005 as a result of the Transactions had a modest impact on Affinion’s results of operations for the three month periods ended June 30, 2008 and 2007. For example, because deferred revenues were reduced in purchase accounting, net revenues recognized for periods following the Transactions were less than they otherwise would have been, with the majority of the impact of the purchase accounting adjustments recognized in 2005 through 2007. The effect of purchase accounting adjustments on Affinion’s results of operations for the three month period ended June 30, 2008 as compared to the three month period ended June 30, 2007 was to increase net revenues by $2.3 million and to increase Segment EBITDA by $0.8 million.

About Affinion Group
As a global leader with nearly 35 years of experience, Affinion Group (http://www.affinion.com) enhances the value of its partners’ customer relationships by developing and marketing valuable loyalty, membership, checking account, insurance and other relevant products and services. Leveraging its expertise in product development and targeted marketing, Affinion helps generate significant incremental revenue for more than 5,300 affinity partners worldwide, including many of the largest and most respected companies in financial services, retail, travel, and Internet commerce. Based in Norwalk, Conn., the company has approximately 3,300 employees throughout the United States and in 10 countries across Europe. Affinion holds the prestigious ISO 27001 certification for the highest information security practices, is PCI compliant and Cybertrust certified.

Safe Harbor Statement Under the U.S. Private Securities Litigation Reform Act of 1995
This press release may contain statements that are forward looking, as that term is defined by the Private Securities Litigation Reform Act of 1995 or by the Securities and Exchange Commission in its rules, regulations and releases. These statements include, but are not limited to, discussions regarding industry outlook, Affinion’s expectations regarding the performance of its business, its liquidity and capital resources, its guidance for 2008 and the other non-historical statements in the discussion and analysis. These forward-looking statements are based on management’s beliefs, as well as assumptions made by, and information currently available to, management. When used in this release, the words “believe”, “anticipate”, “estimate”, “expect”, “intend” and similar expressions are intended to identify forward-looking statements. Although management believes that the expectations reflected in these forward-looking statements are reasonable, it can give no assurance that these expectations will prove to have been correct. These statements are subject to certain risks, uncertainties and assumptions, including risks related to general economic and business conditions and international and geopolitical events, a downturn in the credit card industry or changes in the techniques of credit card issuers, market place consolidation among financial institution partners, industry trends, the effects of a decline in travel on Affinion’s travel fulfillment business, termination or expiration of one or more agreements with its affinity partners or a reduction of the marketing of its services by one or more of its affinity partners, its substantial leverage, restrictions contained in its debt agreements, its inability to compete effectively and other risks identified and discussed under the caption “Item 1A. Risk Factors” in Affinion’s Annual Report on Form 10-K for the year ended December 31, 2007 and the other periodic reports filed by Affinion with the SEC from time to time.

Download the release for complete financial tables

About Affinion Group
As a global leader with almost 40 years of experience, Affinion Group (www.affinion.com) enhances the value of its partners' customer relationships by developing and marketing loyalty solutions. Leveraging its expertise in customer engagement, product development and targeted marketing, Affinion provides programs in subscription-based lifestyle services, personal protection, insurance and other areas to help generate increased customer loyalty and significant incremental revenue for more than 5,550 marketing partners worldwide, including many of the largest and most respected companies in financial services, retail, travel, and Internet commerce. Based in Stamford, Conn., the company has approximately 4,250 employees and markets in 17 countries globally. Affinion holds the prestigious ISO 27001 certification for the highest information security practices, is PCI compliant and Cybertrust certified.

Safe Harbor Statement Under the U.S. Private Securities Litigation Reform Act of 1995
This press release may contain statements that are forward looking, as that term is defined by the Private Securities Litigation Reform Act of 1995 or by the Securities and Exchange Commission in its rules, regulations and releases. These statements include, but are not limited to, discussions regarding industry outlook, Affinion's expectations regarding the performance of its business, its liquidity and capital resources, its guidance for 2011, the consummation of the acquisition of Prospectiv and the impact to Affinion's business and the other non-historical statements in the discussion and analysis. These statements can be identified by the use of words such as "believes," "anticipates," "expects," "intends," "plans," "continues," "estimates," "predicts," "projects," "forecasts," and similar expressions. All forward-looking statements are based on management's current expectations and beliefs only as of the date of this press release and are subject to risks, uncertainties and assumptions that could cause actual results to differ materially from those discussed in, or implied by, the forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, risks related to general economic and business conditions and international and geopolitical events, a downturn in the credit card industry or changes in the techniques of credit card issuers, industry trends, foreign currency exchange rates, the effects of a decline in travel on the Company's travel fulfillment business, termination or expiration of one or more agreements with its marketing partners or a reduction of the marketing of its services by one or more of its marketing partners, the Company's substantial leverage, restrictions contained in its debt agreements, its inability to compete effectively, and other risks identified and discussed from time to time in Affinion's reports filed with the SEC, including Affinion's most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q. Readers are strongly encouraged to review carefully the full cautionary statements described in these reports. Except as required by law, the Company undertakes no obligation to revise or update publicly any forward-looking statements to reflect events or circumstances after the date of this press release, or to reflect the occurrence of unanticipated events or circumstances.