AFFINION GROUP, INC. ANNOUNCES RESULTS FOR THE FOURTH QUARTER AND YEAR ENDED DECEMBER 31, 2008 ACHIEVES FOURTH QUARTER ADJUSTED EBITDA OF $79.0 MILLION INCREASES TRAILING TWELVE-MONTH ADJUSTED EBITDA TO $311.4 MILLION

NORWALK, Conn., Feb. 26, 2009 - Affinion Group, Inc. ("Affinion" or the “Company"), a global leader in customer engagement and provider of programs and solutions that enhance and extend the relationship of millions of consumers for financial service, retailing and e-commerce companies, today announced its financial results for the three and twelve month periods ended December 31, 2008 ("fourth quarter” and “full year”, respectively).

"Given the extremely challenging economic environment that began to affect our partners in 2008, we are very pleased with the quality of our performance this past year, as we recorded the highest revenue and Adjusted EBITDA in our history” said Nathaniel J. Lipman, Affinion’s President and Chief Executive Officer.

Regarding the Company’s expectations for 2009, Lipman added, “While the uncertain impacts of any worsening in the macro-economic environment on our partners and consumers - along with ongoing fluctuations in foreign-exchange rates - somewhat limit our insight into this upcoming year, we believe the strengths in our business model, coupled with the resiliency and quality of our programs, will allow us to achieve increases in Adjusted EBITDA and operating cash flow in 2009 over the record levels set in 2008.”

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”.

Fourth Quarter Net Revenues
- Net revenues for the fourth quarter of 2008 were $351.6 million as compared to $336.6 million for the fourth quarter of 2007, reflecting a 4.5% growth rate. Net revenues, excluding the impact of the Transactions, increased $9.3 million, or 2.8% greater than the fourth quarter of 2007.
- The increase in net revenues was due to continued growth in the North American region, with all lines of business posting increases over the fourth quarter of 2007, including double-digit growth in Loyalty. The increase in North American net revenues was partially offset by a decline in International, as unfavorable foreign-exchange rates negated the impact of strong gains in both new retail and package members.

Fourth Quarter Operating Results
- Adjusted EBITDA (as defined in Note (c) of Table 7) was $79.0 million as compared to $78.1 million for the fourth quarter of 2007.

- Segment EBITDA for the fourth quarter of 2008 was $76.7 million as compared to $74.3 million for the fourth quarter of 2007. Segment EBITDA increased $3.0 million related to non-cash purchase accounting adjustments.

- Excluding the impact of the Transactions, Segment EBITDA decreased $0.6 million, or 0.8%, primarily due to higher global marketing and operating costs, partially offset by higher net revenues, lower commissions and lower general and administrative expenses.

Full Year Net Revenues
- Net revenues for 2008 were $1,409.9 million as compared to $1,321.0 million for 2007, reflecting a 6.7% growth rate. Net revenues, excluding the impact of the Transactions, increased $72.9 million, or 5.5% greater than 2007.

- The increase in net revenues was due to growth in both the North American and International regions, with all lines of business posting increases over 2007.

Full Year Operating Results
- The trailing twelve month Adjusted EBITDA of $311.4 million as of the year ended December 31, 2008 reflects an increase of $27.1 million, or 9.5%, from the $284.3 million reported for the year ended December 31, 2007.

- Segment EBITDA for 2008 was $304.6 million as compared to $265.1 million for 2007. Segment EBITDA increased $7.2 million related to non-cash purchase accounting adjustments.

- Excluding the impact of the Transactions, Segment EBITDA increased $32.3 million, or 12.2%, primarily due to higher net revenues, lower commissions and lower general and administrative expenses, partially offset by higher global marketing and operating costs.

Segment Commentary

North America
Membership products revenue increased $14.3 million, or 8.5%, and $28.9 million, or 4.2%, for the fourth quarter and full year, respectively, as higher average revenue per retail member and higher wholesale revenue from programs that were formerly retail were partially offset by slightly lower retail member volumes. Excluding the impact of purchase accounting, net revenue increased $10.2 million and $19.7 million for the fourth quarter and full year, respectively, as annualized revenue per average retail member increased 11.7% and 8.7% in the fourth quarter and full year, respectively. Membership Segment EBITDA increased $9.7 million in the quarter, primarily due to the higher revenues, and $35.1 million for the full year, primarily due to the higher revenues and lower marketing and commission expenses as the Company continued to reduce commissions as a percentage of revenue, partially offset by higher product and servicing costs.

Insurance and Package products revenue increased $3.6 million, or 4.0%, and $9.6 million, or 2.6%, for the fourth quarter and full year, respectively. The revenue growth was primarily due to a lower cost of insurance and growth in the NetGain! checking account enhancement programs, partially offset by decreased package revenue primarily from lower Package member volumes. Insurance and Package Segment EBITDA declined $5.4 million in the fourth quarter and $11.0 million for the year primarily due to increased marketing and commissions, which more than offset the higher net revenues.

Loyalty products revenue increased $3.2 million, or 18.4%, and $14.2 million, or 24.5%, for the fourth quarter and full year, respectively, due to ongoing growth in programs with existing and new clients, including the fee-based revenue related to a recently acquired points redemption program, partially offset by the expiration of certain non-recurring patent revenue. Loyalty Segment EBITDA declined $1.1 million in the fourth quarter as the increase in revenue was more than offset by higher product and servicing costs, and the loss of the patent revenue. Loyalty Segment EBITDA grew $2.9 million in the year due primarily to the increase in revenue, net of higher product and servicing costs.

International

International revenue declined $6.3 million, or 10.1%, over the fourth quarter of 2007, but increased $35.5 million, or 16.2%, for the full year. Excluding the impacts from purchase accounting, revenue decreased 12.4% in the quarter primarily due to the negative impact of the strengthening in the U.S. dollar, which more than offset growth in new retail programs. For the full year, revenue excluding the impacts from purchase accounting increased 13.5% primarily due to new retail memberships and growth in other retail programs, partially offset by the negative impact of the stronger U.S. dollar. Excluding the $12.5 million impact of foreign-exchange in the quarter, fourth quarter revenue would have grown 10.0% over 2007. For the quarter, International Segment EBITDA decreased $0.1 million as compared to the fourth quarter of 2007, due to higher marketing and commissions, and the negative impact of the stronger U.S. dollar. For the year, International Segment EBITDA increased $8.8 million, principally due to the increase in revenue net of higher marketing and commissions, and other costs to support new retail programs, along with $2.4 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 December 31, 2008, Affinion had $302.6 million outstanding under its senior notes (net of discounts and premiums), $655.0 million outstanding under its term loan facility, and $351.9 million outstanding under the senior subordinated notes (net of discounts). Under the Company’s revolving credit facility, $41.2 million is available for borrowing, after giving effect to the issuance of $1.8 million in letters of credit and a $57.0 million outstanding facility balance. The revolving credit facility was primarily drawn in the fourth quarter of 2008 to fund the acquisitions of a European-based loyalty company and a block of insurance business shortly before year-end, in addition to other working capital items.

In addition, at December 31, 2008, Affinion had $36.3 million of unrestricted cash on hand. Separately, Affinion Group, Inc.’s parent company, Affinion Group Holdings, Inc. ("Holdings"), recently made a payment-in-kind election for the interest payment due September 1, 2009, on its $350 million senior unsecured term loan. The election provides that, in lieu of paying cash interest, the interest will be paid by adding such interest to the principal amount of the loan.

Call-In Information
Affinion will hold an informational call to discuss the results for the three and twelve month periods ended December 31, 2008 at 11:00 am (EST) on Thursday, February 26, 2009. 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 84072041. 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 telephonic replay of the call will be available through midnight (EST) March 1, 2009 by dialing 1-800-642-1687 (domestic) or 1-706-645-9291 (international) and entering passcode 84072041.

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 December 31, 2008 and the audited consolidated results of operations for the year ended December 31, 2008, to the unaudited consolidated results of operations for the three month period ended December 31, 2007 and the audited consolidated results of operations for the year ended December 31, 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 December 31, 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 these purchase accounting adjustments on Affinion’s results of operations for the three month period and year ended December 31, 2008 as compared to the three month period and year ended December 31, 2007 was to increase net revenues by $5.7 million and $16.0 million, respectively, and to increase Segment EBITDA by $3.0 million and $7.2 million, respectively.

Download Full Release To See Complete Document

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 2009 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, foreign currency exchange rates, 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, 2008, when filed, and the other periodic reports filed by Affinion with the SEC from time to time.

About Affinion Group
As a global leader with nearly 35 years of experience, Affinion Group (www.affinion.com) enhances the value of its partners' customer relationships by developing and marketing valuable loyalty, membership, checking account, insurance and other compelling 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, and markets in 14 countries globally. Affinion holds the prestigious ISO 27001 certification for the highest information security practices, is PCI compliant and Cybertrust certified. For more company and investor information visit www.affinion.com.

Safe Harbor Statement
"Safe Harbor" Statement under the U.S. Private Securities Litigation Reform Act of 1995: Statements in this press release regarding Affinion Group's business which are not historical facts are "forward-looking statements" that involve risks and uncertainties. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see "Risk Factors" in the Company's Annual Report on Form 10-K for the most recently ended fiscal year and other periodic reports filed with the Securities and Exchange Commission from time to time.