Metris Companies to Issue New Credit Card on Discover Network

Metris Companies Inc. and Discover Financial Services LLC, a business unit of Morgan Stanley, announced today that they have signed a definitive agreement under which Metris will launch a new credit card on the Discover® Network.

Metris is the 11th-largest bankcard issuer in the U.S. and another major card issuer to begin issuing credit cards on the Discover Network in the past year. The card will be issued by Metris subsidiary Direct Merchants Credit Card Bank, N.A. It is anticipated that the card will be available to customers by the end of 2005.

“We are excited about this partnership and believe this new credit card offering on the Discover Network will resonate with our middle-market prospect universe,” said Matt Melius, executive vice president of Metris and president of Direct Merchants Bank. “We believe this kind of brand diversification is another positive step toward fulfilling our company’s growth plans.”

“Metris is a prominent provider of consumer credit to consumers in the U.S. and we are pleased to partner with them,” said Harit Talwar, executive vice president of Discover Financial Services LLC. “This agreement is an important step forward in Discover Network’s strategy of supporting multiple issuers and products while bringing choice and value to merchants, issuers and consumers.”