Metris Companies Inc., Household Credit Services Form Marketing Alliance

Business Wire, Nov 21, 1996

MINNEAPOLIS--(BUSINESS WIRE)--Nov. 21, 1996--Metris Companies Inc. (Nasdaq: MTRS), a subsidiary of Fingerhut Companies, Inc. (NYSE:FHT), today announced that it has formed a five-year marketing alliance with Household Credit Services, Inc., a subsidiary of Household International, Inc., to offer credit card registration services to Household's nearly 16 million Visa(R) and MasterCard(R) customers beginning in January 1997.

Through the alliance, Metris will offer customized credit card registration programs that will include notification services for lost or stolen credit cards, emergency cash, car rental discounts, emergency air fare coverage, replacement cards, check protection, theft reward and change of address notification, among other benefits.

"The alliance with Household is significant for Metris in that it demonstrates our commitment to diversify and grow the company through unique offerings for the financial services industry," said Ron Zebeck, Metris president and chief executive officer.

Metris began offering its proprietary card registration product in September, and has since enrolled over one hundred thousand members from its own database of 1.1 million card members. The alliance with Household, the nation's sixth largest credit card issuer, helps position Metris as a premier provider of fee-based enhancement services to a broader audience. Metris is actively pursuing strategic alliances in each of its three major lines of business: consumer credit; extended service plans; and fee-based services.

"We are delighted to be working with Metris," said Warren Wilcox, Household's executive director, planning and marketing.

Metris Companies Inc. is a direct marketer and provider of consumer credit products, such as MasterCard credit card products; extended service plans; and other fee-based products and services. Its subsidiary, Direct Merchants Credit Card Bank, as of Sept. 30, had 1.1 million credit card accounts and $1.3 billion of receivables. In October, the company completed an initial public offering of 3.2 million shares. Fingerhut owns approximately 83 percent of the outstanding shares of Metris.

CONTACT: Lynda Nordeen

Metris Companies Inc.

600 South Hwy. 169

St. Louis Park, MN 55426

612/936-5015