Fitch Places Metris ABS Seller/Servicer Ratings on Rating Watch Positive

Business Wire, August 5, 2005

NEW YORK -- Fitch Ratings has placed Direct Merchants Credit Card Bank, N.A. (DMCCB) and its parent, Metris Companies Inc. (NYSE:MXT) (collectively, Metris) a combined ABPS/S3-minus (Full Approval) ABS seller/servicer rating on Rating Watch Positive for credit card origination and servicing.

The Rating Watch Positive status reflects the potential improvement in the financial condition component of Metris' seller/servicer rating following HSBC Finance Corporation's announced acquisition of Metris Companies Inc. (parent of DMCCB). Fitch's Financial Institutions Group has affirmed HSBC Finance Corporation's 'AA-' rating and has placed Metris' 'B-' rating on Rating Watch Positive pending the acquisition. Fitch anticipates that upon completion of the acquisition in fourth-quarter 2005, Metris' seller/servicer rating would be upgraded by one notch or more depending on the level of integration with HSBC's card operations, and other factors.

Fitch rates ABS seller/servicers on a scale of 1 to 5, with 1 (no '1 plus') being the highest rating. Within each of these rating levels, Fitch further differentiates ratings by plus ( ) and minus (-) as well as the flat rating. For further information about Fitch ABS seller/servicer ratings, refer to the report titled 'ABS Seller/Servicer Rating: Credit Where Credit Is Due,' dated Sept. 14, 2004, and 'ABS Seller/Servicer Rating: Credit Card Addendum,' dated Dec. 4, 2004, both of which are available on the Fitch Ratings web site at www.fitchratings.com.

Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures are also available from the 'Code of Conduct' section of this site.