Metris Issues $500 Million in Securities Backed by Credit Card Receivables

Metris Companies Inc. announced today that Metris Receivables, Inc., its wholly owned subsidiary, will issue $500 million of two-year credit card asset-backed securities through the Metris Master Trust. The securitization transaction features three classes of publicly issued securities (Class A, Class M, Class B) and one privately issued class of notes (Class C).

In addition, there is a Double B rated Class D note of $39.4 million that is being retained by the Company.

“We are very pleased with this transaction, which stands as the tightest pricing transaction in our history,” said Metris Treasurer Scott Fjellman.

“We were especially pleased that the improved portfolio and financial performance of the Company helped lower the overall credit enhancement level by 350 basis points,” said Jeff Blaschko, Director of Treasury Operations.

A copy of the prospectus for the publicly offered securities can be obtained by contacting: Metris Receivables, Inc., 10900 Wayzata Blvd., Room 723, Minnetonka, MN 55305, (952) 417-5645, or through the SEC Internet site (http://www.sec.gov). The Class C and Class D securities have not been registered with the Securities and Exchange Commission or any state securities commission and may not be offered or sold except pursuant to an exemption from registration under the Securities Act of 1933. This announcement is not an offer to sell or the solicitation of an offer to buy the Class C or Class D securities.