Metris Issues $544 Million In Securities Backed By Credit Card Receivables

MINNETONKA, MN – Metris Companies Inc. (NYSE: MXT) announced today that Metris Receivables, Inc., its wholly owned subsidiary, will issue $544.35 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 two privately issued classes (Class C, Class D).

“This transaction was very well received by the ABS market,” said John Armbruster, Assistant Treasurer of Metris. “The strong demand for our paper continues to enable us to achieve broad distribution among investors with cost-effective funding, which was a weighted spread of 39 basis points over LIBOR. In addition, this transaction includes Double B-rated Notes as a subordinate class without a cash reserve account, which is a more efficient structure than our last deal.”

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.

Metris Companies Inc., based in Minnetonka, Minn., is one of the largest bankcard issuers in the United States. The company issues credit cards through Direct Merchants Credit Card Bank, N.A., a wholly owned subsidiary headquartered in Phoenix, Ariz. For more information, visit www.metriscompanies.com or www.directmerchantsbank.com.