2008 Holiday Season and Network Branded Gift Cards A Survey of American Consumers November 1, 2008

Objectives Expectations for holiday season regarding budgets and shopping (trends in spending, as well as items of interest) Intent regarding network branded gift cards specifically Significance of key benefits offered by network branded gift cards tailored to value, flexibility and control in these difficult economic times 2 2

Methodology Flash poll, with 10 total questions Survey of 1,000 adults Conducted online from October 22-28, 2008 Margin of error is +3.1% at the 95% confidence level Conducted by Kupersmit Research of Denver, CO 3

Thinking about the upcoming holiday season, which of these statements apply to you? (Please check ALL that apply) Spending Plans One-half plan to spend less this holiday season One-in-five plan to give fewer gifts, spend less per gift and give more ‘practical’ gifts than usual Nearly one-third (29%) say they do not plan to change much this year 4

How concerned are you about your budget for the holiday season this year? Holiday Budgets One-half are “extremely” or “very” concerned, while another 32% is “somewhat concerned about their budget for the holiday season 5

Trend watchers have already begun to tell us about gift items projected to be big sellers this holiday season. Which of the following are you likely to include in your holiday shopping list? Please check ALL that apply: Spending Plans One-in-five (17%) say they are planning to buy network branded gift cards, while 45% say as such regarding retail gift cards One-half report they are planning on buying “practical” gifts like clothes, 35% say “CDs, DVDs, and video games” and 22% say “handmade” items Less than 1 in 10 are planning on “splurge” or luxury items, smartphones, HDTVs or Blu-Ray players 6

Have you ever GIVEN or RECEIVED a branded gift card with a logo like American Express, Discover, MasterCard or Visa that can be used virtually anywhere these cards are accepted for payment? (Please choose one) Network Branded Gift Cards More than half (56%) report they have given or received a network branded gift card, including nearly 1 in 5 who say they have received, but never given, a network branded gift card 7

Thinking about the number of branded gift cards you usually give during the holidays (versus other types of gifts), do you plan to give more branded gift cards this holiday season than usual, the same number or less? Network Branded Gift Cards Among the 37% who have given cards in the past, a solid majority (60%) plan to give the same number or more than usual, while one- quarter (22%) say they plan to give fewer cards this year 8

The following are some benefits regarding branded gift cards (which carry a logo like American Express, Discover, MasterCard or Visa). For each statement, please indicate how significant you find this benefit. Benefits: Value, Flexibility, Control With a branded gift card, your friends and family decide when they are going to use the card, so they can wait until the after- season sales, or can spend on various smaller items, so they can get the most value from their gift A branded gift card gives your family and friends flexibility in these difficult economic times – so if they choose, they can use the card to splurge and get something fun like a massage or nice dinner; or, they can choose to use your gift however they need Giving branded gift cards makes it easier to stay on a budget in the hectic holiday season, because you can plan ahead with specific amounts to spend on the people on your list Upwards of 60% of consumers believe the benefits around value and flexibility (in these economic times) are “extremely” or “very” significant; 51% say as such regarding being able to control their holiday spending 9

Benefits: Offers, Savings Often, branded gift cards come with offers and discounts your friends and family can take advantage of when they go to buy whatever they want Giving branded gift cards saves money on gas because you can buy them all online, or at a bank branch or a gift card mall location The following are some benefits regarding branded gift cards (which carry a logo like American Express, Discover, MasterCard or Visa). For each statement, please indicate how significant you find this benefit. Nearly a majority (47%) say that the offers or discounts which accompany network branded gift cards are an “extremely” or “very” significant benefit Slightly fewer consumers (43%) find the specific savings on gas that can be had by purchasing a network branded gift card to be highly significant 10

Conclusions Strain on holiday budgets is quite clear, as is movement away from luxury items and toward more ‘practical’ gifts High levels of interest in network branded gift cards specifically around messages related to value, flexibility and control in challenging economic times implies clear opportunities for education Message should reflect Americans’ determination to have a real, meaningful holiday season; giving practical gifts reflects the times we are in, but in no way diminishes the core values (family, giving, etc.) of the season 11

Profile Gender –Female53% –Male47 Income –<$20,00012% –$20,000-$34,99920 –$35,000-$49,99915 –$50,000-$74,99921 –$75,000-$99,99915 –$100,000-$124,9996 –$125,000+4 Age –18-248% – – – – –