Discover Prices Debt Offering of Discover Bank

Discover Financial Services Announces Pricing of Subordinated Debt Offering of Discover Bank

RIVERWOODS, Ill.--(BUSINESS WIRE)--Discover Financial Services (NYSE:DFS) yesterday announced the pricing of an offering of $500 million of 7.00% Discover Bank subordinated notes due April 2020. The offering is expected to close on April 15, 2010. Discover Bank will receive estimated net proceeds from the offering of approximately $492 million, which will be used to increase Discover Bank’s Tier 2 capital and for general corporate purposes. Barclays Capital Inc., Goldman, Sachs & Co. and J.P. Morgan Securities Inc. are acting as joint book-running managers for the subordinated debt offering.

“Management’s Discussion and Analysis of Financial Condition and Results of Operations”

This press release does not constitute an offer to sell or a solicitation of an offer to buy any securities, nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About Discover

Discover Financial Services (NYSE: DFS) is a direct banking and payment services company with one of the most recognized brands in U.S. financial services. Since its inception in 1986, the company has become one of the largest card issuers in the United States. The company operates the Discover card, America's cash rewards pioneer, and offers personal and student loans, online savings accounts, certificates of deposit and money market accounts through its Discover Bank subsidiary. Its payment businesses consist of Discover Network, with millions of merchant and cash access locations; PULSE, one of the nation's leading ATM/debit networks; and Diners Club International, a global payments network with acceptance in more than 185 countries and territories.