UNDERWRITING AGREEMENT

EXECUTION COPY

DISCOVER CARD MASTER TRUST I

CREDIT CARD PASS-THROUGH CERTIFICATES

TERMS AGREEMENT

Dated: February 21, 2007

Title of Securities :

Discover Card Master Trust I, Series 2007-1 Floating Rate Class A Credit Card Pass-Through Certificates; and

Discover Card Master Trust I, Series 2007-1 Floating Rate Class B Credit Card Pass-Through Certificates.

Initial Principal Amount of Certificates : $1,578,948,000

Series and Class Designation Schedule :

Discover Card Master Trust I, Series 2007-1 $1,500,000,000 Floating Rate Class A Credit Card Pass-Through Certificates; and

Discover Card Master Trust I, Series 2007-1 $78,948,000 Floating Rate Class B Credit Card Pass-Through Certificates.

Series Cut-Off Date : February 1, 2007

Aggregate outstanding balance of Receivables in the Discover Card Master Trust I as of January 31, 2007 : $36,706,862,706.89

Expected Date of Series Supplement : February 28, 2007

Certificate Rate :

Class A:       One-month LIBOR plus 0.01%; and

Class B:       One-month LIBOR plus 0.10% per annum

Time of Sale :

2:15 p.m. New York City time on February 21, 2007.

Time of Sale Information :

(1) Series Term Sheet dated February 20, 2007 relating to the Discover Card Master Trust I, Series 2007-1 (the “ Series Term Sheet ”), attached as Annex 1 hereto, which incorporates by reference (a) the prospectus supplement for Series 2006-3 dated as of September 26, 2006 filed pursuant to Rule 424(b) of the Securities Act of 1933, (b) the static pool information regarding the historical performance of the Receivables for the accounts contained on the internet website http://www.discoverfinancial.com/absdata and (c) the other reports and documents incorporated by reference to the Series Term Sheet and (2) the Pricing Information Schedule.

If, subsequent to the Time of Sale, it is determined that such information included an untrue statement of material fact or omitted to state a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading and the Underwriters have terminated their old purchase contracts and entered into new purchase contracts with purchasers of the Certificates, then “Time of Sale Information” will also include any information that corrects such material misstatements or omissions, together with any other information, to the extent it is made available to purchasers at the time of entry into the last such new purchase contract such that “Time of Sale Information” no longer includes an untrue statement of a material fact or omits to state a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading (“ Corrective Information ”).

Underwriter Information

“Underwriter Information” shall mean the written information furnished to Discover Bank by the Underwriters for use in the Prospectus and set forth in the “blood letter” from the Underwriters to Discover Bank dated the Time of Delivery.

Pricing Information Schedule :

A copy of the Pricing Term Sheet, dated as of February 21, 2007, relating to the Discover Card Master Trust I, Series 2007-1 (the “ Pricing Information Schedule ”), a document prepared by Discover and filed as an issuer free writing prospectus that contains final transaction terms for Discover Card Master Trust I, Series 2007-1, is attached as Annex 2 hereto. The Underwriters shall have delivered the information set

forth on the Pricing Information Schedule to potential investors in the Securities prior to entering into a purchase contract with the investor for the purchase of such Securities.

Terms of Sale :

The purchase price for the Certificates to the Underwriters will be

99.825% of the aggregate principal amount of the Class A Certificates; and
99.800% of the aggregate principal amount of the Class B Certificates.

The Underwriters will offer the Certificates to the public at a price equal to

100% of the aggregate principal amount of the Class A Certificates; and
100% of the aggregate principal amount of the Class B Certificates.

Time of Delivery : 9:00 A.M., Chicago, Illinois Time, on February 28, 2007, or at such other time as may be agreed upon in writing.

Notwithstanding anything in the Agreement or in this Terms Agreement to the contrary, the Agreement and this Terms Agreement constitute the entire agreement and understanding among the parties hereto with respect to the purchase and sale of the Series 2007-1 Certificates. This Terms Agreement may be amended only by written agreement of the parties hereto.

[Terms Agreement]

SCHEDULE I

UNDERWRITERS

$1,500,000,000 Floating Rate Class A Credit Card Pass-Through Certificates, Series 2007-1

$78,948,000 Floating Rate Class B Credit Card Pass-Through Certificates, Series 2007-1

Discover Bank has filed a registration statement, as amended, (including a prospectus) (Registration No. 333-131898) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents Discover Bank has filed with the SEC for complete information about Discover Bank, the issuing trust, and this offering. You may get these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov . Alternatively, Discover Bank, any underwriter or any dealer participating in the offering will arrange to send you the prospectus if you request it by calling toll-free 1-866-718-1649.

SERIES TERM SHEET DATED FEBRUARY 20, 2007

DISCOVER ^® CARD MASTER TRUST I, SERIES 2007-1

$[1,000,000,000] Floating Rate Class A Credit Card Pass-Through Certificates
$ [ 52,632,000] Floating Rate Class B Credit Card Pass-Through Certificates

DISCOVER BANK
Master Servicer, Servicer and Seller

      The certificates represent interests in the Discover Card Master Trust I. The certificates are not obligations of Discover Bank or any of its affiliates, and neither the certificates nor the underlying credit card receivables are insured or guaranteed by any governmental agency . Before you invest, we urge you to read the prospectus supplement for Series 2006-3, filed pursuant to Rule 424(b)(5) of the Securities Act of 1933, as amended, by Discover Bank on September 28 , 2006, which can be accessed at http://www.sec.gov/Archives/edgar/data/894327/000095013706010471/c08587b5e424b5.htm . You should also read the static pool data of Discover Card Master Trust I which can be accessed at http://www.discoverfinancial.com/absdata . The prospectus supplement for Series 2006-3 and the static pool data for Discover Card Master Trust I are considered to be part of this series term sheet. Series 2007-1 will not be comprised of any subseries. The economic terms set forth in this series term sheet and any information in this series term sheet that is later than or inconsistent with the information in the prospectus and prospectus supplement for Series 2006-3 supersede the economic terms and such information in the prospectus and prospectus supplement for Series 2006-3.

      The SEC allows us to incorporate by reference information we file with it, which means that we can disclose important information to you by referring you to those documents. We are incorporating by reference the Registration Statement on Form S-3, as amended, Registration No. 333-131898, filed by Discover Bank and the trust for the offering to which this communication relates. In addition, we incorporate by reference to this term sheet the following reports and documents filed by Discover Bank on behalf of the trust pursuant to Section 13(a), 13(c), 14 or 15(d) of the Securities Exchange Act of 1934, as amended:

      (1) the trust’s Annual Report on Form 10-K for the year ended November 30, 2006;

      (2) the trust’s Monthly Reports on Form 10-D filed since November 30, 2006; and

      (3) the trust’s Current Reports on Form 8-K filed since November 30, 2006.

      You may get these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov . We file reports with the SEC under the name Discover Card Master Trust I, Commission file number 000-23108. The information incorporated by reference is considered to be part of this series term sheet. As a recipient of this series term sheet, you may request a copy of any document we incorporate by reference, except exhibits to the documents, unless the exhibits are specifically incorporated by reference, at no cost, by calling Discover Bank, as master servicer, at (302) 323-7434.

      We have prepared this series term sheet solely for informational purposes. Discover Bank may not offer or sell the certificates in any state where the offer or sale is prohibited. The underwriters may hold or trade securities of the trust or Discover Bank and may also perform investment banking services for the trust and Discover Bank.

MORGAN STANLEY
                               ABN AMRO INCORPORATED
                                                                       CITIGROUP
                                                                                              DEUTSCHE BANK
                                                                                                                       JPMORGAN
                                                                                                                                                RBC CAPITAL MARKETS

      This free writing prospectus does not contain all information that is required to be included in the prospectus and prospectus supplement.

      The information in this series term sheet will be superseded in its entirety by any similar information for Series 2007-1 we may subsequently provide prior to the Time of Sale, as defined below. The Time of Sale is expected to be at or around [___] P.M. New York City time on February [21], 2007 (the “Time of Sale”), the time at which the Terms Agreement for Series 2007-1 is expected to be executed among Discover Bank and the underwriters for Series 2007-1 (the “Terms Agreement”) and commitments to purchase certificates are expected first to be made.

      This series term sheet may not be distributed to Private Customers as defined by the U.K. Securities and Futures Authority.

IMPORTANT NOTICE REGARDING THE CONDITIONS FOR THIS OFFERING OF ASSET-BACKED SECURITIES

      The asset-backed securities referred to in these materials are being offered when, as and if issued. In particular, you are advised that asset-backed securities, and the asset pools backing them, are subject to modification or revision (including, among other things, the possibility that one or more classes of securities may be split, combined or eliminated), at any time prior to issuance or availability of a final prospectus. As a result, you may commit to purchase securities that have characteristics that may change, and you are advised that all or a portion of the securities may not be issued that have the characteristics described in these materials. Our obligation to sell securities to you is conditioned on the securities and the underlying transaction having the characteristics described in these materials. If we determine that condition is not satisfied in any material respect, we will notify you, and neither the issuer nor the underwriter will have any obligation to you to deliver all or any portion of the securities which you have committed to purchase, and there will be no liability between us as a consequence of the non-delivery.

IMPORTANT INFORMATION AND IRS CIRCULAR 230 NOTICE

      This material has been prepared for information purposes to support the promotion or marketing of the transaction or matters addressed herein. This is not a research report and was not prepared by the Morgan Stanley research department. It was prepared by Discover Bank or Morgan Stanley sales, trading, banking, or other non-research personnel. This material was not intended or written to be used, and it cannot be used by any taxpayer, for the purpose of avoiding penalties that may be imposed on the taxpayer under U.S. federal tax laws. Each taxpayer should seek advice based on the taxpayer’s particular circumstances from an independent tax advisor. Past performance is not necessarily a guide to future performance. Please see additional important information and qualifications at the end of this material.

IMPORTANT NOTICE RELATING TO AUTOMATICALLY GENERATED EMAIL DISCLAIMERS

      ANY LEGENDS, DISCLAIMERS OR OTHER NOTICES THAT MAY APPEAR IN OR AT THE BOTTOM OF THE EMAIL COMMUNICATION TO WHICH THIS MATERIAL IS ATTACHED ARE NOT APPLICABLE TO THESE MATERIALS AND SHOULD BE DISREGARDED. SUCH LEGENDS, DISCLAIMERS OR OTHER NOTICES HAVE BEEN AUTOMATICALLY GENERATED AS A RESULT OF THESE MATERIALS HAVING BEEN SENT VIA BLOOMBERG OR ANOTHER EMAIL SYSTEM.

This material was not prepared by the Morgan Stanley research department. Please refer to important information and qualifications at the end of this material.

This material was not prepared by the Morgan Stanley research department. Please refer to important information and qualifications at the end of this material.

This material was not prepared by the Morgan Stanley research department. Please refer to important information and qualifications at the end of this material.

This material was not prepared by the Morgan Stanley research department. Please refer to important information and qualifications at the end of this material.

This material was not prepared by the Morgan Stanley research department. Please refer to important information and qualifications at the end of this material.

This material was not prepared by the Morgan Stanley research department. Please refer to important information and qualifications at the end of this material.

COMPOSITION AND HISTORICAL PERFORMANCE OF THE ACCOUNTS

     We have set forth information below about the Accounts that are part of the trust. To the extent applicable, Account information dated as of January 31, 2007, includes the Discover Card accounts originated by Discover Bank which were added to the Trust as of February 1, 2007 (the “Additional Accounts”). For further information regarding the addition of these accounts to the Trust, refer to the 8-K filed on behalf of the Trust on February 6, 2007.

      Geographic Distribution. The Accounts that are part of the trust are not highly concentrated geographically. As of January 31, 2007, the following nine states had the largest Receivables balances and comprised over 50% of the Receivables:

     Since the largest amounts of outstanding Receivables were with cardholders whose billing addresses were in California, Texas, New York, Florida, Illinois, Pennsylvania, Ohio, Michigan and New Jersey, adverse changes in the business or economic conditions in these states could have an adverse effect on the performance of the Receivables.

      Credit Limit Information. As of January 31, 2007, the Accounts had the following credit limits:

     The average credit limit as of January 31, 2007 was $8,867.

This material was not prepared by the Morgan Stanley research department. Please refer to important information and qualifications at the end of this material.

      Account Balance Information . As of January 31, 2007, the Accounts had the following balances:

The average account balance as of January 31, 2007 was $2,443 (using 15,023,009 active Accounts for which cardmembers had a balance, a monetary transaction or an authorization within the past month).

      Seasoning. As of January 31, 2007, 95.0% of the Accounts were at least 24 months old. The ages of the Accounts as of January 31, 2007 were distributed as follows:

      Delinquency Information. The Accounts in the trust have had the following delinquency statuses:

This material was not prepared by the Morgan Stanley research department. Please refer to important information and qualifications at the end of this material.