Exhibit 99.1
                     RISK FACTORS AND CAUTIONARY STATEMENTS

When used in this Form 10-K and in future filings by the Company with the
Securities and Exchange Commission, in the Company's press releases and in oral
statements made with the approval of an authorized executive officer, the words
or phrases "should result," "are expected to," "will continue," "will
approximate," "is anticipated," "estimate," "project" or similar expressions are
intended to identify "forward-looking statements" within the meaning of the
Private Securities Litigation Reform Act of 1995. These statements are
necessarily subject to certain risks and uncertainties, including those
discussed below, that could cause actual results to differ materially from the
Company's historical experience and its present expectations or projections.
Caution should be taken not to place undue reliance on any such forward-looking
statements, which speak only as of the date made. The factors listed below could
affect the Company's financial performance and could cause the Company's actual
results for future periods to differ from any opinions or statements expressed
with respect thereto. Such differences could be material and adverse.

The Company will not undertake and specifically declines any obligation to
publicly release the result of any revisions which may be made to any
forward-looking statements to reflect events or circumstances occurring after
the date of such statements or to reflect the occurrence of anticipated or
unanticipated events. This Exhibit 99.2 supersedes and replaces the discussions
in Item 5 of the Company's Quarterly Reports on Form 10-Q for the quarters ended
June 30, 1996 and September 30, 1996. Capitalized terms used without definition
herein have the meanings assigned to such terms in the Annual Report on Form
10-K of which this Exhibit is a part.

Timing and Amount of Anticipated Cost Reductions. With regard to the results of
the Company's ongoing cost reduction efforts, there can be no assurance that the
anticipated $150 million of annualized pre-tax cost savings will be fully
realized or will be achieved within the time periods expected. The
implementation of the printing plant closures is, in large part, dependent upon
the successful development of the software needed to streamline the check
ordering process and redistribute the resultant order flow among the Company's
remaining printing plants. Because of the complexities inherent in and the
lengthy testing periods associated with the development of software products as
sophisticated as those needed to accomplish this task, there can be no assurance
that unanticipated development delays will not occur. Any such occurrence could
adversely affect the planned consolidation of the Company's printing facilities
and delay the realization or reduce the amount of the anticipated expense
reductions. The Company may defer one or more plant closings previously
scheduled for 1997 into the first half of 1998.

In addition, the achievement of the expected level of cost savings is dependent
upon the successful execution of a variety of other cost reduction strategies.
These additional efforts include the consolidation of the Company's purchasing
process, the disposition of unprofitable or low-margin businesses and other
efforts. The optimum means of actualizing many of these strategies is, in some
cases, still being evaluated by the Company. Unexpected delays, complicating
factors and other hindrances are common in these types of endeavors and can
arise from a variety of sources, some of which are likely to have been
unanticipated. A failure to timely achieve one or more of the Company's primary
cost reduction objectives could materially reduce the benefit to the Company of
its cost savings programs and strategies or substantially delay the full
realization of their expected benefits.

Further, there can be no assurance that increased expenses attributable to other
areas of the Company's operations or to increases in raw material, labor,
equipment or other costs will not offset some or all of the savings expected to
be achieved through the cost reduction efforts. Competitive pressures and other
market factors may also require the Company to share the benefit of some or all
of any savings with its customers or otherwise adversely affect the prices it
receives or the market for its products. As a result, even if the expected cost
reductions are fully achieved in a timely manner, such reductions are not likely
to be fully reflected by commensurate gains in the Company's net income, cash
position, dividend rate or the price of its Common Stock.

Effect of Financial Institution Consolidation. There is an ongoing trend towards
increasing consolidation within the banking industry that has resulted in
increased competition and pressure on check prices. This concentration greatly
increases the importance to the Company of retaining its major customers and
attracting significant additional customers in an increasingly competitive
environment. Although the Company devotes considerable efforts towards the
development of a competitively priced, high quality suite of products for the
financial services industry, there can be no assurance that significant
customers will not be lost nor that any such loss can be counterbalanced through
the addition of new customers or by expanded sales to the Company's remaining
customers.

Raw Materials and Postage Costs. Increases in the price of paper and the cost of
postage can adversely affect the profitability of the Company's printing and
mail order businesses. Competitive pressures and overall trends in the
marketplace may have the effect of inhibiting the Company's ability to reflect
increased costs of production in the retail prices of its products.

Competition. Although the Company believes it is the leading check printer in
the United States, it faces considerable competition from other smaller
companies in both its traditional marketing channel to financial institutions
and from direct mail marketers of checks. From time to time, one or more of
these competitors reduce the price of their products in an attempt to gain
market share. The corresponding pricing pressure placed on the Company has
resulted in reduced profit margins in the past and there can be no assurance
that similar pressures will not be exerted in the future.

Check printing is, and is expected to continue to be, an essential part of the
Company's business and the principal source of its operating income for at least
the next several years. A wide variety of alternative payment delivery systems,
including credit cards, debit cards, smart cards, ATM machines, direct deposit
and bill paying services, home banking applications and Internet-based retail
services, are in various stages of development and additional systems will
likely be introduced. Although the Company expects that there will continue to
be a substantial market for checks for the foreseeable future, the rate and the
extent to which these alternative systems will achieve consumer acceptance and
replace checks cannot be predicted. The creation of these alternative payment
methodologies has also resulted in an increased interest in transaction
processing as a source of revenue, which has led to increased competition for
DEPS.

A surge in the popularity of any of these alternative payment methods could have
a material, adverse effect on the demand for the Company's primary products and
its account verification, payment protection and collection services. In
addition, the publicity generated by the promoters of these systems and the
attendant media coverage of their development and introduction may have a
depressing effect on the market price of the Company's Common Stock that is
disproportionate to their actual competitive impact.

Seasonality. A significant portion of the revenues and earnings of the Company's
Deluxe Direct market serving unit is dependent upon its results of operations
during the fourth quarter season. As a result, the results reported for this
segment during the first three quarters of any given year are not necessarily
indicative of those which may be expected for the entire year.

Earnings Estimates. From time to time, authorized representatives of the Company
may comment on the perceived reasonableness of published reports by independent
analysts regarding the Company's projected future performance. Such comments
should not be interpreted as an endorsement or adoption of any given estimate or
range of estimates or the assumptions and methodologies upon which such
estimates are based. Generally speaking, the Company does not make public its
own internal projections, budgets or estimates. Undue reliance should not be
placed on any comments regarding the conformity, or lack thereof, of any
independent estimates with the Company's own present expectations regarding its
future results of operations.

The methodologies employed by the Company in arriving at its own internal
projections and the approaches taken by independent analysts in making their
estimates are likely different in many significant respects. Although the
Company may presently perceive a given estimate to be reasonable, changes in the
Company's business, market conditions or the general economic climate may have
varying effects on the results obtained through the use of differing analyses
and assumptions. The Company expressly disclaims any continuing responsibility
to advise analysts or the public markets of its view regarding the current
accuracy of the published estimates of outside analysts. Persons relying on such
estimates should pursue their own independent investigation and analysis of
their accuracy and the reasonableness of the assumptions for which they are
based.

From time to time, the authorized representatives of the Company may make
predictions or forecasts regarding the Company's future results, including
estimated earnings or earning from operations. Any forecast regarding the
Company's future performance reflects various assumptions. These assumptions are
subject to significant uncertainties and, as a matter of course, many of them
will prove to be incorrect. Further, the achievement of any forecast depends on
numerous factors, many of which are beyond the Company's control. As a result,
there can be no assurance that the Company's performance will be consistent with
any management forecasts and the variation from such forecasts may be material
and adverse. Investors are cautioned not to base their entire analysis of the
Company's business and prospects upon isolated predictions, but instead are
encouraged to utilize the entire available mix of historical and forward-looking
information made available by the Company and other information affecting the
Company and its products when evaluating the Company's prospective results of
operations.

HCL Joint Venture. Although the Company has reached an agreement in principle to
form a joint venture with HCL, a number of ancillary agreements have not yet
been finalized and several conditions precedent to the formation of the joint
venture have not yet been fulfilled. Accordingly, the joint venture has not yet
commenced operations. Transactions of this type are typically complex and
difficult to structure, and the level of complexity is heightened when, as is
the case with HCL, the joint venture involves foreign persons and/or entities.
Significant, unforeseen issues may arise that could delay, or prevent
altogether, the formal creation of the joint venture. 

Moreover, even if the joint venture successfully commences operations, there can
be no assurance that its proposed software and transaction processing products
and software development services will achieve market acceptance in either the
United States or India. In addition, the Company has no operational experience
in India and only limited international exposure to date. Operations in foreign
countries are subject to numerous potential obstacles including, among other
things, cultural differences, political unrest, export controls, governmental
interference or regulation (both domestic and foreign), currency fluctuations,
personnel issues and varying competitive conditions. There can be no assurance
that one or more of these factors, or additional causes or influences, many of
which are likely to have been unanticipated and beyond the ability of the
Company to control, may not operate to inhibit the success of the venture. As a
result, there can be no assurance that, even if it commences active operations,
the HCL joint venture will generate significant revenues or profits or provide
an adequate return on any investment by the Company.

Sales of Businesses. The Company indicated its intention to divest the
businesses comprising its Deluxe Direct MSU, but it has not reached agreement
with any prospective buyers. As a result, the possibility exists that the
Company will not identify a suitable buyer or receive an acceptable price for
the entities to be divested. A failure to identify an appropriate buyer and/or
reach an acceptable purchase price would materially delay the anticipated sales
and could result in further write-offs by the Company, some of which could be
significant. In addition, a delay in the execution of these sales could cause
the Company to incur continued operating losses from the businesses sought to be
divested, or make unanticipated investments in those businesses, and would
postpone the receipt and use by the Company of the proceeds expected to be
generated thereby.