Deluxe Expects Second QuarterLosses

ST. PAUL, Minn. - (07/05/06) -- Deluxe Corp., the nation's biggestcheck printer, said it expects to report a loss of as much as $13million for its fiscal second quarter, due to a $45 million chargefor discontinuation of a software project aimed at simplifying thecompany's billing and pricing systems. Second quarter projectionswill also reflect poor performances in all of the company'sbusiness segments and an initiative to improve cost structures. Thecompany was investing in a project to replace major portions of itsexisting order capture, billing and pricing systems within theFinancial Services segment and a portion of the Small BusinessServices segment, but business complexities have led to costoverruns and project delays, causing the cancellation of theproject.