EXHIBIT 99.1 CAUTIONARY STATEMENTS & RISK FACTORS

Exhibit 99.1


CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

The Private Securities Litigation Reform Act of 1995 ("the Reform Act")
provides a "safe harbor" for forward-looking statements to encourage companies
to provide prospective information. The Company is filing this cautionary
statement in connection with the Reform Act. When used in this Annual Report on
Form 10-K, the Company's Annual Report to Shareholders, in future filings by the
Company with the Securities and Exchange Commission ("the Commission"), in the
Company's press releases and in oral statements made by the Company's
representatives, the words or phrases "should result," "believe", "intend",
"plan", "are expected to," "targeted," "will continue," "will approximate," "is
anticipated," "estimate," "project" or similar expressions are intended to
identify forward-looking statements within the meaning of the Reform Act.

The Company wishes to caution you that any forward-looking statements made
by or on its behalf are subject to uncertainties and other factors that could
cause such statements to be wrong. Some of these uncertainties and other factors
are listed under the caption "Risk Factors" below (many of which have been
discussed in prior filings with the Commission). Though the Company has
attempted to list comprehensively these important factors, the Company wishes to
caution investors that other factors may prove to be important in affecting
future operating results. New factors emerge from time to time, and it is not
possible for the Company to predict all of these factors, nor can the Company
assess the impact each factor or combination of factors may have on its
business.

You are further cautioned not to place undue reliance on those
forward-looking statements because they speak only of the Company's views as of
the date the statements were made. The Company undertakes no obligation to
publicly update or revise any forward-looking statements, whether as a result of
new information, future events or otherwise.


RISK FACTORS

THE PAPER CHECK INDUSTRY OVERALL IS A MATURE INDUSTRY AND IF THE INDUSTRY
DECLINES FASTER THAN EXPECTED, THE COMPANY'S BUSINESS COULD BE HARMED.

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. The
Company primarily sells checks for personal and small business use and believes
that there will continue to be a substantial demand for these checks for the
foreseeable future. However, according to Company estimates, growth in total
checks written by individuals and small businesses was flat in 2000 compared to
1999, and the total number of personal, business and government checks written
in the United States has been in decline since 1997. The Company believes that
checks written by individuals and small businesses will eventually decline due
to the increasing use of alternative payment methods, including credit cards,
debit cards, smart cards, automated teller machines, direct deposit, electronic
and other bill paying services, home banking applications and Internet-based
payment services. However, the rate and the extent to which alternative payment
methods will achieve consumer acceptance and replace checks cannot be predicted
with certainty. A surge in the popularity of any of these alternative payment
methods could have a material, adverse effect on the demand for checks and a
material, adverse effect on the Company's business, results of operations and
prospects.

THE COMPANY FACES INTENSE COMPETITION IN ALL AREAS OF ITS BUSINESS.

Although the Company believes it is the leading check printer in the United
States, it faces considerable competition. In addition to competition from
alternative payment systems, the Company also faces considerable competition
from other check printers in its traditional sales channel through financial
institutions, from direct mail sellers of checks and from sellers of business
checks and forms. Additionally, the Company faces competition from check
printing software vendors, and increasingly, from Internet-based sellers of
checks to individuals and small businesses. From time to time, some of the
Company's competitors have reduced the prices of their products in an attempt to
gain volume. The corresponding pricing pressure placed on the Company has
resulted in reduced profit margins for the Company in the past and similar
pressures can reasonably be expected in the future. The Company cannot assure
you that it will be able to compete effectively against current and future
competitors. Continued competition could result in price reductions, reduced
margins and loss of customers.



CONSOLIDATION AMONG FINANCIAL INSTITUTIONS MAY ADVERSELY AFFECT THE
COMPANY'S ABILITY TO SELL ITS PRODUCTS.

Financial institutions have been undergoing large-scale consolidation,
causing the number of financial institutions to decline. Margin pressures arise
from this consolidation when merged entities seek not only the most favorable
prices formerly offered to the predecessor institutions, but also additional
discounts due to the greater volume represented by the combined entity. 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 and services for the financial services industry, there can be no
assurance that significant customers will not be lost or that any such loss can
be counterbalanced through the addition of new customers or by expanded sales to
the Company's remaining customers.

FORECASTS INVOLVING FUTURE RESULTS REFLECT VARIOUS ASSUMPTIONS THAT MAY
PROVE TO BE INCORRECT.

From time to time, representatives of the Company make predictions or
forecasts regarding the Company's future results, including but not limited to,
forecasts regarding estimated revenues, earnings or earnings per share. Any
forecast regarding the Company's future performance reflects various assumptions
which are subject to significant uncertainties, and, as a matter of course, may
prove to be incorrect. Further, the achievement of any forecast depends on
numerous factors which are beyond the Company's control. As a result, the
Company cannot assure you that its performance will be consistent with any
management forecasts or that the variation from such forecasts will not be
material and adverse. You are cautioned not to base your entire analysis of the
Company's business and prospects upon isolated predictions, and are encouraged
to use the entire available mix of historical and forward-looking information
made available by the Company, and other information affecting the Company and
its products and services, including the risk factors discussed in this Exhibit
99.

In addition, representatives of the Company may occasionally comment
publicly 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. 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. The
Company expressly disclaims any responsibility to advise analysts or the public
markets of its view regarding the current accuracy of the published estimates of
outside analysts. If you are relying on these estimates, you should pursue your
own independent investigation and analysis of their accuracy and the
reasonableness of the assumptions on which they are based.

UNCERTAINTIES EXIST REGARDING THE COMPANY'S SHARE REPURCHASE PROGRAM.

In January 2001, the Company announced that its board of directors had
approved the repurchase of up to 14 million shares of its common stock. The
Company has also indicated that it expects to complete these purchases over 12
to 18 months. Stock repurchase activities are subject to certain pricing
restrictions, stock market forces, management discretion and various regulatory
requirements. As a result, there can be no assurance as to the timing and/or
amount of shares that the Company may repurchase under this share repurchase
program.

THE COMPANY'S STRATEGIC INITIATIVES MAY COST MORE THAN ANTICIPATED AND MAY
NOT BE SUCCESSFUL.

The Company is developing and evaluating plans and launching initiatives
for future growth, including the development of additional products and services
and the expansion of Internet commerce capabilities. These plans and initiatives
will involve increased levels of investment. There can be no assurance that the
amount of this investment will not exceed the Company's expectations and result
in materially increased levels of expense.

The new products and services developed by the Company may not meet
acceptance in the marketplace. Also, Internet commerce initiatives involve new
technologies and business methods and serve new or developing markets. There is
no assurance that these initiatives will achieve targeted revenue, profit or
cash flow levels or result in positive returns on the Company's investment.
Internet commerce is also a relatively recent phenomenon and may not continue to
expand as a medium of commerce.



THE SPIN-OFF OF eFUNDS CORPORATION MAY NOT RESULT IN INCREASED SHAREHOLDER
VALUE.

In December 2000, the Company completed the spin-off of eFunds Corporation
(eFunds). On December 29, 2000, the Company distributed its 40 million shares of
eFunds stock, representing 87.9% of eFunds' then total outstanding shares, to
all Company shareholders of record on December 11, 2000. Each shareholder
received .5514 eFunds share for each Deluxe share owned. Cash was issued in lieu
of fractional shares. There can be no assurance that the separation of the
Company and eFunds will result in increased value to the Company's shareholders
in the long-term for many reasons or that the separation will achieve the
desired levels of efficiency or cost savings in the Company's operations.

THE COMPANY MAY EXPERIENCE SOFTWARE DEFECTS THAT COULD HARM ITS BUSINESS
AND REPUTATION.

The Company uses sophisticated software and computing systems. The Company
may experience difficulties in installing or integrating its technologies on
platforms used by its customers or in new environments, such as the Internet.
Errors or delays in the processing of check orders or other difficulties could
result in lost customers, delay in market acceptance, additional development
costs, diversion of technical and other resources, negative publicity or
exposure to liability claims.

THE COMPANY FACES UNCERTAINTY WITH RESPECT TO FUTURE ACQUISITIONS.

The Company has acquired complementary businesses in the past as part of
its business strategy and may pursue acquisitions of complementary businesses in
the future. The Company cannot predict whether suitable acquisition candidates
can be acquired on acceptable terms or whether any acquired products,
technologies or businesses will contribute to its revenues or earnings to any
material extent. A significant acquisition could result in the potentially
dilutive issuance of equity securities, the incurrence of contingent liabilities
or debt, or additional amortization expense relating to goodwill and other
intangible assets, and thus, could adversely affect the Company's business,
results of operations and financial condition. Additionally, the success of any
acquisition would depend upon the Company's ability to effectively integrate the
acquired businesses into the Company. The process of integrating acquired
businesses may involve numerous risks, including among others, difficulties in
assimilating operations and products, diversion of management's attention from
other business concerns, risks of operating businesses in which the Company has
limited or no direct prior experience, potential loss of key employees of
acquired businesses or of the Company, potential exposure to unknown liabilities
and possible loss of customers of the Company or of the acquired businesses.

THE COMPANY FACES RESTRICTIONS ON ITS ABILITY TO ACQUIRE OR ISSUE COMPANY
SHARES.

Under Section 355(e) of the Internal Revenue Code, the spin-off of eFunds
could be taxable to the Company if 50% or more of the Company's shares are
acquired as part of a plan or series of transactions that include the spin-off.
For this purpose, any acquisitions of the Company's shares within two years
before or after the spin-off are presumed to be part of such a plan, although
the Company may be able to rebut that presumption. As a result of such possible
adverse U.S. federal income tax consequences, the Company may be restricted in
its ability to affect certain acquisitions, issuances of Company shares or other
transactions that would result in a change of control of the Company. Section
355(e) of the Internal Revenue Code is not expected to place limitations on the
stock repurchase program the Company announced in January 2001.

INCREASED PRODUCTION AND DELIVERY COSTS COULD ADVERSELY AFFECT THE
COMPANY'S OPERATING RESULTS.

Increases in production costs such as labor and paper could adversely
affect the Company's profitability. In addition, events such as the 1997 United
Parcel Services strike can also adversely impact the Company's margins by
imposing higher delivery costs. Competitive pressures in the check printing
industry may have the effect of inhibiting the Company's ability to reflect any
of these increased costs in the prices of its products.

THE COMPANY DEPENDS ON A LIMITED SOURCE OF SUPPLY FOR ITS PRINTING PLATE
MATERIAL AND THE UNAVAILABILITY OF THIS MATERIAL COULD HAVE AN ADVERSE EFFECT ON
ITS RESULTS OF OPERATIONS.

The Company's check printing operations utilize a paper printing plate
material that is available from only a limited number of sources. The Company
believes it has a reliable source of supply for this material and that it
maintains an inventory sufficient to avoid any production disruptions in the
event of an interruption of its supply. In the event, however, that the
Company's current supplier becomes unwilling or unable to supply the required
printing plate material at an acceptable price and the Company is unable to
locate a suitable alternative source within a reasonable time frame, the Company
would be forced to convert its facilities to an alternative



printing process. Any such conversion would require the unanticipated investment
of significant sums and could result in production delays and loss of business.

THE COMPANY MAY BE UNABLE TO PROTECT ITS INTELLECTUAL PROPERTY.

Despite efforts by the Company to protect its intellectual property, third
parties may infringe or misappropriate the Company's intellectual property or
otherwise independently develop substantially equivalent products and services.
The loss of intellectual property protection or the inability to secure or
enforce intellectual property protection could harm the Company's business and
ability to compete. The Company relies on a combination of trademark and
copyright laws, trade secret protection and confidentiality and license
agreements to protect its trademarks, software and know-how. The Company may be
required to spend significant resources to protect its trade secrets and monitor
and police its intellectual property rights.

Third parties may assert infringement claims against the Company in the
future. In particular, there has been a substantial increase in the issuance of
patents for Internet-related systems and business methods, which may have broad
implications for all participants in Internet commerce. Claims for infringement
of these patents are increasingly becoming a subject of litigation. If the
Company becomes subject to an infringement claim, it may be required to modify
its products, services and technologies or obtain a license to permit its
continued use of those rights. The Company may not be able to do either of these
things in a timely manner or upon reasonable terms and conditions. Failure to do
so could seriously harm the Company's business, operating results and prospects
as a result of lost business, increased expense or being barred from offering
its products or implementing its systems or other business methods. In addition,
future litigation relating to infringement claims could result in substantial
costs to the Company and a diversion of management resources. Adverse
determinations in any litigation or proceeding could also subject the Company to
significant liabilities and could prevent the Company from using or offering
some of its products, services or technologies.

THE COMPANY IS DEPENDENT UPON eFUNDS FOR CERTAIN SIGNIFICANT INFORMATION
TECHNOLOGY NEEDS.

The Company has entered into an agreement with eFunds for the provision of
software development, maintenance and support services through March 31, 2005.
In the event that eFunds is not able to provide adequate information technology
services, the Company would be adversely affected. Although the Company believes
that information technology services are available from numerous sources, a
failure to perform by eFunds could cause a disruption in the Company's business
while it obtains an alternative source of supply.

LEGISLATION RELATING TO CONSUMER PRIVACY PROTECTION COULD HARM THE
COMPANY'S BUSINESS.

In July 2001, the Company will be subject to regulations implementing the
privacy requirements of a new federal financial modernization law known as The
Gramm-Leach-Bliley Act ("the Act"). The Act requires the Company to develop and
implement policies to protect the security and confidentiality of consumers'
nonpublic personal information and to disclose these policies to consumers
before a customer relationship is established and annually thereafter. These new
regulations could have the effect of increasing the Company's expenses and
otherwise foreclosing future business initiatives.

The Act does not prohibit state legislation or regulations that are more
restrictive on the collection and use of data. More restrictive legislation or
regulations have been introduced in the past and could be introduced in the
future in Congress and the states. The Company is unable to predict whether more
restrictive legislation or regulations will be adopted in the future. Any future
legislation or regulations could have a negative impact on the Company's
business, results of operations or prospects.

Laws and regulations may be adopted in the future with respect to the
Internet or e-commerce covering issues such as user privacy. New laws or
regulations may impede the growth of the Internet. This could decrease traffic
to the Company's websites and decrease the demand for the Company's products or
services. Additionally, the applicability to the Internet of existing laws
governing property ownership, taxation, libel and personal privacy is uncertain
and may remain uncertain for a considerable length of time.

THE INTERNAL REVENUE SERVICE (IRS) MAY TREAT THE SPIN-OFF OF eFUNDS AS
TAXABLE TO THE COMPANY AND TO ITS SHAREHOLDERS IF REPRESENTATIONS MADE TO THE
IRS WERE INACCURATE OR IF UNDERTAKINGS MADE TO THE IRS OR THE REQUIREMENTS OF
THE INTERNAL REVENUE CODE ARE NOT FULFILLED.

The Company has received confirmation from the IRS that, for U.S. federal
income tax purposes, the spin-off of eFunds is tax-free to the Company and to
its shareholders, except to the extent that cash was received in lieu of
fractional shares. This confirmation



is premised on a number of representations and undertakings made by Deluxe and
eFunds to the IRS, including representations with respect to each company's
intention not to engage in certain transactions in the future. The spin-off may
be held to be taxable to the Company and to its shareholders who receive eFunds
shares if the IRS determines that any of the representations made are incorrect
or untrue in any respect, or if any undertakings made are not complied with. If
the spin-off is held to be taxable, both the Company and its shareholders who
receive eFunds shares could be subject to a material amount of taxes. eFunds
will be liable to the Company for any such taxes incurred by the Company to the
extent such taxes are attributable to specific actions or failures to act by
eFunds, or to specific transactions involving eFunds following the spin-off. In
addition, eFunds will be liable to the Company for a portion of any taxes
incurred by the Company if the spin-off fails to qualify as tax-free as a result
of a retroactive change of law or other reason unrelated to the action or
inaction of either eFunds or the Company. eFunds may not, however, have adequate
funds to perform its indemnification obligations and such indemnification
obligations are only for the benefit of the Company and not individual
shareholders.

THE COMPANY MAY BE SUBJECT TO ENVIRONMENTAL RISKS.

The Company's check printing plants are subject to many existing and
proposed federal and state regulations designed to protect the environment. In
some instances, the Company has owned and operated its check printing plants
before the environmental regulations came into existence. The Company has sold
former check printing plants to third parties and in most instances has agreed
to indemnify the current owner of the facility for on-site environmental
liabilities. Although the Company is not aware of any fact or circumstance which
would require the future expenditure of material amounts for environmental
compliance, if environmental liabilities are discovered at its check printing
plants, it could be required to spend material amounts for environmental
compliance in the future.

THE COMPANY MAY BE SUBJECT TO SALES AND OTHER TAXES WHICH COULD HAVE
ADVERSE EFFECTS ON ITS BUSINESS.

In accordance with current federal, state and local tax laws, and the
constitutional limitations thereon, the Company currently collects sales, use or
other similar taxes in state and local jurisdictions where the Company's
direct-to-consumer businesses have a physical presence. One or more state or
local jurisdictions may seek to impose sales tax collection obligations on the
Company and other out-of-state companies which engage in remote or online
commerce. Further, tax law and the interpretation of constitutional limitations
thereon, are subject to change. In addition, any new operations of these
businesses in states where they do not presently have a physical presence could
subject shipments of goods by these businesses into such states to sales tax
under current or future laws. If one or more state or local jurisdictions
successfully asserts that the Company must collect sales or other taxes beyond
its current practices, it could have a material, adverse affect on the Company's
business.