Deluxe Announces Plans to Close Call Center

ST. PAUL, Minn.--(BUSINESS WIRE)--Aug. 17, 2006--Deluxe Corporation (NYSE:DLX - News) announced today it will close its Syracuse, New York customer service call center as part of its previously announced plans to streamline business operations and reduce costs. The facility, which employs 260 people, is expected to be closed during the first quarter of 2007.

"This was not an easy decision given that this facility has been one of our industry leading call centers," said Luann Widener, president of Deluxe Financial Services. "However, we need to better align our call center operations and cost structure to call volumes and client requirements. We are committed to providing a seamless transition of customer support to our remaining call centers while we work closely with the affected employees to provide a variety of support services, including severance benefits and outplacement assistance as well as affording them opportunities to apply for other open positions within Deluxe. We truly appreciate our long-standing relationship with the Syracuse community and the quality service and support the employees at this location have provided to Deluxe and its customers."

Costs associated with the closure are not expected to be significant, and the full benefit of the cost savings resulting from this streamlining of the Company's call centers is expected to be realized beginning in the second quarter of 2007.

About Deluxe

Deluxe Corporation, through its industry-leading businesses and brands, helps financial institutions and small businesses better manage, promote, and grow their businesses. The Company uses direct marketing, distributors, and a North American sales force to provide a wide range of customized products and services: personalized printed items (checks, forms, business cards, stationery, greeting cards, labels, and shipping/packaging supplies), promotional products and merchandising materials, fraud prevention services, and customer retention programs. The Company also sells personalized checks and accessories directly to consumers. For more information about Deluxe, visit www.deluxe.com.

Forward-Looking Statements

Statements made in this release concerning the Company's or management's intentions, expectations, or predictions about future results or events are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements reflect management's current expectations or beliefs, and are subject to risks and uncertainties that could cause actual results or events to vary from stated expectations, which variations could be material and adverse. Factors that could produce such a variation include, but are not limited to, the following: the inherent unreliability of earnings, revenue and cash flow predictions due to numerous factors, many of which are beyond the Company's control; declining demand for the Company's check and check-related products and services due to increasing use of alternative payment methods; intense competition in the check printing business; continued consolidation of financial institutions, thereby reducing the number of potential customers and referral sources and increasing downward pressure on our revenues and gross margins; risks that our Small Business Services segment strategies to increase its pace of new customer acquisition and average annual sales to existing customers, while at the same time increase its operating margins, are delayed or unsuccessful; risks that our Financial Services segment will not be successful in simplifying its core business model and reducing its cost structure; risks that cost reductions in the Company's shared services areas will be delayed or unsuccessful; performance shortfalls by the Company's major suppliers, licensors or service providers; unanticipated delays, costs and expenses in the development and marketing of new products and services; and the impact of governmental laws and regulations. Our forward-looking statements speak only as of the time made, and we assume no obligation to publicly update any such statements. Additional information concerning these and other factors that could cause actual results and events to differ materially from the Company's current expectations are contained in the Company's Form 10-K for the year ended December 31, 2005, as updated in the Company's Form 10-Q for the quarter ended June 30, 2006.

Contact:
Deluxe Corporation
Terry Peterson, 651-787-1068

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Source: Deluxe Corporation

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