1. What is the optimal mix of debt and equity for the company?

2. Should the company continue to partake in share repurchases? How about introducing a dividend?

3. How can the company overcome some of the declines in the business?

4. Can the company survive the proposed debt and return of capital proposal in a reasonable downside scenario?

Sales Model ($ 000,000) Market sales Total market size Change in market size Deluxe market share John Harland market share Clarke American market share Deluxe Total Sales Sales by business unit Deluxe Financial Services Deluxe Direct Checks Deluxe Business Services Financial Services Sales Direct Checks Sales Business Services Sales Total Sales 2001 2,609.0 2,530.7 -3% 49% 25% 26% 49% 25% 26% 1,278.4 60% 24% 16% 2002 767.0 306.8 204.5 1,240.0 60% 24% 16% 744.0 297.6 198.4 Fiscal Year 2003 2,454.8 -3% 49% 25% 26% 1,202.8 60% 24% 16% 721.7 288.7 192.5 2004 2,381.1 -3% 49% 25% 26% 60% 24% 16% 2005 700.1 280.0 186.7 2,309.7 -3% 49% 25% 26% 1,166.8 1,131.8 1,097.8 60% 24% 16% 679.1 271.6 181.1 2006 1,278.4 1,240.0 1,202.8 1,166.8 1,131.8 2,240.4 -3% 49% 25% 26% 60% 24% 16% 658.7 263.5 175.6 1,097.8