Clarke American and Xerox Announce Major Breakthrough in Check Printing Technology; "InTouch a Milestone in Banking Industry Quest for 'One-to-One' Marketing".

SAN ANTONIO--(BUSINESS WIRE)--Feb. 21, 1996--Clarke American Checks, Inc. and the Xerox Corp. have announced the successful development of a new non-impact laser printer which company officials describe as a major breakthrough in check printing technology.

"InTouch(TM)," Clarke American's name for its new printing and database interface capacity, was developed jointly over several years by Clarke American and Xerox engineers. It represents an investment of more than $28 million by Clarke American. In addition to advances in flexibility, speed, accuracy and environmental friendliness, InTouch sets the stage for financial institutions to achieve a degree of "one-to-one" consumer marketing highly valued in today's competitive market.

"The production and marketing capabilities of InTouch represent a quantum leap in check printing technology," said Charles Korbell, Clarke American president and CEO. "For Clarke American, InTouch also represents our commitment to technological excellence and to providing state-of-the-art support for our customers well into the next century."

Specifically, the new custom system adapted Xerox's 4635MX laser printing technology to Clarke American's requirements. Foremost among those applications was the capability to print on wide format paper stock to accommodate the mainstream check printing process, high-quality Magnetic Ink Character Recognition readability, and a unique quality assurance feature that ensures error-free data and stock verification in the printing process and moves the company one step closer to zero defects.

Because the system requires neither inks nor printing plates, the use of disposable chemicals is eliminated, making InTouch an environmentally friendly printing process. Also eliminated, by virtue of computer technology, are traditional numbering machines and changeover requirements between printing runs, resulting in improved accuracy, faster processing and delivery to the consumer. In addition, consumer testing clearly revealed that the quality of InTouch printing was preferred over current offset printing by the majority of respondents.

"We are extremely pleased with the result of this joint effort from two quality-driven companies," said Louis G. Karagianis, vice president and general manager for Xerox Special Information Systems. "It represents a great stride forward in the check printing industry. For Xerox, the development of InTouch with Clarke American demonstrates our ability to listen and respond with cutting-edge, high-technology products that provide complete solutions rather than make-do solutions. Our goal is to apply the technological expertise which is synonymous with the Xerox name to the special needs of specific industries."

In an era when financial institutions are faced with the dual challenges of reaching customers with traditional and new services, while maintaining customer loyalty, InTouch provides a cost-effective technology to reach customers with highly individualized marketing messages, and product and service information. This approach can significantly strengthen cross-selling and up-selling opportunities by tailoring product and service offers specifically for customer needs. For example, the family with high school-age children might receive information on the financial institution's college loan programs, while a new business owner might be introduced to the bank's business line of credit options.

The most immediate appearance of the InTouch technology will be in the check box, the familiar package in which new checks arrive. By interfacing with a financial institution's customer database, various pages of each order can be quickly and accurately customized to carry messages of particular interest to the recipient. Initially, messages will include such information as individual branch hours, ATM locations, check reorders, pricing and other account information of interest to the check recipient.

Clarke American officials said that as the technology applications are expanded, linkage with customer databases will enable a financial institution to tailor individualized consumer messages that will encompass the entire range of a financial institution's services.

"The checking account is at the heart of the relationship financial institutions have with businesses and consumers," Korbell said. "InTouch is an enabling technology that will provide opportunities to improve and help secure that relationship."

Dr. Jim Moore, president of Mentis Corporation, a firm specializing in the evaluation of financial institution information technologies, said that Clarke American's InTouch system provides a solid foundation for banks to reach a "segment of one."

"Part of the reason financial institutions are rapidly expanding their electronic delivery channels is to facilitate individualized messages to customers any time, any place," Moore said. "The InTouch system assures that same objective can be supported through paper-based transactions."

InTouch is the latest technological innovation introduced by the 122-year-old printing and banking services company. Clarke American's innovations concentrate on technological and service advancements that help financial institutions increase revenue and reduce expenses.

Headquartered in San Antonio, Texas, Clarke American Checks, Inc., is a specialty printer of checks, financial forms and other consumer products. With sales exceeding $260 million, the company produces annually more than 40 million orders for checks and share drafts, which are marketed through more than 4,200 banks, credit unions and other financial institutions. Clarke American is part of Caradon Inc., of Westport, Connecticut, the North American management company for Caradon plc, of Weybridge, Surrey, England. Caradon plc is a holding company with more than 60 businesses worldwide.

Xerox Special Information Systems, Pasadena, Calif., a business unit of Xerox Corp., was responsible for working with Clarke American and developing this new capability. The Document Company, Xerox is the leader in providing world-class document processing products, systems and services. -0-

Note to Editors: InTouch is a registered trademark of Clarke American Checks, Inc.

CONTACT: Clarke American Checks, Inc.

Charlene Lake, 210/690-6498

or

Xerox Corp.

Barry Sulpor, 310/333-3427

or

Glodow Coats & Nead Publicity Services

John Glodow, 415/864-2333