PARIS PREPARED FOR CHECK-21

Burlington, NJ – October 25, 2004 – Overview: On October 28, 2004 provisions of the Check Clearing for the 21^st Century Act (“Check-21”) will go into effect.  The intent of this act is to avoid check-clearing delays and improve efficiency by allowing banks to transmit and clear checks electronically.  Banks will want to conform to this process because it saves them time and money and reduces the chances of fraud caused by physical transport.  Under “Check-21”, banks are no longer required to return cancelled checks to the customer.  Instead, certified photo copies of checks known as “substitute checks” will be issued to the customer and will carry the same legal rights as the originals.  The “Check-21” Act is not involved with dictating the specifications or standards for original paper checks--Changing the image quality of security features on original paper checks is strictly voluntary.

Key Points:

• This Act enables banks to process electronically—it does not require them to.

• Although the Act goes into effect October 28, adoption will not happen overnight.

• This ACT does not permit banks to reject an original paper check.  Banks may reject the image replacement document or electronic check if the appropriate information is not included.

• A substitute check is a paper copy of the front and back of the original check and must be printed in accordance with very specific standards since it carries the same legal rights as the original.

• Banks retain the substitute checks and are not required by law to provide them to the customer. Customers will typically get a standard copy that has no legal rights.

• “Check-21” does not require any changes to be made to original paper checks and does not dictate anything in regards to the printing of paper checks.

• Some recommendations have been made that will allow checks to be scanned more clearly.

• Since banks benefit from electronic clearing, most banks will likely adopt the Check-21 Act.

Improvements to DocuGard Security Checks:

Paris has reviewed the “Check-21” Act in depth and consulted with industry experts to determine how we can help banks scan checks more effectively and efficiently.  In fact, Paris has contacted every major national bank to discuss the check standards they are requesting.  Therefore, Paris will be offering our customers DocuGard Checks with advanced “Check-21 Friendly” features.  We feel these improved DocuGard checks will be the best way to deter fraud while complying with the bank’s image quality requests.  Paris’ “Check-21” solution will be tested on all major bank scanners to guarantee a clear, problem-free substitute image every time.  Look for these improved DocuGard checks at the same great value that you have come to expect from Paris—we will be offering them as a running change late October into November.  Some of the features include:

• Advanced “Check-21” enabled pantograph technology that passes all major scanning tests

• Improved, next generation VOID pantograph image 

• Strategic placements of background images in consideration with bank recommendations

• MICR area completely free of background images