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| Pennsylvania                                               |                                                                        | 22-1895850                             |
|------------------------------------------------------------|-----------------------------------------------------------------------------|----------------------------------------|
| (State      of Incorporation)                              |                                                                        | (IRS      Employer Identification No.) |
|                                                       |                                                                        |                                   |
| 101      Wolf Drive, PO Box 188,Thorofare,      New Jersey |                                                                        | 08086                                  |
| (Address      of principal executive offices)              |                                                                        | (Zip      Code)                        |
|                                                       |                                                                        |                                   |
|                                                       | 856-848-1800                                                                |                                   |
|                                                       | (Registrant’s      telephone number, including area code)   |                                   |

| Title      of each classto      be so registered |                                                                                                                        | Name      of each exchange on whicheach      class is to be registered |
|--------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------|
| Common      Stock Purchase Rights                |                                                                                                                        | New      York Stock Exchange                                           |
|                                             |                                                                                                                        |                                                                   |
|                                             | Securities      to be registered pursuant to Section 12(g) of the Act:Common      Stock, Par Value $.10 Per Share |                                                                   |
|                                             | (Title      of class)                                                                                                  |                                                                   |

| Large      accelerated filer      þ          |   | Accelerated      filer      o |   | Non-accelerated      filer      o |   | Smaller      reporting company      o |
|---------------------------------------------------|--------|-------------------------------|--------|-----------------------------------|--------|---------------------------------------|
| (Do      not check if a smaller reportingcompany) |

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|           |                                                                 |                                                                                                                    | Page   |
|----------------|----------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------|--------|
| PART I.   |                                                                 |                                                                                                                    |   |
|           | Item 1.                                                         | Business                                                                                                                | 3-8    |
|           | Item 1A.                                                        | Risk Factors                                                                                                            | 9-12   |
|           | Item 1B.                                                        | Unresolved Staff Comments                                                                                               | 12     |
|           | Item 2.                                                         | Properties                                                                                                              | 12     |
|           | Item 3.                                                         | Legal Proceedings                                                                                                       | 12     |
|           | Item 4.                                                         | Submission of Matters to Vote of      Stockholders                                                                      | 12     |
| PART II.  |                                                                 |                                                                                                                    |   |
|           | Item 5.                                                         | Market for Registrant’s Common Equity, Related Stockholder      Matters and Issuer Purchases of Equity Securities | 12-13  |
|           | Item 6.                                                         | Selected Financial Data                                                                                                 | 14     |
|           | Item 7.                                                         | Management’s Discussion and Analysis of Financial Condition      and Results of Operations                        | 15-29  |
|           | Item 7A.                                                        | Quantitative and Qualitative Disclosures About Market      Risk                                                         | 29     |
|           | Item 8.                                                         | Financial Statements and Supplementary    Data                                                                          | 30-59  |
|           | Item 9.                                                         | Changes in and Disagreements with Accountants on Accounting      and Financial Disclosure                               | 60     |
|           | Item 9A.                                                        | Controls and Procedures                                                                                                 | 60     |
|           | Item 9B.                                                        | Other Information                                                                                                       | 60     |
| PART III. |                                                                 |                                                                                                                    |   |
|           | Item 10.                                                        | Directors and Executive Officers and Corporate      Governance                                                          | 60     |
|           | Item 11.                                                        | Executive Compensation                                                                                                  | 60     |
|           | Item 12.                                                        | Security Ownership of Certain Beneficial Owners and      Management                                                     | 60     |
|           | Item 13.                                                        | Certain Relationships and Related Transactions, and      Director Independence                                          | 60     |
|           | Item 14.                                                        | Principal Accounting Fees and Services                                                                                  | 60     |
| PART IV.  |                                                                 |                                                                                                                    |   |
|           | Item 15.                                                        | Exhibits and Financial Statement    Schedules                                                                           | 61     |
|           | SIGNATURES                                                           | 62                                                                                                                      |
|           | INDEX TO EXHIBITS                                                    | 63                                                                                                                      |
|           | SCHEDULE II – Valuation and Qualifying      Accounts | 64                                                                                                                      |

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PART I

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| §   | communicate      the synergies within Checkpoint’s product portfolio to demonstrate the      unique value that the collection of these products bring to customers as a      holistic, end-to-end solutions; |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | open      new, and expand existing retail accounts with new products that will      increase penetration through integrated value-added solutions for      labeling, security, andmerchandising; |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | establish      business-to-business web-based capabilities to enable retailers and      manufacturers to initiate and track their orders through the supply chain      on a global basis; |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | expand      market opportunities to manufacturers and distributors, including source      tagging and value-added labeling; |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------|

| §   | continue      to promote source tagging around the world with extensive integration and      automation capabilities using new EAS, RFID, and auto-ID technologies;      and |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | assist      retailers in understanding the benefits and implementation of the new EPC      using RFID technology. |
|--------------------|-------------------------------------------------------------------------------------------------------------------|

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| §   | by      providing total loss prevention solutions to the  retailer; |
|--------------------|---------------------------------------------------------------------|

| §   | by      communicating, messaging and highlighting Checkpoint’s unique position as      a single source provider of integrated and complete solutions for      retailers; |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | by      helping retailers sell more merchandise by avoiding stock-outs and making      merchandise available to consumers; |
|--------------------|----------------------------------------------------------------------------------------------------------------------------|

| §   | by      serving as a single point of contact for auto-ID and EAS labeling and      ticketing needs; |
|--------------------|-----------------------------------------------------------------------------------------------------|

| §   | through      direct sales efforts, comprehensive public relations efforts, online      marketing and targeted trade showparticipation; |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------|

| §   | through      superior service and support capabilities;and |
|--------------------|------------------------------------------------------------|

| §   | by      emphasizing source taggingbenefits. |
|--------------------|---------------------------------------------|

| §   | increase      installation of EAS equipment on a chain-wide basis with leading retailers      around the world; |
|--------------------|-----------------------------------------------------------------------------------------------------------------|

| §   | offer      integrated tag solutions, including custom tag conversion that addresses      the needs of branding, tracking, and loss  prevention; |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | assist      retailers in promoting source tagging with  vendors; |
|--------------------|------------------------------------------------------------------|

| §   | broaden      penetration of existing accounts by promoting our in-house printing,      global service bureau network, and labeling solution      capabilities; |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | support      manufacturers and suppliers to speed  implementation; |
|--------------------|--------------------------------------------------------------------|

| §   | expand      RF tag technologies and products to accommodate the needs of the packaging      industry; and |
|--------------------|-----------------------------------------------------------------------------------------------------------|

| §   | develop      compatibility with EPC/RFIDtechnologies. |
|--------------------|-------------------------------------------------------|

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|   Name             |   Age | TenurewithCompany |  Position      with the Company andDate      of Election to Position                         |
|------------------------------|-----------------|-------------------|---------------------------------------------------------------------------------------------------|
| Robert      P. van der Merwe | 57              | 3 years      | Chairman      since December 2008, President and Chief Executive Officer since December      2007 |
| Raymond      D. Andrews      | 56              | 5 years      | Senior      Vice President and Chief Financial Officer since December    2007                     |
| Bernard      Gremillet       | 57              | 6 years      | Executive      Vice President, Global Customer Management since January    2009                   |
| Per      H. Levin            | 52              | 15 years     | President,      Shrink Management and Merchandise Visibility Solutions since March      2006      |
| Steven      Davidson         | 52              | 2 year       | President,      Global Apparel Labeling Solutions since October 2008                              |
| John      R. Van Zile        | 57              | 6 years      | Senior      Vice President, General Counsel and Secretary since June    2003                      |
| Farrokh      Abadi           | 48              | 6 years      | Senior      Vice President and Chief Innovation Officer since October    2008                     |

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Item 1A. RISK FACTORS

| §   | the      difficulty in enforcing agreements, collecting receivables and protecting      assets through foreign legalsystems; |
|--------------------|------------------------------------------------------------------------------------------------------------------------------|

| §   | trade      protection measures and import or export licensing      requirements; |
|--------------------|----------------------------------------------------------------------------------|

| §   | difficulty      in staffing and managing widespread operations and the application of      foreign labor regulations; |
|--------------------|-----------------------------------------------------------------------------------------------------------------------|

| §   | compliance      with a variety of foreign laws andregulations; |
|--------------------|----------------------------------------------------------------|

| §   | changes      in the general political and economic conditions in the countries where we      operate, particularly in emergingmarkets; |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------|

| §   | the      threat of nationalization andexpropriation; |
|--------------------|------------------------------------------------------|

| §   | increased      costs and risks of doing business in a number of foreign      jurisdictions; |
|--------------------|---------------------------------------------------------------------------------------------|

| §   | changes      in enacted tax laws; |
|--------------------|-----------------------------------|

| §   | limitations      on repatriation of earnings; and |
|--------------------|---------------------------------------------------|

| §   | fluctuations      in equity and revenues due to changes in foreign currency exchange      rates. |
|--------------------|--------------------------------------------------------------------------------------------------|

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| §   | develop      and fund technological innovations, such as those related to our next      generation EAS product solutions, continued investment in evolving RFID      technologies, and other innovative security device, software, and systems      initiatives; |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | receive      and maintain necessary patent and trademark protection;  and |
|--------------------|---------------------------------------------------------------------------|

| §   | successfully      anticipate customer needs andpreferences. |
|--------------------|-------------------------------------------------------------|

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Item 1B. UNRESOLVED STAFF COMMENTS

Item 2. PROPERTIES

Item 3. LEGAL PROCEEDINGS

Item 4. SUBMISSION OF MATTERS TO A VOTE OFSTOCKHOLDERS

PART II

Item 5. MARKET FOR THE REGISTRANT’S COMMON EQUITY, RELATEDSTOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES

|                                          | Market      PricePer      Share |
|-----------------------------------------------|---------------------------------|
|                                          | High                            | Low |
| Fiscal      year ended December 27, 2009 |                            |   |
| First      Quarter                            | $      11.00                    | $   6.06 |
| Second      Quarter                           | $      16.00                    | $   8.50 |
| Third      Quarter                            | $      18.10                    | $      14.49 |
| Fourth      Quarter                           | $      16.91                    | $      13.32 |
| Fiscal      year ended December 28, 2008 |                            |   |
| First      Quarter                            | $  28.38              | $  21.49 |
| Second      Quarter                           | $  28.10              | $  20.80 |
| Third      Quarter                            | $  23.43              | $  17.32 |
| Fourth      Quarter                           | $  18.99              | $    9.01 |

----

|                                                                                                                                          | Equitycompensationplans      approvedby      shareholders                | Equitycompensationplans      notapproved      byshareholders | Total                                                  |
|-----------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------|--------------------------------------------------------------|--------------------------------------------------------|
| Number      of securities to be issued upon exercise of outstanding      options                                                              | 2,777,897(1)                                                             | 270,000(2)                                                   | 3,047,897                                              |
| Weighted      average exercise price of outstanding options                                                                                   | $           17.62 | $        22.71       | $        18.07 |
| Number      of securities remaining available for future issuance under equity      compensation plans (excluding securities reflected above) | 1,012,994                                                                | —                                                      | 1,012,994                                              |

|   Year |  CheckpointSystems,      Inc. |  NYSE/AMEX/NASDAQStock      Market Index | NASDAQ      ElectronicComponents      andAccessories      Index |
|------------------|------------------------------------|-----------------------------------------------|-----------------------------------------------------------------|
| 2004             | 100.00                             | 100.00                                        | 100.00                                                          |
| 2005             | 136.56                             | 106.14                                        | 104.81                                                          |
| 2006             | 111.92                             | 123.11                                        | 99.64                                                           |
| 2007             | 143.99                             | 129.52                                        | 116.01                                                          |
| 2008             | 54.52                              | 77.57                                         | 59.41                                                           |
| 2009             | 84.51                              | 100.12                                        | 95.33                                                           |

| A.   | Note:      Data complete through last fiscalyear. |
|----------------|---------------------------------------------------|

| B.   | Note:      Corporate Performance Graph with peer group uses peer group only      performance (excludes onlycompany). |
|----------------|----------------------------------------------------------------------------------------------------------------------|

| C.   | Note:      Peer group indices use beginning of period market capitalization      weighting. |
|----------------|---------------------------------------------------------------------------------------------|

| D.   | Note:      Data and graph are calculated from CRSP Total Return Index for the      NYSE/AMEX/NASDAQ Stock Market (U.S. Companies), Center for Research in      Security Prices (CRSP), Graduate School of Business, The University of      Chicago. |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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Item 6. SELECTED FINANCIAL DATA

|  Year      ended                                                                                    | Dec. 27,2009                                                                      | Dec. 28,2008                                                                            | Dec. 30,2007                                                            | Dec. 31,2006                                                                  | Dec. 25,2005                                                                  |
|----------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------|------------------------------------------------------------------------------|------------------------------------------------------------------------------------|------------------------------------------------------------------------------------|
| STATEMENT      OF OPERATIONS DATA                                                                        |                                                                                   |                                                                                         |                                                                         |                                                                               |                                                                               |
| Net      revenues                                                                                        | $  772,718                                                                   | $           917,082                                                 | $          834,156                                       | $          687,775                                             | $          717,992                                             |
| Earnings      (loss) from continuing operations before income taxes                                      | $    35,985                                                        | $          (29,209)                                                      | $            70,576                            | $            41,975                                  | $            40,127                                  |
| Income      taxes expense                                                                                | $    10,290                                                        | $                  719           | $            12,174                            | $              6,987                       | $            11,661                                  |
| Earnings      (loss) from continuing operations                                                          | $    25,695                                                        | $          (29,928)                                                      | $            58,402                            | $            34,988                                  | $            28,466                                  |
| Discontinued      operations, net of tax                                                                 | $                  — | $              — | $                 359 | $                 903       | $              8,108                       |
| Net      earnings (loss) attributable to Checkpoint Systems, Inc.                                        | $      26,142(1)                                                                       | $      (29,805)(2)                                                                           | $   58,768(3)                                                 | $   35,922(4)                                                       | $   36,521(5)                                                       |
| Earnings      (loss) attributable to Checkpoint Systems, Inc. per share from continuing      operations: |                                                                                   |                                                                                         |                                                                         |                                                                               |                                                                               |
| Basic                                                                                                    | $                 .67                | $                (.76)                     | $                1.46      | $                  .89 | $                  .75 |
| Diluted                                                                                                  | $                 .66                | $                (.76)                     | $                1.43      | $                  .87 | $                  .72 |
| Earnings      (loss) attributable to Checkpoint Systems, Inc. per share:                                 |                                                                                   |                                                                                         |                                                                         |                                                                               |                                                                               |
| Basic                                                                                                    | $                 .67                | $                (.76)                     | $                1.47      | $                  .91 | $                  .96 |
| Diluted                                                                                                  | $                 .66           | $                (.76)                     | $                1.44      | $                  .89 | $                  .93 |
| Depreciation      and amortization                                                                       | $          32,325                                                  | $             30,788                                      | $            21,059                            | $            19,504                                  | $            22,539                                  |

| (1)   | Includes      a $5.4 million restructuring charge ($4.0 million, net of tax),      a $1.3 million litigation settlement charge ($0.8 million, net      of tax), and a valuation allowance adjustment of $5.3    million. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | Includes      a $59.6 million goodwill impairment charge ($58.5 million, net      of tax), a $6.4 million restructuring charge ($4.6 million, net      of tax), a $6.2 million litigation settlement charge      ($3.8 million, net of tax), a $3.0 million intangible asset      impairment charge ($2.2 million, net of tax), a $1.5 million fixed      asset impairment charge ($1.1 million, net of tax), and a      $1.0 million gain from the sale of our Czech subsidiary      ($1.0 million, net of tax). |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3)   | Includes      a $2.7 million ($2.0 million, net of tax) restructuring charge,      a $4.4 million ($2.9 million, net of tax) charge related to the      CEO transition, and a $2.6 million ($2.5 million, net of tax)      gain from the sale of our Austriansubsidiary |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4)   | Includes      a $7.0 million ($4.8 million, net of tax) restructuring charge,      a $2.3 million ($1.5 million, net of tax) litigation settlement      charge, and a $1.8 million ($1.1 million, net of tax) gain from      the settlement of a capital lease. Also included in discontinued      operations is a $2.8 million ($1.4 million, net of tax) gain on      the divestment of our barcodebusiness. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (5)   | Includes      a $12.6 million ($8.5 million, net of tax) restructuring charge,      a $1.4 million ($1.4 million, net of tax) asset impairment      charge, $2.0 million of additional tax expense related to our tax      restructuring and dividend repatriation under the American Jobs Creation      Act, and a $0.7 million ($0.7 million, net of tax) goodwill      impairment charge. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  (dollar      amounts in thousands)             | Dec. 27,2009                           |   | Dec. 28,2008          |   | Dec. 30,2007                                      |   | Dec. 31,2006                    |   | Dec. 25,2005          |   |
|------------------------------------------------------|---------------------------------------------|--------|----------------------------|--------|--------------------------------------------------------|--------|--------------------------------------|--------|----------------------------|--------|
| AT      YEAR END                                     |                                        |   |                       |   |                                                   |   |                                 |   |                       |   |
| Working      capital                                 | $    241,809            |   | $      282,752             |   | $    297,056                       |   | $      254,024                       |   | $      208,255             |   |
| Total      debt                                      | $    116,872            |   | $      145,286             |   | $      95,512            |   | $   16,534            |   | $   39,745  |   |
| Total      equity                                    | $    552,657            |   | $      505,238             |   | $    589,305                       |   | $      474,537                       |   | $      397,622             |   |
| Total      assets                                    | $      1,018,336                            |   | $      985,716             |   | $      1,031,044                                       |   | $      781,191                       |   | $      739,245             |   |
| FOR      THE YEAR ENDED                              |                                        |   |                       |   |                                                   |   |                                 |   |                       |   |
| Capital      expenditures                            | $      13,757 |   | $   15,217  |   | $      13,363            |   | $   11,520            |   | $   10,846  |   |
| Cash      provided by operating activities           | $    114,826            |   | $   77,206  |   | $      66,971            |   | $   22,386            |   | $   44,618  |   |
| Cash      (used in) provided by investing activities | $   (38,645)                 |   | $      (54,704)            |   | $      (106,151)                                       |   | $     7,963 |   | $   (8,521) |   |
| Cash      (used in) provided by financing activities | $   (50,316)                 |   | $   (4,460) |   | $        7,164 |   | $   (6,945)           |   | $      (18,283)            |   |
| RATIOS                                               |                                        |   |                       |   |                                                   |   |                                 |   |                       |   |
| Return      on net sales(a)                          | 3.38                                        | %      | (3.25)                     | %      | 7.05                                                   | %      | 5.22                                 | %      | 5.09                       | %      |
| Return      on average equity(b)                     | 4.94                                        | %      | (5.45)                     | %      | 11.05                                                  | %      | 8.24                                 | %      | 9.38                       | %      |
| Return      on average assets(c)                     | 2.61                                        | %      | (2.96)                     | %      | 6.49                                                   | %      | 4.73                                 | %      | 4.84                       | %      |
| Current      ratio(d)                                | 2.00                                        |   | 2.34                       |   | 2.42                                                   |   | 2.31                                 |   | 1.99                       |   |
| Percent      of total debt to capital(e)             | 17.46                                       | %      | 22.33                      | %      | 13.95                                                  | %      | 3.37                                 | %      | 9.09                       | %      |

| (a)   | “Return      on net sales” is calculated by dividing net earnings (loss) after the      cumulative effect of change in accounting principle by net      sales |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | “Return      on average equity” is calculated by dividing net earnings      (loss) after the cumulative effect of change in accounting principle      by average equity. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | “Return      on average assets” is calculated by dividing net earnings      (loss) after the cumulative effect of change in accounting principle      by average assets. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d)   | “Current      ratio” is calculated by dividing current assets by current      liabilities. |
|-----------------|--------------------------------------------------------------------------------------------------------|

| (e)   | “Percent      of total debt to capital” is calculated by dividing total debt by total      debt and equity. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------|

| (amounts      are in thousands, except employee data)              | Dec. 27,2009 | Dec. 28,2008               | Dec. 30,2007 | Dec. 31,2006 | Dec. 25,2005 |
|--------------------------------------------------------------------|-------------------|---------------------------------|-------------------|-------------------|-------------------|
| OTHER      INFORMATION                                             |              |                            |              |              |              |
| Weighted      average number of shares outstanding — diluted | 39,552            | 39,408(1)                       | 40,724            | 40,233            | 39,075            |
| Number      of employees                                           | 5,785             | 3,878                           | 3,930             | 3,213             | 3,955             |
| Backlog                                                            | $      50,186     | $    51,799 | $      73,462     | $      54,899     | $      52,234     |

| (1)   | Excludes      518 common shares from stock options and awards and 22 common shares from      deferred compensation arrangements as they are anti-dilutive due to our      net loss for the year. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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Item 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIALCONDITION AND RESULTS OF OPERATIONS

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| Contractual      Obligation(dollar      amounts in thousands) | Total                     | Due      in lessthan      1 year | Due      in1-3      years | Due      in3-5      years                | Due      after5      years               |
|---------------------------------------------------------------|---------------------------|----------------------------------|---------------------------|------------------------------------------|------------------------------------------|
| Long-term      debt (1)                                       | $   96,197 | $   3,600         | $   91,454 | $      781 | $      362 |
| Capital      leases (2)                                       | 4,564                     | 1,997                            | 2,460                     | 107                                      | —                                  |
| Operating      leases                                         | 38,074                    | 15,217                           | 15,626                    | 6,342                                    | 889                                      |
| Pension      obligations (3)                                  | 52,483                    | 4,682                            | 9,878                     | 10,374                                   | 27,549                                   |
| Acquisition      obligation (4)                               | 5,047                     | 5,047                            | —                   | —                                  | —                                  |
| Inventory      purchase commitments (5)                       | 7,314                     | 6,244                            | 1,066                     | 4                                        | —                                  |
| Total      contractual cash obligations                       | $      203,679            | $      36,787                    | $      120,484            | $      17,608                            | $      28,800                            |

| Commercial      Commitments(dollar      amounts in thousands) | Total        | Due      in lessthan      1 year | Due      in1-3      years  | Due      in3-5      years | Due      after5      years |
|---------------------------------------------------------------|--------------|----------------------------------|----------------------------|---------------------------|----------------------------|
| Standby      letters of credit                                | $      1,444 | $      1,444                     | $   — | $      —            | $      —             |
| Surety      bonds                                             | 2,473        | 1,984                            | 489                        | —                   | —                    |
| Total      commercial commitments                             | $      3,917 | $      3,428                     | $      489                 | $      —            | $      —             |

| (1)   | Includes      Secured Credit Facility, long-term full-recourse factoring liabilities,      and related interest payments through maturity of  $7,020. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | Includes      interest payments through maturity of$256. |
|-----------------|----------------------------------------------------------|

| (3)   | Amounts      represent undiscounted projected benefit payments to our unfunded plans      over the next 10 years. The expected benefit payments are estimated      based on the same assumptions used to measure our accumulated benefit      obligation at the end of 2009 and include benefits attributable to      estimated future employee service of current  employees. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4)   | The      acquisition obligation represents $3.0 million of deferred payments      to the minority shareholders of Shanghai Asialco Electronics Co., Ltd., a      subsidiary of SIDEP coupled with a $2.0 million deferred payment on a      non-compete contract related to theacquisition. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (5)   | Inventory      purchase commitments represent our legally binding agreements to purchase      fixed or minimum quantities of goods at determinable    prices. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                              | December      27,2009 | December      28,2008                              | December      30,2007                              |
|---------------------------------------------------|-----------------------|----------------------------------------------------|----------------------------------------------------|
|                                              |                  |                                               |                                               |
| SG&A      Restructuring Plan                  |                  |                                               |                                               |
| Severance      and other employee-related charges | $      2,828          | $       — | $       — |
| Manufacturing      Restructuring Plan             |                  |                                               |                                               |
| Severance      and other employee-related charges | 1,481                 | 699                                                | —                                            |
| Consulting      fees                              | —               | 838                                                | —                                            |
| 2005      Restructuring Plan                      |                  |                                               |                                               |
| Severance      and other employee-related charges | 1,149                 | 4,563                                              | 1,215                                              |
| Lease      termination costs                      | (57)                  | —                                            | 2,051                                              |
| Acquisition      integration costs                | —               | 519                                                | —                                            |
| Pension      curtailment                          | —               | —                                            | (420)                                              |
| 2003      Restructuring Plan                      |                  |                                               |                                               |
| Severance      and other employee-related charges | —               | (253)                                              | (145)                                              |
| Lease      termination costs                      | —               | 76                                                 | —                                            |
| Total                                             | $      5,401          | $  6,442                                 | $      2,701                                       |

| Fiscal      2009                                  | Accrual      atBeginning      ofYear         | Charged      toEarnings | ChargeReversed      toEarnings               | CashPayments             | Other                                  | ExchangeRateChanges   | Accrual      at12/27/2009 |
|---------------------------------------------------|----------------------------------------------|-------------------------|----------------------------------------------|--------------------------|----------------------------------------|-----------------------|---------------------------|
| SG&A      Restructuring Plan                  |                                         |                    |                                         |                     |                                   |                  |                      |
| Severance      and other employee-related charges | $      — | $      2,828            | $      — | $   (103) | $     — | $   85 | $      2,810              |
| Manufacturing      Restructuring Plan             |                                         |                    |                                         |                     |                                   |                  |                      |
| Severance      and other employee-related charges |    652                        | 1,614                   | (133)                                        |    (676)  |      —  |   24        | 1,481                     |
| 2005      Restructuring Plan                      |                                         |                    |                                         |                     |                                   |                  |                      |
| Severance      and other employee-related charges | 3,302                                        | 1,500                   | (351)                                        | (4,132)                  | —                                | —               | 319                       |
| Acquisition      restructuring costs (1)          | 568                                          | —                 | —                                      | (142)                    | (322)                                  | (17)                  | 87                        |
| Total                                             | $      4,522                                 | $      5,942            | $      (484)                                 | $      (5,053)           | $      (322)                           | $   92 | $      4,697              |

| Fiscal      2008                                  | Accrual      atBeginning      ofYear         | Charged      toEarnings      | ChargeReversed      toEarnings     | CashPayments                              | Other                | ExchangeRateChanges | Accrual      at12/28/2008    |
|---------------------------------------------------|----------------------------------------------|------------------------------|------------------------------------|-------------------------------------------|----------------------|---------------------|------------------------------|
| Manufacturing      Restructuring Plan             |                                         |                         |                               |                                      |                 |                |                         |
| Severance      and other employee-related charges | $      — | $    701 | $     (2) | $      (37) | $  — | $  (10)   | $    652 |
| 2005      Restructuring Plan                      |                                         |                         |                               |                                      |                 |                |                         |
| Severance      and other employee-related charges | 3,015                                        | 5,362                        | (799)                              | (4,141)                                   | —              | (135)               | 3,302                        |
| Acquisition      restructuring costs (1)          | 1,209                                        | —                      | —                            | (612)                                     | —              | (29)                | 568                          |
| Total                                             | $      4,224                                 | $      6,063                 | $      (801)                       | $      (4,790)                            | $  — | $      (174)        | $      4,522                 |

| (1)   | During      2007, restructuring costs of $1.2 million included as a cost of the      SIDEP acquisition ($1.1 million related to employee severance and      $0.1 million related to the cost to abandon facilities) were      accounted for under Emerging Issues Task Force Issue No. 95-3      “Recognition of Liabilities in Connection with Purchase Business      Combinations.” These costs were recognized as an assumed liability in the      acquisition and were included in the purchase price allocation at      November 9, 2007. During 2009, $0.3 million of the acquisition      restructuring liability was reversed related to the SIDEP      acquisition. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

|                                                              | Percentage      ofTotal      Revenues   |   | Percentage      Changein      Dollar Amount |   |
|-------------------------------------------------------------------|-----------------------------------------|--------|---------------------------------------------|--------|
| Year      ended                                                   | December      27,2009(Fiscal      2009) |   | December      28,2008(Fiscal      2008)     |   | December      30,2007(Fiscal      2007) |   | Fiscal      2009vs.Fiscal      2008 |   | Fiscal      2008vs.Fiscal      2007 |   |
| Net      revenues                                                 |                                    |   |                                        |   |   |   |   |   |   |   |
|      Shrink      Management Solutions    | 71.7                                    | %      | 74.9                                        | %      | 73.3 | % | (19.4) | % | 12.5 | % |
|      Apparel      Labeling Solutions     | 18.4                                    |   | 14.8                                        |   | 15.2 |   | 4.8 |   | 6.9 |   |
|      Retail      Merchandising Solutions | 9.9                                     |   | 10.3                                        |   | 11.5 |   | (18.3) |   | (2.0) |   |
| Net      revenues                                                 | 100.0                                   |   | 100.0                                       |   | 100.0 |   | (15.7) |   | 9.9 |   |
| Cost      of revenues                                             | 57.1                                    |   | 58.8                                        |   | 58.5 |   | (18.1) |   | 10.4 |   |
| Total      gross profit                                           | 42.9                                    |   | 41.2                                        |   | 41.5 |   | (12.4) |   | 9.3 |   |
| Selling,      general, and administrative expenses                | 34.0                                    |   | 32.4                                        |   | 31.3 |   | (11.5) |   | 13.8 |   |
| Research      and development                                     | 2.6                                     |   | 2.5                                         |   | 2.2 |   | (10.0) |   | 24.4 |   |
| Restructuring      expenses                                       | 0.7                                     |   | 0.7                                         |   | 0.3 |   | (16.2) |   | 138.5 |   |
| Asset      impairment                                             | —                                 |   | 0.5                                         |   | — |   | N/A |   | N/A |   |
| Goodwill      impairment                                          | —                                 |   | 6.5                                         |   | — |   | N/A |   | N/A |   |
| Litigation      settlement                                        | 0.2                                     |   | 0.6                                         |   | — |   | (78.9) |   | N/A |   |
| Other      operating income                                       | —                                 |   | 0.1                                         |   | 0.3 |   | N/A |   | (62.3) |   |
| Operating      income (loss)                                      | 5.4                                     |   | (1.9)                                       |   | 8.0 |   | (342.1) |   | (125.7) |   |
| Interest      income                                              | 0.3                                     |   | 0.3                                         |   | 0.7 |   | (25.9) |   | (51.1) |   |
| Interest      expense                                             | 1.0                                     |   | 0.6                                         |   | 0.3 |   | 28.1 |   | (145.8) |   |
| Other      (loss) gain, net                                  | —                                 |   | (0.9)                                       |   | 0.1 |   | N/A |   | N/A |   |
| Earnings      (loss) before income taxes                          | 4.7                                     |   | (3.1)                                       |   | 8.5 |   | (223.2) |   | (141.4) |   |
| Income      taxes expense                                         | 1.3                                     |   | 0.1                                         |   | 1.5 |   | N/A |   | (94.1) |   |
| Net      earnings (loss)                                          | 3.4                                     |   | (3.2)                                       |   | 7.0 |   | (185.9) |   | (150.7) |   |
| Less:      (Loss) attributable to noncontrolling interests.       | —                                 |   | —                                     |   | — |   | N/A |   | N/A |   |
| Net      earnings (loss) attributable to Checkpoint Systems, Inc. | 3.4                                     | %      | (3.2)                                       | %      | 7.0 | % | (187.7) | % | (150.7) | % |

----

| Year      ended                     | December      27,2009(Fiscal      2009) | December      28,2008(Fiscal      2008) |   | DollarAmountChangeFiscal      2009vs.Fiscal      2008 |   | PercentageChangeFiscal      2009vs.Fiscal      2008 |   |
|-------------------------------------|-----------------------------------------|-----------------------------------------|--------|-------------------------------------------------------|--------|-----------------------------------------------------|--------|
| Net      Revenues:                  |                                    |                                    |   |                                                  |   |                                                |   |
| Shrink      Management Solutions    | $      553.7                            | $      687.4                            |   | $  (133.7)                                  |   | (19.4)                                              | %      |
| Apparel      Labeling Solutions     | 141.9                                   | 135.3                                   |   | 6.6                                                   |   | 4.8                                                 |   |
| Retail      Merchandising Solutions | 77.1                                    | 94.4                                    |   | (17.3)                                                |   | (18.3)                                              |   |
| Net      Revenues                   | $      772.7                            | $      917.1                            |   | $  (144.4)                                  |   | (15.7)                                              | %      |

----

----

| Thirty-nine      weeks ended        | December      28,2008(Fiscal      2008) | December      30,2007(Fiscal      2007) |   | Dollar      AmountChangeFiscal      2008vs.Fiscal      2007 |   | PercentageChangeFiscal      2008vs.Fiscal      2007 |   |
|-------------------------------------|-----------------------------------------|-----------------------------------------|--------|-------------------------------------------------------------|--------|-----------------------------------------------------|--------|
| Net      Revenues:                  |                                    |                                    |   |                                                        |   |                                                |   |
| Shrink      Management Solutions    | $      687.4                            | $      611.2                            |   | $  76.2                                           |   | 12.5                                                | %      |
| Apparel      Labeling Solutions     | 135.3                                   | 126.6                                   |   | 8.7                                                         |   | 6.9                                                 |   |
| Retail      Merchandising Solutions | 94.4                                    | 96.4                                    |   | (2.0)                                                       |   | (2.0)                                               |   |
| Net      Revenues                   | $      917.1                            | $      834.2                            |   | $  82.9                                           |   | 9.9                                                 | %      |

----

----

----

----

Item 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKETRISK

----

Item 8.  FINANCIAL STATEMENTS AND SUPPLEMENTARYDATA

| Report      of Independent Registered Public Accounting Firm                                                                                      | 31    |
|---------------------------------------------------------------------------------------------------------------------------------------------------|-------|
| Consolidated      Balance Sheets as of December 27, 2009 and December 28,      2008                                                     | 32    |
| Consolidated      Statements of Operations for each of the years in the three-year period      ended December 27, 2009                       | 33    |
| Consolidated      Statements of Stockholders’ Equity for each of the years in the three-year      period ended December 27, 2009       | 34    |
| Consolidated      Statements of Comprehensive Income (Loss) for each of the years in the      three-year period ended December 27,      2009 | 35    |
| Consolidated      Statements of Cash Flows for each of the years in the three-year period      ended December 27, 2009                       | 36    |
| Notes      to Consolidated Financial Statements                                                                                                   | 37-59 |
| Financial      Statement Schedules, Schedule II – Valuation and Qualifying      Accounts                                          | 64    |

----

----

|                                                                                                                                                                        | December      27,2009                       | December      28,2008     |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------|---------------------------|
| ASSETS                                                                                                                                                                      |                                        |                      |
| CURRENT      ASSETS:                                                                                                                                                        |                                        |                      |
| Cash      and cash equivalents                                                                                                                                              | $    162,097            | $      132,222            |
| Restricted      cash                                                                                                                                                        | 645                                         | —                   |
| Accounts      receivable, net of allowance of $14,524 and $18,414                                                                                                           | 173,057                                     | 196,664                   |
| Inventories                                                                                                                                                                 | 89,247                                      | 102,122                   |
| Other      current assets                                                                                                                                                   | 33,068                                      | 41,224                    |
| Deferred      income taxes                                                                                                                                                  | 24,576                                      | 22,078                    |
| Total      Current Assets                                                                                                                                                   | 482,690                                     | 494,310                   |
| REVENUE      EQUIPMENT ON OPERATING LEASE, net                                                                                                                              | 2,016                                       | 2,040                     |
| PROPERTY,      PLANT, AND EQUIPMENT, net                                                                                                                                    | 117,598                                     | 86,735                    |
| GOODWILL                                                                                                                                                                    | 244,062                                     | 235,532                   |
| OTHER      INTANGIBLES, net                                                                                                                                                 | 104,733                                     | 113,755                   |
| DEFERRED      INCOME TAXES                                                                                                                                                  | 40,492                                      | 36,182                    |
| OTHER      ASSETS                                                                                                                                                           | 26,745                                      | 17,162                    |
| TOTAL      ASSETS                                                                                                                                                           | $      1,018,336                            | $      985,716            |
|                                                                                                                                                                        |                                        |                      |
| LIABILITIES      AND EQUITY                                                                                                                                                 |                                        |                      |
| CURRENT      LIABILITIES:                                                                                                                                                   |                                        |                      |
| Short-term      borrowings and current portion of long-term debt                                                                                                            | $      25,772 | $   11,582 |
| Accounts      payable                                                                                                                                                       | 61,700                                      | 63,872                    |
| Accrued      compensation and related taxes                                                                                                                                 | 36,050                                      | 32,056                    |
| Other      accrued expenses                                                                                                                                                 | 45,791                                      | 54,123                    |
| Income      taxes                                                                                                                                                           | 11,427                                      | 8,066                     |
| Unearned      revenues                                                                                                                                                      | 23,458                                      | 11,005                    |
| Restructuring      reserve                                                                                                                                                  | 4,697                                       | 4,522                     |
| Accrued      pensions — current                                                                                                                                       | 4,613                                       | 4,305                     |
| Other      current liabilities                                                                                                                                              | 27,373                                      | 22,027                    |
| Total      Current Liabilities                                                                                                                                              | 240,881                                     | 211,558                   |
| LONG-TERM      DEBT, LESS CURRENT MATURITIES                                                                                                                                | 91,100                                      | 133,704                   |
| ACCRUED      PENSIONS                                                                                                                                                       | 77,621                                      | 77,623                    |
| OTHER      LONG-TERM LIABILITIES                                                                                                                                            | 43,772                                      | 47,928                    |
| DEFERRED      INCOME TAXES                                                                                                                                                  | 12,305                                      | 9,665                     |
| COMMITMENTS      AND CONTINGENCIES                                                                                                                                          |                                        |                      |
| CHECKPOINT      SYSTEMS, INC. STOCKHOLDERS’ EQUITY:                                                                                                                   |                                        |                      |
| Preferred      stock, no par value, 500,000 shares authorized, noneissued                                                                                                   | —                                     | —                   |
| Common      stock, par value $.10 per share, 100,000,000 shares authorized,      issued         43,078,498      and 42,747,808 | 4,307                                       | 4,274                     |
| Additional      capital                                                                                                                                                     | 390,379                                     | 381,498                   |
| Retained      earnings                                                                                                                                                      | 200,054                                     | 173,912                   |
| Common      stock in treasury, at cost, 4,035,912 and 4,035,912 shares                                                                                                      | (71,520)                                    | (71,520)                  |
| Accumulated      other comprehensive income, net of tax                                                                                                                     | 28,603                                      | 16,150                    |
| Total      Checkpoint Systems, Inc. Stockholders’ Equity                                                                                                              | 551,823                                     | 504,314                   |
| NONCONTROLLING      INTERESTS                                                                                                                                               | 834                                         | 924                       |
| TOTAL      EQUITY                                                                                                                                                           | 552,657                                     | 505,238                   |
| TOTAL      LIABILITIES AND EQUITY                                                                                                                                           | $      1,018,336                            | $      985,716            |

----

| (amounts      in thousands, except per sharedata) |
|---------------------------------------------------|

| Year      ended                                                                           | December      27,2009                                | December      28,2008                            | December      30,2007                           |
|-------------------------------------------------------------------------------------------|------------------------------------------------------|--------------------------------------------------|-------------------------------------------------|
|                                                                                      |                                                 |                                             |                                            |
| Net      revenues                                                                         | $      772,718                                       | $      917,082                                   | $      834,156                                  |
| Cost      of revenues                                                                     | 441,434                                              | 538,983                                          | 488,184                                         |
| Gross      profit                                                                         | 331,284                                              | 378,099                                          | 345,972                                         |
| Selling,      general, and administrative expenses                                        | 262,649                                              | 296,935                                          | 260,854                                         |
| Research      and development                                                             | 20,354                                               | 22,607                                           | 18,170                                          |
| Restructuring      expenses                                                               | 5,401                                                | 6,442                                            | 2,701                                           |
| Litigation      settlement                                                                | 1,300                                                | 6,167                                            | —                                         |
| Asset      impairment                                                                     | —                                              | 4,510                                            | —                                         |
| Goodwill      impairment                                                                  | —                                              | 59,583                                           | —                                         |
| Other      operating income                                                               | —                                              | 968                                              | 2,571                                           |
| Operating      income (loss)                                                              | 41,580                                               | (17,177)                                         | 66,818                                          |
| Interest      income                                                                      | 1,971                                                | 2,660                                            | 5,443                                           |
| Interest      expense                                                                     | 7,386                                                | 5,768                                            | 2,347                                           |
| Other      (loss) gain, net                                                               | (180)                                                | (8,924)                                          | 662                                             |
| Earnings      (loss) from continuing operations before income taxes                       | 35,985                                               | (29,209)                                         | 70,576                                          |
| Income      taxes expense                                                                 | 10,290                                               | 719                                              | 12,174                                          |
| Earnings      (loss) from continuing operations                                           | 25,695                                               | (29,928)                                         | 58,402                                          |
| Earnings      from discontinued operations, net of tax of $0, $0, and    $351             | —                                              | —                                          | 359                                             |
| Net      earnings (loss)                                                                  | 25,695                                               | (29,928)                                         | 58,761                                          |
| Less:      (loss) attributable to noncontrolling interests                                | (447)                                                | (123)                                            | (7)                                             |
| Net      earnings (loss) attributable to Checkpoint Systems, Inc.                         | $       26,142                                  | $      (29,805)                                  | $   58,768                       |
|                                                                                      |                                                 |                                             |                                            |
| Net      earnings (loss) attributable to Checkpoint Systems, Inc. per Common      shares: |                                                 |                                             |                                            |
|                                                                                      |                                                 |                                             |                                            |
| Basic      Earnings (Loss) Per Share:                                                     |                                                 |                                             |                                            |
| Earnings      (loss) from continuing operations                                           | $             .67 | $       (.76) | $       1.46 |
| Earnings      from discontinued operations, net of tax                                    | —                                              | —                                          | .01                                             |
| Basic      Earnings (Loss) Per Share                                                      | $             .67 | $       (.76) | $       1.47 |
|                                                                                      |                                                 |                                             |                                            |
| Diluted      Earnings (Loss) Per Share:                                                   |                                                 |                                             |                                            |
| Earnings      (loss) from continuing operations                                           | $             .66 | $       (.76) | $       1.43 |
| Earnings      from discontinued operations, net of tax                                    | —                                              | —                                          | .01                                             |
| Diluted      Earnings (Loss) Per Share                                                    | $             .66 | $       (.76) | $       1.44 |

----

|                                                                                                      | Checkpoint      Systems, Inc. Stockholders |         |           |
|-----------------------------------------------------------------------------------------------------------|--------------------------------------------|--------------|----------------|
|                                                                                                      | Common      Stock                          | Additional   | Retained       | Treasury      Stock | Accumulated      Other Comprehensive | Noncontrolling | Total |
|                                                                                                      | Shares                                     | Amount       | Capital        | Earnings | Shares | Amount | Income | Interests | Equity |
| Balance,      December 31, 2006                                                                      | 41,315                                     | $      4,131 | $      345,206 | $      146,658 | 2,036 | $      (20,621) | $    (1,793) | $      956 | $      474,537  |
| Net      earnings                                                                                         |                                       |         |           | 58,768 |   |   |   |  (7) | 58,761  |
| Exercise      of stock-based compensation                                                                 | 522                                        | 52           | 6,670          |   |   |   |   |   | 6,722 |
| Tax      benefit on stock-based compensation                                                              |                                       |         | 881            |   |   |   |   |   | 881 |
| Stock-based      compensation expense                                                                     |                                       |         | 6,518          |   |   |   |   |   | 6,518 |
| Deferred      compensation plan                                                                           |                                       |         | 1,409          |   |   |   |   |   | 1,409 |
| Cumulative      effect of adopting a change in accounting for uncertainties in income      taxes (FIN 48) |                                       |         |           | (1,709) |   |   |   |   | (1,709) |
| Amortization      of pension plan actuarial losses, net of tax                                            |                                       |         |           |   |   |   | 130 |   | 130 |
| Unrealized      gain adjustment on marketable securities, net of tax                                      |                                       |         |           |   |   |   | 16 |   | 16 |
| Recognized      gain on pension, net of tax                                                               |                                       |         |           |   |   |   | 6,755 |   | 6,755 |
| Foreign      currency translation adjustment                                                              |                                       |         |           |   |   |   | 35,257 | 28 | 35,285  |
| Balance,      December 30, 2007                                                                           | 41,837                                     | $      4,183 | $      360,684 | $      203,717 | 2,036 | $      (20,621) | $   40,365 | $   977 | $      589,305 |
| Net      (loss)                                                                                           |                                       |         |           | (29,805) |   |   |   | (123) | (29,928) |
| Exercise      of stock-based compensation and awards released                                             | 911                                        | 91           | 8,914          |   |   |   |   |   | 9,005 |
| Tax      benefit on stock-based compensation                                                              |                                       |         | 2,121          |   |   |   |   |   | 2,121 |
| Stock-based      compensation expense                                                                     |                                       |         | 7,096          |   |   |   |   |   | 7,096 |
| Deferred      compensation plan                                                                           |                                       |         | 2,683          |   |   |   |   |   | 2,683 |
| Repurchase      of common stock                                                                           |                                       |         |           |   | 2,000 | (50,899) |   |   | (50,899) |
| Amortization      of pension plan actuarial losses, net of tax                                            |                                       |         |           |   |   |   | 72 |   | 72 |
| Change      in realized and unrealized gains on derivative hedges, net of      tax                        |                                       |         |           |   |   |   | 880 |   | 880 |
| Unrealized      gain adjustment on marketable securities, net of tax                                      |                                       |         |           |   |   |   | (16) |   | (16) |
| Recognized      loss on pension, net of tax                                                               |                                       |         |           |   |   |   | (169) |   | (169) |
| Foreign      currency translation adjustment                                                              |                                       |         |           |   |   |   | (24,982) | 70 | (24,912) |
| Balance,      December 28, 2008                                                                           | 42,748                                     | $      4,274 | $      381,498 | $      173,912 | 4,036 | $      (71,520) | $   16,150 | $   924 | $      505,238 |
| Net      earnings                                                                                         |                                       |         |           | 26,142 |   |   |   | (447) | 25,695 |
| Exercise      of stock-based compensation and awards released                                             | 330                                        | 33           | 812            |   |   |   |   |   | 845 |
| Tax      shortfall on stock-based compensation                                                            |                                       |         | (481)          |   |   |   |   |   | (481) |
| Stock-based      compensation expense                                                                     |                                       |         | 7,135          |   |   |   |   |   | 7,135 |
| Deferred      compensation plan                                                                           |                                       |         | 1,415          |   |   |   |   |   | 1,415 |
| Amortization      of pension plan actuarial losses, net of tax                                            |                                       |         |           |   |   |   | 84 |   | 84 |
| Change      in realized and unrealized gains on derivative hedges, net of      tax                        |                                       |         |           |   |   |   |         (1,182) |   | (1,182) |
| Recognized      gain on pension, net of tax                                                               |                                       |         |           |   |   |   | 1,934 |   | 1,934 |
| Foreign      currency translation adjustment                                                              |                                       |         |           |   |   |   | 11,617 | 357 | 11,974 |
| Balance,      December 27, 2009                                                                           | 43,078                                     | $      4,307 | $      390,379 | $      200,054 | 4,036 | $      (71,520) | $   28,603 | $   834 | $      552,657 |

----

| Year      ended                                                                             | December      27,2009 | December      28,2008 | December      30,2007     |
|---------------------------------------------------------------------------------------------|-----------------------|-----------------------|---------------------------|
| Net      earnings (loss)                                                                    | $      25,695         | $      (29,928)       | $   58,761 |
| Amortization      of pension plan actuarial losses, net of tax                              | 84                    | 72                    | 130                       |
| Change      in realized and unrealized (losses) gains on derivative hedges, net of      tax | (1,182)               | 880                   | —                   |
| Unrealized      gain adjustment on marketable securities, net of tax                        | —               | (16)                  | 16                        |
| Recognized      gain (loss) on pension, net of tax                                     | 1,934                 | (169)                 | 6,755                     |
| Foreign      currency translation adjustment                                                | 11,974                | (24,912)              | 35,285                    |
| Comprehensive      income (loss)                                                            | $      38,505         | $      (54,073)       | $      100,947            |
| Less:      comprehensive (loss) earnings attributable to noncontrolling      interests      | (90)                  | (53)                  | 21                        |
| Comprehensive      income (loss) attributable to Checkpoint Systems,Inc.               | $      38,595         | $      (54,020)       | $      100,926            |

----

| Year      ended                                                                                      | December      27,2009     | December      28,2008       | December      30,2007     |
|------------------------------------------------------------------------------------------------------|---------------------------|-----------------------------|---------------------------|
| Cash      flows from operating activities:                                                           |                      |                        |                      |
| Net      earnings (loss)                                                                             | $   25,695 | $   (29,928) | $   58,761 |
| Adjustments      to reconcile net earnings to net cash provided by operating      activities:        |                      |                        |                      |
| Depreciation      and amortization                                                                   | 32,325                    | 30,788                      | 21,059                    |
| Deferred      taxes                                                                                  | (7,109)                   | (13,716)                    | (7,486)                   |
| Stock-based      compensation                                                                        | 7,135                     | 7,096                       | 6,518                     |
| Excess      tax benefit on stock compensation                                                        | (12)                      | (2,229)                     | (755)                     |
| Provision      for losses on accounts receivable                                                     | (117)                     | 5,810                       | 1,846                     |
| Gain      on sale of discontinued operations                                                         | —                   | —                     | (359)                     |
| Gain      on sale of subsidiaries                                                                    | —                   | (968)                       | (2,523)                   |
| Loss      (gain) on disposal of fixed assets                                                    | 314                       | 276                         | (193)                     |
| Goodwill      impairment                                                                             | —                   | 59,583                      | —                   |
| Asset      impairment                                                                                | —                   | 4,510                       | —                   |
| (Increase)      decrease in current assets, net of the effects of acquired      companies:           |                      |                        |                      |
| Accounts      receivable                                                                             | 27,308                    | (215)                       | (34,186)                  |
| Inventories                                                                                          | 17,078                    | 5,469                       | 2,186                     |
| Other      current assets                                                                            | 8,993                     | 3,920                       | (2,496)                   |
| Increase      (decrease) in current liabilities, net of the effects of acquired      companies: |                      |                        |                      |
| Accounts      payable                                                                                | (6,348)                   | (12,278)                    | 17,958                    |
| Income      taxes                                                                                    | 3,584                     | 5,951                       | (9,144)                   |
| Unearned      revenues                                                                               | 11,654                    | (3,208)                     | 4,229                     |
| Restructuring      reserve                                                                           | 459                       | 546                         | (2,958)                   |
| Other      current and accrued liabilities                                                           | (6,133)                   | 15,799                      | 14,514                    |
| Net      cash provided by operating activities                                                       | 114,826                   | 77,206                      | 66,971                    |
|                                                                                                 |                      |                        |                      |
| Cash      flows from investing activities:                                                           |                      |                        |                      |
| Acquisition      of property, plant, and equipment                                                   | (13,757)                  | (15,217)                    | (13,363)                  |
| Acquisitions      of businesses, net of cash acquired                                                | (25,535)                  | (39,629)                    | (94,522)                  |
| Net      cash (outflow) proceeds from the sale of discontinued      operations                  | —                   | —                     | (2,159)                   |
| Decrease      in restricted cash                                                                     | 516                       | —                     | 2,121                     |
| Other      investing activities                                                                      | 131                       | 142                         | 1,772                     |
| Net      cash (used in) investing activities                                                         | (38,645)                  | (54,704)                    | (106,151)                 |
|                                                                                                 |                      |                        |                      |
| Cash      flows from financing activities:                                                           |                      |                        |                      |
| Proceeds      from stock issuances                                                                   | 845                       | 9,005                       | 7,174                     |
| Excess      tax benefit on stock compensation                                                        | 12                        | 2,229                       | 755                       |
| Proceeds      of short-term debt                                                                     | 11,215                    | 3,582                       | 2,899                     |
| Payment      of short-term debt                                                                      | (12,941)                  | (3,596)                     | (8,950)                   |
| Proceeds      of long-term debt                                                                      | 93,793                    | 105,898                     | 6,177                     |
| Payment      of long-term debt                                                                       | (144,650)                 | (65,813)                    | (891)                     |
| Net      change in factoring and bank overdrafts                                                     | 5,380                     | —                     | —                   |
| Debt      issuance costs                                                                             | (3,970)                   | —                     | —                   |
| Payment      of notes payable                                                                        | —                   | (4,866)                     | —                   |
| Purchase      of treasury stock                                                                      | —                   | (50,899)                    | —                   |
| Net      cash (used in) provided by financing activities                                             | (50,316)                  | (4,460)                     | 7,164                     |
| Effect      of foreign currency rate fluctuations on cash and cash      equivalents                  | 4,010                     | (4,091)                     | 6,893                     |
| Net      increase (decrease) in cash and cash equivalents                                       | 29,875                    | 13,951                      | (25,123)                  |
| Cash      and cash equivalents:                                                                      |                      |                        |                      |
| Beginning      of year                                                                               | 132,222                   | 118,271                     | 143,394                   |
| End      of year                                                                                     | $      162,097            | $      132,222              | $      118,271            |

----

----

----

| (dollar      amounts in thousands)           | December      27,2009    | December      28,2008    |
|----------------------------------------------|--------------------------|--------------------------|
| Balance      at beginning of year            | $   8,403 | $   8,108 |
| Accruals      for warranties issued          | 3,708                    | 6,388                    |
| Settlement      made                         | (6,163)                  | (5,882)                  |
| Acquisitions                                 | —                  | 89                       |
| Foreign      currency translation adjustment | 168                      | (300)                    |
| Balance      at end of year                  | $   6,116 | $   8,403 |

|                                       | Year      Ended,December      27,2009 |   | Year      Ended,December      28,2008 |   | Year      Ended,December      30,2007 |   |
|--------------------------------------------|---------------------------------------|--------|---------------------------------------|--------|---------------------------------------|--------|
| Weighted      average fair value of grants | $      3.59                           |   | $      8.04                           |   | $      8.88                           |   |
| Valuation      assumptions:                |                                  |   |                                  |   |                                  |   |
| Expected      dividend yield               | 0.00                                  | %      | 0.00                                  | %      | 0.00                                  | %      |
| Expected      volatility                   | .4474                                 |   | .3883                                 |   | .3659                                 |   |
| Expected      life (in years)              | 4.86                                  |   | 4.84                                  |   | 4.56                                  |   |
| Risk-free      interest rate               | 1.700                                 | %      | 2.450                                 | %      | 4.264                                 | %      |

----

----

----

----

| (dollar      amounts in thousands)                                  | November      1,2007      |
|--------------------------------------------------------------------------|---------------------------|
| Cash                                                                     | $   67,000 |
| Long-term      debt                                                      | 75,000                    |
| Contingent      payment                                                  | 6,796                     |
| Purchase      price(1)                                                   | 148,796                   |
| Fair      value of net assets acquired:                                  |                      |
| Accounts      receivable                                                 | 6,986                     |
| Inventories                                                              | 6,882                     |
| Other      current assets                                                | 73                        |
| Property,      plant, and equipment                                      | 9,148                     |
| Intangible      assets(2)                                                | 71,053                    |
| Accounts      payable                                                    | (2,526)                   |
| Accrued      compensation and related taxes                              | (810)                     |
| Other      accrued expenses                                              | (799)                     |
| Fair      value of the net assets acquired                               | 90,007                    |
| Excess      cost over net assets acquired                                | 58,789                    |
| Adjustment      to the realization of deferred tax assets for Checkpoint | (59)                      |
| Estimated      acquisition costs                                         | 648                       |
| Goodwill(3)                                                              | $   59,378 |

| (1)   | Represents      the cash, long-term debt, and contingent payment used to finance the      acquisition. |
|-----------------|--------------------------------------------------------------------------------------------------------|

| (2)   | Intangible      assets consist of customer relationships ($33.4 million), trade names      ($19.4 million), and developed technologies ($18.3 million). The      weighted-average useful lives for the customer relationships and developed      technologies are approximately 10 years. The intangible assets      related to the trade name are deemed to have an indefinite life. The      amortization of definite life intangibles are calculated on a      straight-line basis. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3)   | Goodwill      of $59.4 million was assigned to the Shrink Management Solutions      reporting segment. Of that total amount, $59.4 million is expected to      be deductible for tax purposes over a 15 year  period. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (dollar      amounts in thousands)                                                 | Pro      Forma                                  |
|------------------------------------------------------------------------------------|-------------------------------------------------|
| Year      ended                                                                    | December      30,2007                           |
|                                                                               | (Unaudited)                                     |
| Net      revenues                                                                  | $      880,790                                  |
| Earnings      from continuing operations                                           | 58,225                                          |
| Earnings      from discontinued operations, net of tax                             | 359                                             |
| Net      earnings attributable to Checkpoint Systems, Inc.                         | $   58,584                       |
|                                                                               |                                            |
| Net      earnings attributable to Checkpoint Systems, Inc. per Common      Shares: |                                            |
|                                                                               |                                            |
| Basic      Earnings Per Share:                                                     |                                            |
| Earnings      from continuing operations                                           | $       1.46 |
| Earnings      from discontinued operations, net of tax                             | .01                                             |
| Basic      Earnings Per Share                                                      | $       1.47 |
|                                                                               |                                            |
| Diluted      Earnings Per Share:                                                   |                                            |
| Earnings      from continuing operations                                           | $       1.43 |
| Earnings      from discontinued operations, net of tax                             | .01                                             |
| Diluted      Earnings Per Share                                                    | $       1.44 |

----

| (dollar      amounts in thousands) | December      27,2009 | December      28,2008     |
|------------------------------------|-----------------------|---------------------------|
| Raw      materials                 | $      16,274         | $   16,287 |
| Work-in-process                    | 5,721                 | 6,100                     |
| Finished      goods                | 67,252                | 79,735                    |
| Total                              | $      89,247         | $      102,122            |

| (dollar      amounts in thousands)              | December      27,2009                            | December      28,2008                            |
|-------------------------------------------------|--------------------------------------------------|--------------------------------------------------|
| Revenue      equipment on operating lease       |                                             |                                             |
| Equipment      rented to customers              | $     20,659            | $     22,795            |
| Accumulated      depreciation                   | (18,643)                                         | (20,755)                                         |
| Total      revenue equipment on operating lease | $       2,016 | $       2,040 |
|                                            |                                             |                                             |
| Property,      plant, and equipment             |                                             |                                             |
| Land                                            | $       9,803 | $       9,809 |
| Buildings                                       | 67,642                                           | 56,014                                           |
| Machinery      and equipment                    | 163,386                                          | 144,717                                          |
| Leasehold      improvements                     | 16,170                                           | 13,385                                           |
| Construction      in progress                   | 4,532                                            | 3,429                                            |
|                                            | 261,533                                          | 227,354                                          |
| Accumulated      depreciation                   | (143,935)                                        | (140,619)                                        |
| Total      property, plant, and equipment       | $    117,598                 | $     86,735            |

|                                                |                   | December      27, 2009    |                         | December      28, 2008 |
|-----------------------------------------------------|------------------------|---------------------------|------------------------------|------------------------|
| (dollar      amounts in thousands)                  | AmortizableLife(years) | GrossAmount               | GrossAccumulatedAmortization |                   | GrossAmount | GrossAccumulatedAmortization |
| Finite-lived      intangible assets:                |                   |                      |                         |                   |   |   |
|   Customer      lists                     | 6      to 20           | $   82,504 | $   37,660    |                   | $   81,037 | $   31,184 |
|   Trade      name                         | 3      to 30           | 31,420                    | 17,193                       |                   | 30,610 | 16,107 |
|   Patents,      license agreements        | 3      to 14           | 63,267                    | 44,624                       |                   | 60,986 | 40,277 |
|   Other                                   | 3      to 6            | 10,704                    | 5,832                        |                   | 9,700 | 3,140 |
| Total      amortized finite-lived intangible assets |                   | 187,895                   | 105,309                      |                   | 182,333 | 90,708 |
|                                                |                   |                      |                         |                   |   |   |
| Indefinite-lived      intangible assets:            |                   |                      |                         |                   |   |   |
|   Trade      name                         |                   | 22,147                    | —                      |                   | 22,130 | — |
| Total      identifiable intangible assets           |                   | $      210,042            | $      105,309               |                   | $      204,463 | $      90,708 |

| 2010 | $      12,066            |
|------|--------------------------|
| 2011 | $      10,588            |
| 2012 | $   9,787 |
| 2013 | $   8,632 |
| 2014 | $   8,155 |

----

| (dollar      amounts in thousands)                                | ShrinkManagementSolutions | ApparelLabelingSolutions | RetailMerchandisingSolutions | Total                |
|-------------------------------------------------------------------|---------------------------|--------------------------|------------------------------|----------------------|
| Balance      as of December 30, 2007                              | $  191,575      | $   4,683 | $  78,343          | $  274,601 |
|      Acquired      during the year       | 24,130                    | —                  | —                      | 24,130               |
|      Purchase      accounting adjustment | 9,300                     | (174)                    | —                      | 9,126                |
|      Impairment      losses              | (48,219)                  | (3,550)                  | (7,813)                      | (59,582)             |
|      Translation      adjustments        | (7,293)                   | (959)                    | (4,491)                      | (12,743)             |
| Balance      as of December 28, 2008                              | 169,493                   | —                  | 66,039                       | 235,532              |
|      Acquired      during the year       | —                   | 4,278                    | —                      | 4,278                |
|      Purchase      accounting adjustment | 283                       | —                  | —                      | 283                  |
|      Translation      adjustments        | 2,102                     | 22                       | 1,845                        | 3,969                |
| Balance      as of December 27, 2009                              | $  171,878      | $   4,300 | $  67,884          | $  244,062 |

|                                            | December      27, 2009 |                        | December      28, 2008 |
|-------------------------------------------------|------------------------|-----------------------------|------------------------|
|                                            | GrossAmount            | AccumulatedImpairmentLosses | Goodwill,net           |   | GrossAmount | AccumulatedImpairmentLosses | Goodwill,net |
|   Shrink      Management Solutions    | $      229,062         | $   57,184   | $      171,878         |   | $      225,509 | $   56,016 | $      169,493 |
|   Apparel      Labeling Solutions     | 24,052                 | 19,752                      | 4,300                  |   | 19,387 | 19,387 | — |
|   Retail      Merchandising Solutions | 139,859                | 71,975                      | 67,884                 |   | 135,973 | 69,934 | 66,039 |
|   Total      goodwill                 | $      392,973         | $      148,911              | $      244,062         |   | $      380,869 | $      145,337 | $      235,532 |

| (dollar      amounts in thousands)                                       | December      27,2009    | December      28,2008    |
|--------------------------------------------------------------------------|--------------------------|--------------------------|
| Lines      of credit with interest rates ranging from 1.46% to 2.04% (1) | $   6,578 | $   7,707 |
| Asialco      loans                                                       | 3,660                    | 3,645                    |
| Full-recourse      factoring liabilities                                 | 12,089                   | —                  |
| Term      loans                                                          | 1,060                    | —                  |
| Current      portion of long-term debt                                   | 2,385                    | 230                      |
| Total      short-term borrowings and current portion of long-termdebt    | $      25,772            | $      11,582            |

| (1)   | The      weighted average interest rate for 2009 was  1.75%. |
|-----------------|--------------------------------------------------------------|

----

| (dollar      amounts in thousands)                                                            | December      27,2009 | December      28,2008                                                |
|-----------------------------------------------------------------------------------------------|-----------------------|----------------------------------------------------------------------|
| Secured      credit facility:                                                                 |                  |                                                                 |
| $125 million      variable interest rate revolving credit facility maturing in      2012 | $      86,745         | $               — |
| Senior      unsecured credit facility:                                                        |                  |                                                                 |
| $150 million      variable interest rate revolving credit facility maturing in      2010 | —               |         133,596                                            |
| Full-recourse      factoring liabilities                                                      | 2,432                 | —                                                              |
| Other      capital leases with maturities through 2014                                        | 4,308                 | 338                                                                  |
| Total(1)                                                                                      | 93,485                | 133,934                                                              |
| Less      current portion                                                                     | 2,385                 | 230                                                                  |
| Total      long-term portion                                                                  | $      91,100         | $      133,704                                                       |

| (dollar      amounts in thousands) | Debt                                     | CapitalLeases | TotalDebt                      |
|------------------------------------|------------------------------------------|---------------|--------------------------------|
| 2010                               | $      557 | $      1,828  | $    2,385 |
| 2011                               | 441                                      | 1,808         | 2,249                          |
| 2012                               | 87,122                                   | 571           | 87,693                         |
| 2013                               | 378                                      | 73            | 451                            |
| 2014                               | 344                                      | 28            | 372                            |
| Thereafter                         | 335                                      | —       | 335                            |
| Total                              | $      89,177                            | $      4,308  | $      93,485                  |

----

|                                                       | Shares    | Weighted-AverageExercisePrice | Weighted-AverageRemainingContractualTerm(in      years) | AggregateIntrinsicValue(in      thousands) |
|------------------------------------------------------------|-----------|-------------------------------|---------------------------------------------------------|--------------------------------------------|
| Outstanding      at December 28, 2008                 | 2,880,326 | $      18.85                  | 6.42                                                    | $      25    |
| Granted                                                    | 253,102   | 8.89                          |                                                    |                                       |
| Exercised                                                  | (3,495)   | 11.04                         |                                                    |                                       |
| Forfeited      or expired                                  | (82,036)  | 17.48                         |                                                    |                                       |
| Outstanding      at December 27, 2009                 | 3,047,897 | 18.07                         | 5.69                                                    | 4,420                                      |
| Vested      and expected to vest at December 27, 2009 | 2,891,931 | 18.07                         | 5.55                                                    | 4,090                                      |
| Exercisable      at December 27, 2009                 | 2,026,252 | $      17.45                  | 4.38                                                    | $      2,729                               |

----

|                                                       | Shares    | Weighted-AverageVest      Date(in      years) | Weighted-AverageGrant      DateFair      Value |
|------------------------------------------------------------|-----------|-----------------------------------------------|------------------------------------------------|
| Nonvested      at December 28, 2008                   | 552,985   | 1.34                                          | $      36.45                                   |
| Granted                                                    | 204,863   | —                                       | 10.29                                          |
| Vested                                                     | (129,986) | —                                       | 11.71                                          |
| Forfeited                                                  | (13,898)  | —                                       | 21.78                                          |
| Nonvested      at December 27, 2009                   | 613,964   | 1.07                                          | $      39.24                                   |
| Vested      and expected to vest at December 27, 2009 | 530,874   | 0.95                                          |                                           |
| Vested      at December 27, 2009                      | 53,020    | —                                       |                                           |

| (dollar      amounts in thousands)                              | December      27,2009           | December      28,2008           | December      30,2007           |
|-----------------------------------------------------------------|---------------------------------|---------------------------------|---------------------------------|
| Fair      value of tangible assets acquired, less cash acquired | $    52,275 | $    12,492 | $    45,883 |
| Goodwill      and identified intangible assets                  | 5,929                           | 44,246                          | 155,239                         |
| Liabilities      assumed                                        | (32,669)                        | (17,109)                        | (31,600)                        |
| Borrowings      to fund acquisition                             | —                         | —                         | (75,000)                        |
| Cash      paid for acquisitions                                 | $    25,535 | $    39,629 | $   94,522       |

| (dollar      amounts in thousands)                 | 2009                     | 2008                |
|----------------------------------------------------|--------------------------|---------------------|
| Actuarial      losses on pension plans, net of tax | $   (844) | $      (2,862)      |
| Derivative      hedge contracts, net of tax        | (302)                    | 880                 |
| Foreign      currency translation adjustment       | 29,749                   | 18,132              |
| Total                                              | $      28,603            | $  16,150 |

----

| (amounts      in thousands, except per share data)                                                                                     | December      27,2009                                | December      28,2008                            | December      30,2007                     |
|----------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------|--------------------------------------------------|-------------------------------------------|
| Basic      earnings (loss) attributable to Checkpoint Systems, Inc. available to      common stockholders from continuing operations   | $      26,142                                        | $      (29,805)                                  | $      58,409                             |
| Diluted      earnings (loss) attributable to Checkpoint Systems, Inc. available to      common stockholders from continuing operations | $      26,142                                        | $      (29,805)                                  | $      58,409                             |
|                                                                                                                                   |                                                 |                                             |                                      |
| Shares:                                                                                                                                |                                                 |                                             |                                      |
| Weighted      average number of common shares outstanding                                                                              | 38,909                                               | 39,071                                           | 39,550                                    |
| Shares      issuable under deferred compensation agreements                                                                            | 396                                                  | 337                                              | 311                                       |
| Basic      weighted average number of common shares outstanding                                                                        | 39,305                                               | 39,408                                           | 39,861                                    |
| Common      shares assumed upon exercise of stock options and awards                                                                   | 234                                                  | —                                          | 853                                       |
| Shares      issuable under deferred compensation arrangements                                                                          | 13                                                   | —                                          | 10                                        |
| Dilutive      weighted average number of common shares outstanding                                                                     | 39,552                                               | 39,408                                           | 40,724                                    |
|                                                                                                                                   |                                                 |                                             |                                      |
| Basic      Earnings (Loss) Attributable to Checkpoint Systems, Inc. per      Share:                                                    |                                                 |                                             |                                      |
| Earnings      (loss) from continuing operations                                                                                        | $        .67 | $       (.76) | $      1.46 |
| Earnings      from discontinued operations, net of tax                                                                                 | —                                              | —                                          | .01                                       |
| Basic      earnings (loss) attributable to Checkpoint Systems, Inc. per      share                                                     | $        .67 | $       (.76) | $      1.47 |
|                                                                                                                                   |                                                 |                                             |                                      |
| Diluted      Earnings (Loss) Attributable to Checkpoint Systems, Inc. per      Share:                                                  |                                                 |                                             |                                      |
| Earnings      (loss) from continuing operations                                                                                        | $        .66 | $       (.76) | $      1.43 |
| Earnings      from discontinued operations, net of tax                                                                                 | —                                              | —                                          | .01                                       |
| Diluted      earnings (loss) attributable to Checkpoint Systems, Inc. per      share                                                   | $        .66 | $       (.76) | $      1.44 |

| (share      amounts in thousands)                                                                                                                                                | December      27,2009 | December      28,2008 | December      30,2007 |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------|-----------------------|-----------------------|
| Weighted      average common share equivalents associated with anti-dilutive stock      options and restricted stock units excluded from the computation of      diluted EPS(1): | 2,507                 | 2,151                 | 524                   |

| (1)   | Adjustments      for stock options and awards of 518 shares and deferred compensation      arrangements of 22 shares were anti-dilutive in fiscal 2008 and therefore      excluded from the earnings per share calculation due to our net loss for      the year. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (dollar      amounts in thousands) | 2009                            | 2008            | 2007                     |
|------------------------------------|---------------------------------|-----------------|--------------------------|
| Domestic                           | $      (20,473)                 | $      (16,448) | $   4,730 |
| Foreign                            | 56,458                          | (12,761)        | 65,846                   |
| Total                              | $    35,985 | $      (29,209) | $      70,576            |

| (dollar      amounts in thousands) | 2009                 | 2008                                                                  | 2007                      |
|------------------------------------|----------------------|-----------------------------------------------------------------------|---------------------------|
| Currently      payable             |                 |                                                                  |                      |
| Federal                            | $  (2,565) | $           36 | $  (1,240)      |
| State                              | (41)                 | 12                                                                    | 981                       |
| Puerto      Rico                   | 45                   | 243                                                                   | 1,058                     |
| Foreign                            | 20,555               | 11,826                                                                | 18,255                    |
| Total      currently payable       | 17,994               | 12,117                                                                | 19,054                    |
|                               |                 |                                                                  |                      |
| Deferred                           |                 |                                                                  |                      |
| Federal                            | (9,042)              | (4,259)                                                               | (80)                      |
| State                              | (1,050)              | 902                                                                   | (5,493)                   |
| Puerto      Rico                   | 540                  | 12                                                                    | (9)                       |
| Foreign                            | 1,848                | (8,053)                                                               | (1,298)                   |
| Total      deferred                | (7,704)              | (11,398)                                                              | (6,880)                   |
| Total      provision               | $  10,290  | $         719            | $   12,174 |

----

| (dollar      amounts in thousands)                           | December      27,2009                      | December      28,2008                      |
|--------------------------------------------------------------|--------------------------------------------|--------------------------------------------|
| Inventory                                                    | $      4,613 | $      6,650 |
| Accounts      receivable                                     | 2,449                                      | 2,158                                      |
| Capitalized      research and development costs              | 9,265                                      | 3,161                                      |
| Net      operating loss and foreign tax credit carryforwards | 59,770                                     | 53,635                                     |
| Restructuring                                                | 788                                        | 31                                         |
| Deferred      revenue                                        | 686                                        | 1,345                                      |
| Pension                                                      | 5,957                                      | 6,555                                      |
| Warranty                                                     | 1,381                                      | 2,171                                      |
| Deferred      compensation                                   | 3,483                                      | 1,712                                      |
| Stock      based compensation                                | 5,064                                      | 3,885                                      |
| Valuation      allowance                                     | (32,739)                                   | (22,717)                                   |
| Deferred      tax assets                                     | 60,717                                     | 58,586                                     |
| Depreciation                                                 | (753)                                      | (28)                                       |
| Intangibles                                                  | 10,978                                     | 10,993                                     |
| Other                                                        | (3,058)                                    | (1,095)                                    |
| Withholding      tax liabilities                             | 945                                        | 945                                        |
| Deferred      tax liabilities                                | 8,112                                      | 10,815                                     |
| Net      deferred tax assets                                 | $    52,605            | $    47,771            |

| Expiration                 | Federal                                            | State                          | International                        | Total                                |
|----------------------------|----------------------------------------------------|--------------------------------|--------------------------------------|--------------------------------------|
| 2009      — 2016     | $       — | $    3,100 | $     2,752 | $     5,852 |
| 2017      — 2023     | —                                            | 2,444                          | 2,130                                | 4,574                                |
| 2024      — 2029     | 6,868                                              | 1,675                          | —                              | 8,543                                |
| Indefinite      life       | —                                            | —                        | 28,375                               | 28,375                               |
| Deferred      tax asset    | 6,868                                              | 7,219                          | 33,257                               | 47,344                               |
| Valuation      allowance   | —                                            | (5,199)                        | (24,214)                             | (29,413)                             |
| Net      deferred position | $      6,868                                       | $    2,020 | $     9,043 | $   17,931            |

| (dollar      amounts in thousands)                          | 2009                | 2008                                                 | 2007                      |
|-------------------------------------------------------------|---------------------|------------------------------------------------------|---------------------------|
| Tax      provision at the statutory Federal income tax rate | $      12,595       | $      (10,222)                                      | $   24,702 |
| Non-deductible      goodwill                                | —             | 20,994                                               | —                   |
| Non-deductible      permanent items                         | 1,302               | 1,258                                                | (165)                     |
| State      and local income taxes, net of Federal benefit   | (1,077)             | 207                                                  | 634                       |
| Foreign      losses for which no tax benefit recognized     | 4,104               | 3,122                                                | 1,348                     |
| Foreign      rate differentials                             | (9,346)             | (13,356)                                             | (12,028)                  |
| Tax      settlements                                        | (20)                | 730                                                  | —                   |
| Potential      tax contingencies                            | (72)                | 1,214                                                | 1,984                     |
| Change      in valuation allowance                          | 3,515               | (3,574)                                              | (4,527)                   |
| Stock      based compensation                               | 349                 | 365                                                  | 384                       |
| Other                                                       | (1,060)             | (19)                                                 | (158)                     |
| Tax      provision at the effective tax rate                | $  10,290 | $        719 | $   12,174 |

----

| (dollar      amounts in thousands)                        | December      27,2009 | December      28,2008 | December      30,2007 |
|-----------------------------------------------------------|-----------------------|-----------------------|-----------------------|
| Gross      unrecognized tax benefits at beginning of year | $  12,520   | $      12,714         | $      10,197         |
| Increases      in tax positions for prior years           | 2,502                 | —               | 384                   |
| Decreases      in tax positions for prior years           | (1,684)               | (966)                 | —               |
| Increases      in tax positions for current year          | 1,442                 | 1,843                 | 1,128                 |
| Settlements                                               | —               | (965)                 | —               |
| Acquisition      reserves                                 | 2,631                 | —               | 1,063                 |
| Lapse      in statute of limitations                      | (2,527)               | (106)                 | (58)                  |
| Gross      unrecognized tax benefits at end of year       | $  14,884   | $      12,520         | $      12,714         |

| (dollar      amounts in thousands) | December      27,2009                          | December      28,2008                          |
|------------------------------------|------------------------------------------------|------------------------------------------------|
| Transition      obligation         | $       351 | $       473 |
| Prior      service costs           | 21                                             | 23                                             |
| Actuarial      losses              | 2,806                                          | 5,441                                          |
| Total                              | 3,178                                          | 5,937                                          |
| Deferred      tax                  | (2,334)                                        | (3,075)                                        |
| Net                                | $       844 | $    2,862                 |

| (dollar      amounts in thousands) | December      26,2010 |
|------------------------------------|-----------------------|
| Transition      obligation         | $  134      |
| Prior      service costs           | 3                     |
| Actuarial      gain                | (26)                  |
| Total                              | $  111      |

----

| (dollar      amounts in thousands)         | 2009         | 2008         | 2007               |
|--------------------------------------------|--------------|--------------|--------------------|
| Service      cost                          | $      1,020 | $      1,088 | $  1,420 |
| Interest      cost                         | 4,643        | 4,623        | 4,094              |
| Expected      return on plan assets        | (67)         | (72)         | (144)              |
| Amortization      of actuarial (gain) loss | (10)         | (44)         | 477                |
| Amortization      of transition obligation | 130          | 137          | 128                |
| Amortization      of prior service costs   | 3            | 2            | 2                  |
| Net      periodic pension cost             | 5,719        | 5,734        | 5,977              |
| Settlement      gain                       | —      | (37)         | (462)              |
| Total      pension expense                 | $      5,719 | $      5,697 | $  5,515 |

| (dollar      amounts in thousands)                  | December      27,2009                      | December      28,2008                |
|-----------------------------------------------------|--------------------------------------------|--------------------------------------|
| Change      in benefit obligation                   |                                       |                                 |
| Net      benefit obligation at beginning of year    | $   83,478                  | $   86,340            |
| Service      cost                                   | 1,020                                      | 1,088                                |
| Interest      cost                                  | 4,643                                      | 4,623                                |
| Actuarial      gain                                 | (3,147)                                    | (60)                                 |
| Gross      benefits paid                            | (4,449)                                    | (4,366)                              |
| Plan      settlements                               | —                                    | (37)                                 |
| Foreign      currency exchange rate changes         | 2,089                                      | (4,110)                              |
| Net      benefit obligation at end of year          | $   83,634                  | $   83,478            |
|                                                |                                       |                                 |
| Change      in plan assets                          |                                       |                                 |
| Fair      value of plan assets at beginning of year | $     1,550       | $     1,454 |
| Actual      return on assets                        | (383)                                      | (196)                                |
| Employer      contributions                         | 4,648                                      | 4,734                                |
| Gross      benefits paid                            | (4,449)                                    | (4,366)                              |
| Foreign      currency exchange rate changes         | 34                                         | (76)                                 |
| Fair      value of plan assets at end of year       | $           1,400 | $     1,550 |
|                                                |                                       |                                 |
| Reconciliation      of funded status                |                                       |                                 |
| Funded      status at end of year                   | $      (82,234)                            | $      (81,928)                      |

| (dollar      amounts in thousands)                                                                      | December      27,2009                                                | December      28,2008                                    |
|---------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------|----------------------------------------------------------|
| Amounts      recognized in accrued benefit consist of:                                                  |                                                                 |                                                     |
| Accrued      pensions — current                                                                   | $   4,613                                             | $   4,305                                 |
| Accrued      pensions                                                                                   | 77,621                                                               | 77,623                                                   |
| Net      amount recognized at end of year                                                               | $      82,234                                                        | $      81,928                                            |
| Other      comprehensive income attributable to change in additional minimum      liability recognition | $               — | $        — |
| Accumulated      benefit obligation at end of year                                                      | $      79,949                                                        | $      79,165                                            |

| (dollar      amounts in thousands)  | December      27,2009    | December      28,2008    |
|-------------------------------------|--------------------------|--------------------------|
| Projected      benefit obligation   | $      83,634            | $      83,478            |
| Accumulated      benefit obligation | $      79,949            | $      79,165            |
| Fair      value of plan assets      | $   1,400 | $   1,550 |

|                                                                            | December      27,2009  |   | December      28,2008  |   |
|---------------------------------------------------------------------------------|------------------------|--------|------------------------|--------|
| Weighted      average assumptions for year-end benefit obligations:             |                   |   |                   |   |
| Discount      rate (1)                                                          | 5.77                   | %      | 5.75                   | %      |
| Expected      rate of increase in future compensation levels                    | 2.52                   | %      | 2.77                   | %      |
| Weighted      average assumptions for net periodic benefit cost    development: |                   |   |                   |   |
| Discount      rate (1)                                                          | 5.75                   | %      | 5.50                   | %      |
| Expected      rate of return on plan assets                                     | 3.75                   | %      | 4.25                   | %      |
| Expected      rate of increase in future compensation levels                    | 2.77                   | %      | 2.52                   | %      |
| Measurement      Date:                                                          | December      31, 2009 |   | December      31, 2008 |   |

| (1)   | Represents      the weighted average rate for all pensionplans. |
|-----------------|-----------------------------------------------------------------|

| 2010                   | $   4,682 |
|------------------------|--------------------------|
| 2011                   | $   4,987 |
| 2012                   | $   4,891 |
| 2013                   | $   5,214 |
| 2014                   | $   5,160 |
| 2015      through 2019 | $      27,549            |

----

|                         | Total      FairValueMeasurementDecember      27,2009 | QuotedPricesIn      ActiveMarkets      forIdenticalAssets(Level      1) | SignificantOtherObservableInputs(Level      2) | SignificantUnobservableInputs(Level      3) |
|------------------------------|------------------------------------------------------|-------------------------------------------------------------------------|------------------------------------------------|---------------------------------------------|
| Global      insurance assets | $    1,400                       | $      —                                                          | $      —                                 | $      1,400                                |
| Total      assets            | $    1,400                       | $      —                                                          | $      —                                 | $      1,400                                |

|                         | Balance      as ofDecember      28,2008 | Actual      Returnon      Plan Assets, relating      toAssets      Still Heldat      the ReportingDate | Actual      Returnon      Plan Assets,Relating      toAssets      SoldDuring      thePeriod | Purchases,Sales      andSettlements | Transferinto      / (out of)Level      3 | Change      due toExchange      RateChanges | Balance      as ofDecember      27,2009 |
|------------------------------|-----------------------------------------|-------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------|-------------------------------------|------------------------------------------|---------------------------------------------|-----------------------------------------|
|                         |                                    |                                                                                                        |                                                                                        |                                |                                     |                                        |                                    |
| Asset      Category          |                                    |                                                                                                        |                                                                                        |                                |                                     |                                        |                                    |
| Global      insurance assets | $       1,550                      | $       (226)                                                                                          | $        (99)                                                                     | $       141                    | $       —                     | $      34                                   | $       1,400                      |
| Total      Level 3 Assets    | $      1,550                            | $      (226)                                                                                                | $  (99)                                                                           | $      141                          | $      —                           | $      34                                   | $      1,400                            |

|   | Level      1 | Inputs      are quoted prices in active markets for identical assets or      liabilities.                                                                                                                                                                                                                                                                              |
|--------|--------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |         |                                                                                                                                                                                                                                                                                                                                                                   |
|   | Level      2 | Inputs      are quoted prices for similar assets or liabilities in an active market,      quoted prices for identical or similar assets or liabilities in markets      that are not active, inputs other than quoted prices that are observable      and market-corroborated inputs which are derived principally from or      corroborated by observable market data. |
|   |         |                                                                                                                                                                                                                                                                                                                                                                   |
|   | Level      3 | Inputs      are derived from valuation techniques in which one or more significant      inputs or value drivers areunobservable.                                                                                                                                                                                                                                       |

|                                             | Total      FairValueMeasurementDecember      27,2009 | QuotedPricesIn      ActiveMarkets      forIdenticalAssets(Level      1) | SignificantOtherObservableInputs(Level      2) | SignificantUnobservableInputs(Level      3) |
|--------------------------------------------------|------------------------------------------------------|-------------------------------------------------------------------------|------------------------------------------------|---------------------------------------------|
| Foreign      currency forward exchange contracts | $   56                                | $      —                                                          | $   56                          | $      —                              |
| Foreign      currency revenue forecast contracts | 303                                                  | —                                                                 | 303                                            | —                                     |
| Total      assets                                | $      359                                           | $      —                                                          | $      359                                     | $      —                              |
|                                             |                                                 |                                                                    |                                           |                                        |
| Foreign      currency forward exchange contracts | $      191                                           | $      —                                                          | $      191                                     | $      —                              |
| Foreign      currency revenue forecast contracts | 132                                                  | —                                                                 | 132                                            | —                                     |
| Interest      rate swap                          | 171                                                  | —                                                                 | 171                                            | —                                     |
| Total      liabilities                           | $      494                                           | $      —                                                          | $      494                                     | $      —                              |

|                                             | Total      FairValueMeasurementDecember      28,2008 | QuotedPricesIn      ActiveMarkets      forIdenticalAssets (Level      1) | SignificantOtherObservableInputs(Level      2) | SignificantUnobservableInputs(Level      3) |
|--------------------------------------------------|------------------------------------------------------|-------------------------------------------------------------------------------|------------------------------------------------|---------------------------------------------|
| Foreign      currency forward exchange contracts | $      10              | $      —                                                                | $       10  | $      —                              |
| Foreign      currency revenue forecast contracts | 263                                                  | —                                                                       | 263                                            | —                                     |
| Total      assets                                | $    273                         | $      —                                                                | $     273             | $      —                              |
|                                             |                                                 |                                                                          |                                           |                                        |
| Foreign      currency forward exchange contracts | $    911                         | $      —                                                                | $    911                   | $      —                              |
| Foreign      currency revenue forecast contracts | 311                                                  | —                                                                       | 311                                            | —                                     |
| Interest      rate swap                          | 916                                                  | —                                                                       | 916                                            | —                                     |
| Total      liabilities                           | $      2,138                                         | $      —                                                                | $      2,138                                   | $      —                              |

----

| (dollar      amounts in thousands)          | December      27,2009                          | December      28,2008                              |
|---------------------------------------------|------------------------------------------------|----------------------------------------------------|
| Beginning      balance, net of tax          | $       880 | $       — |
| Changes      in fair value gain, net of tax | 477                                            | 1,508                                              |
| Reclass      to earnings, net of tax        | (1,659)                                        | (628)                                              |
| Ending      balance, net of tax             | $    (302)                 | $     880                 |

|                                                                                | December      27, 2009 |                     | December      28, 2008 |
|-------------------------------------------------------------------------------------|------------------------|--------------------------|------------------------|
| (dollar amounts in thousands)                                                       | CarryingAmount         | EstimatedFair      Value |                   | CarryingAmount | EstimatedFair      Value |
| Long-term      debt (including current maturities and excluding capital leases) (1) | $      89,177          | $      89,177            |                   | $      133,596 | $      133,596 |

| (1)   | The      carrying amounts are reported on the balance sheet under the indicated      captions. |
|-----------------|------------------------------------------------------------------------------------------------|

|                                                         | December      27, 2009    |                       | December      28, 2008         |
|--------------------------------------------------------------|---------------------------|----------------------------|--------------------------------|
|                                                         | Asset      Derivatives    | Liability      Derivatives |                           | Asset      Derivatives | Liability      Derivatives |
|                                                         | BalanceSheetLocation      | FairValue                  | BalanceSheetLocation           | FairValue |   | BalanceSheetLocation | FairValue | BalanceSheetLocation | FairValue |
|                                                         |                      |                       |                           |   |   |   |   |   |   |
| Derivatives      designated as hedging instruments           |                      |                       |                           |   |   |   |   |   |   |
| Foreign      currency revenue forecast contracts             | Other      current assets | $      303                 | Other      current liabilities | $      132 |   | Other      current assets | $      263 | Other      current liabilities | $    311 |
| Interest      rate swap contracts                            | Other      current assets | —                    | Other      current liabilities | 171 |   | Other      current assets | — | Other      long-term liabilities | 916 |
| Total      derivatives designated as hedging instruments     |                      | 303                        |                           | 303 |   |   | 263 |   | 1,227 |
|                                                         |                      |                       |                           |   |   |   |   |   |   |
| Derivatives      not designated as hedging instruments       |                      |                       |                           |   |   |   |   |   |   |
| Foreign      currency forward exchange contracts             | Other      current assets | 56                         | Other      current liabilities | 191 |   | Other      current assets | 10 | Other      current liabilities | 911 |
| Total      derivatives not designated as hedging instruments |                      | 56                         |                           | 191 |   |   | 10 |   | 911 |
| Total      derivatives                                       |                      | $      359                 |                           | $      494 |   |   | $      273 |   | $      2,138 |

----

|                                             | December      27, 2009                                                                            |                                                                                                | December      28, 2008                                                                                        |
|--------------------------------------------------|---------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------|
|                                             | Amount of Gain      (Loss)Recognizedin      OtherComprehensiveIncome      onDerivatives | Location      ofGain      (Loss)ReclassifiedFromAccumulatedOtherComprehensiveIncome      intoIncome | Amount of Gain      (Loss)ReclassifiedFromAccumulatedOtherComprehensiveIncome into Income | Amount      ofForwardPointsRecognizedinOther      Gain(Loss),      net  |   | Amount of Gain      (Loss)Recognizedin      OtherComprehensiveIncome      onDerivatives | Location      ofGain      (Loss)ReclassifiedFromAccumulatedOtherComprehensiveIncome      intoIncome | Amount of Gain      (Loss)ReclassifiedFromAccumulatedOtherComprehensiveIncome into Income | Amount      ofForwardPointsRecognizedinOther      Gain(Loss),      net  |
|                                             |                                                                                              |                                                                                                |                                                                                                          |   |   |   |   |   |   |
| Derivatives      designated as cash flow hedges  |                                                                                              |                                                                                                |                                                                                                          |   |   |   |   |   |   |
| Foreign      currency revenue forecast contracts | $       (21)                                                                                 | Cost      of sales                                                                                  | $   1,693                                                                                      | $       (77) |   | $       2,114 | Cost      of sales | $  640 | $       (206) |
| Interest      rate swap contracts                | 744                                                                                               | Interest      expense                                                                               | (1,073)                                                                                                       | — |   | (916) | Interest      expense | (138) | — |
| Total      designated cash flow hedges           | $      723                                                                                        |                                                                                                | $     620                                                                            | $      (77) |   | $      1,198 |   | $      502 | $      (206) |

|                                                   | December      27, 2009                                                    |                                                                        | December      28, 2008 |
|--------------------------------------------------------|---------------------------------------------------------------------------|-----------------------------------------------------------------------------|------------------------|
|                                                   | Amount      ofGain      (Loss)Recognized      inIncome      onDerivatives | Location      ofGain      (Loss)Recognized      inIncome      onDerivatives |                   | Amount      ofGain      (Loss)Recognized      inIncome      onDerivatives | Location      ofGain(Loss)Recognized      inIncome      onDerivatives |
| Derivatives      not designated as hedging instruments |                                                                      |                                                                        |                   |   |   |
| Foreign      exchange forwards and options             | $      (257)                                                              | Other      gain(loss),      net                                             |                   | $      1,072 | Other      gain(loss),      net |

----

|                                              | December      27,2009 | December      28,2008                        | December      30,2007                              |
|---------------------------------------------------|-----------------------|----------------------------------------------|----------------------------------------------------|
|                                              |                  |                                         |                                               |
| SG&A      Restructuring Plan                  |                  |                                         |                                               |
| Severance      and other employee-related charges | $      2,828          | $      — | $       — |
| Manufacturing      Restructuring Plan             |                  |                                         |                                               |
| Severance      and other employee-related charges | 1,481                 | 699                                          | —                                            |
| Consulting      fees                              | —               | 838                                          | —                                            |
| 2005      Restructuring Plan                      |                  |                                         |                                               |
| Severance      and other employee-related charges | 1,149                 | 4,563                                        | 1,215                                              |
| Lease      termination costs                      | (57)                  | —                                      | 2,051                                              |
| Acquisition      integration costs                | —               | 519                                          | —                                            |
| Pension      curtailment                          | —               | —                                      | (420)                                              |
| 2003      Restructuring Plan                      |                  |                                         |                                               |
| Severance      and other employee-related charges | —               | (253)                                        | (145)                                              |
| Lease      termination costs                      | —               | 76                                           | —                                            |
| Total                                             | $      5,401          | $      6,442                                 | $      2,701                                       |

| Fiscal      2009                                  | Accrual      atBeginning      ofYear         | Charged      toEarnings | ChargeReversed      toEarnings               | CashPayments             | Other                                  | ExchangeRateChanges   | Accrual      at12/27/2009 |
|---------------------------------------------------|----------------------------------------------|-------------------------|----------------------------------------------|--------------------------|----------------------------------------|-----------------------|---------------------------|
| SG&A      Restructuring Plan                  |                                         |                    |                                         |                     |                                   |                  |                      |
| Severance      and other employee-related charges | $      — | $      2,828            | $      — | $   (103) | $     — | $   85 | $      2,810              |
| Manufacturing      Restructuring Plan             |                                         |                    |                                         |                     |                                   |                  |                      |
| Severance      and other employee-related charges |    652                        | 1,614                   | (133)                                        |    (676)  |      —  |   24        | 1,481                     |
| 2005      Restructuring Plan                      |                                         |                    |                                         |                     |                                   |                  |                      |
| Severance      and other employee-related charges | 3,302                                        | 1,500                   | (351)                                        | (4,132)                  | —                                | —               | 319                       |
| Acquisition      restructuring costs (1)          | 568                                          | —                 | —                                      | (142)                    | (322)                                  | (17)                  | 87                        |
| Total                                             | $      4,522                                 | $      5,942            | $      (484)                                 | $      (5,053)           | $      (322)                           | $   92 | $      4,697              |

| Fiscal      2008                                  | Accrual      atBeginning      ofYear         | Charged      toEarnings      | ChargeReversed      toEarnings | CashPayments                              | Other                | ExchangeRateChanges | Accrual      at12/28/2008    |
|---------------------------------------------------|----------------------------------------------|------------------------------|--------------------------------|-------------------------------------------|----------------------|---------------------|------------------------------|
| Manufacturing      Restructuring Plan             |                                         |                         |                           |                                      |                 |                |                         |
| Severance      and other employee-related charges | $      — | $    701 | $    (2)   | $      (37) | $  — | $  (10)   | $    652 |
| 2005      Restructuring Plan                      |                                         |                         |                           |                                      |                 |                |                         |
| Severance      and other employee-related charges | 3,015                                        | 5,362                        | (799)                          | (4,141)                                   | —              | (135)               | 3,302                        |
| Acquisition      restructuring costs (1)          | 1,209                                        | —                      | —                        | (612)                                     | —              | (29)                | 568                          |
| Total                                             | $      4,224                                 | $      6,063                 | $      (801)                   | $      (4,790)                            | $  — | $      (174)        | $      4,522                 |

| (1)   | During      2007, restructuring costs of $1.2 million included as a cost of the      SIDEP acquisition ($1.1 million related to employee severance and      $0.1 million related to the cost to abandon facilities) were      accounted for under Emerging Issues Task Force Issue No. 95-3      “Recognition of Liabilities in Connection with Purchase Business      Combinations.” These costs were recognized as an assumed liability in the      acquisition and were included in the purchase price allocation at      November 9, 2007. During 2009, $0.3 million of the acquisition      restructuring liability was reversed related to the SIDEP      acquisition. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (dollar      amounts in thousands)           | CapitalLeases | OperatingLeases | Total         |
|----------------------------------------------|---------------|-----------------|---------------|
| 2010                                         | $      1,997  | $      15,217   | $      17,214 |
| 2011                                         | 1,877         | 9,099           | 10,976        |
| 2012                                         | 583           | 6,527           | 7,110         |
| 2013                                         | 77            | 3,444           | 3,521         |
| 2014                                         | 30            | 2,898           | 2,928         |
| Thereafter                                   | —       | 889             | 889           |
| Total      minimum lease payments            | 4,564         | $      38,074   | $      42,638 |
| Less:      amounts representing interest     | 256           |            |          |
| Present      value of minimum lease payments | $      4,308  |            |          |

----

| i.   | Shrink      Management Solutions — includes electronic article surveillance      (EAS) systems, EAS consumables , Alpha, CheckView™, and radio      frequency identification (RFID) tags and  labels, |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ii.   | Apparel      Labeling Solutions — includes our web-enabled apparel labeling solutions      platform and network of service bureaus to manage the printing of variable      information on price and promotional tickets,  adhesive      labels,  fabric and woven tags and labels, and apparel branding      tags. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| iii.   | Retail      Merchandising Solutions — includes hand-held labeling systems      (HLS) and retail display systems(RDS). |
|------------------|----------------------------------------------------------------------------------------------------------------------------------|

| (A)   | Business      Segments  |
|-----------------|------------------------------|

| (dollar      amounts in thousands)                                  | 2009                                        | 2008                             | 2007                                              |
|---------------------------------------------------------------------|---------------------------------------------|----------------------------------|---------------------------------------------------|
| Business      segment net revenue:                                  |                                        |                             |                                              |
| Shrink      Management Solutions                                    | $    553,700            | $   687,352       | $     611,227            |
| Apparel      Labeling Solutions                                     | 141,910                                     | 135,350                          | 126,581                                           |
| Retail      Merchandising Solutions                                 | 77,108                                      | 94,380                           | 96,348                                            |
| Total                                                               | $    772,718            | $   917,082       | $     834,156            |
|                                                                |                                        |                             |                                              |
| Business      segment gross profit:                                 |                                        |                             |                                              |
| Shrink      Management Solutions                                    | $    242,096            | $   284,428       | $     255,733            |
| Apparel      Labeling Solutions                                     | 52,543                                      | 47,008                           | 44,133                                            |
| Retail      Merchandising Solutions                                 | 36,645                                      | 46,663                           | 46,106                                            |
| Total      gross profit                                             | 331,284                                     | 378,099                          | 345,972                                           |
| Operating      expenses                                             | 289,704(1)                                  | 395,276(2)                       | 279,154(3)                                        |
| Interest      (expense) income, net                            | (5,415)                                     | (3,108)                          | 3,096                                             |
| Other      (loss) gain, net                                    | (180)                                       | (8,924)                          | 662                                               |
| Earnings      (loss) from continuing operations before income taxes | $      35,985 | $   (29,209)      | $       70,576 |
| Business      segment total assets:                                 |                                        |                             |                                              |
| Shrink      Management Solutions                                    | $    725,579            | $    728,010 |                                              |
| Apparel      Labeling Solutions                                     | 158,677                                     | 126,285                          |                                              |
| Retail      Merchandising Solutions                                 | 134,080                                     | 131,421                          |                                              |
| Total                                                               | $      1,018,336                            | $    985,716 |                                              |

| (1)   | Includes      a $5.4 million restructuring charge and a $1.3 million      litigation settlement charge. |
|-----------------|-------------------------------------------------------------------------------------------------------------------|

| (2)   | Includes      a $59.6 million goodwill impairment charge, $6.4 million      restructuring charge, a $6.2 million litigation settlement charge, a      $3.0 million intangible asset impairment charge, a $1.5 million      fixed asset impairment charge, and a $1.0 million gain from the sale      of our Czech subsidiary. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3)   | Includes      a $2.7 million restructuring charge, a $4.4 million charge      related to our CEO transition, and a $2.6 million gain from the sale      of our Austria subsidiary. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (B)   | Geographic      Information |
|-----------------|-----------------------------|

| (dollar      amounts in thousands)            | United      States,Puerto      Rico, &Dominican      Republic | Europe                          | InternationalAmericas          | AsiaPacific                     | Total                           |
|-----------------------------------------------|-------------------------------------------------------------------|---------------------------------|--------------------------------|---------------------------------|---------------------------------|
| 2009                                          |                                                              |                            |                           |                            |                            |
| Net      revenues from unaffiliated customers | $      264,773                                                    | $      362,639                  | $      30,289                  | $      115,017                  | $      772,718                  |
| Gross      profit                             | $      113,801                                                    | $      148,066                  | $      12,352                  | $   57,065       | $      331,284                  |
| Long-lived      assets                        | $   35,347                                         | $   19,432       | $   1,789       | $   63,046       | $      119,614                  |
|                                          |                                                              |                            |                           |                            |                            |
| 2008                                          |                                                              |                            |                           |                            |                            |
| Net      revenues from unaffiliated customers | $  319,929                                              | $  438,011            | $  35,433            | $  123,709            | $  917,082            |
| Gross      profit                             | $  143,795                                              | $  168,013            | $  14,529            | $    51,762 | $  378,099            |
| Long-lived      assets                        | $    36,194                                   | $    20,969 | $    1,724 | $    29,888 | $    88,775 |
|                                          |                                                              |                            |                           |                            |                            |
| 2007                                          |                                                              |                            |                           |                            |                            |
| Net      revenues from unaffiliated customers | $  275,212                                              | $  412,416            | $  37,125            | $  109,403            | $  834,156            |
| Gross      profit                             | $  122,630                                              | $  161,457            | $  12,462            | $    49,423 | $  345,972            |

----

|  (dollar      amounts in thousands, except per share data)                   | QUARTERS      (unaudited)                                   |   |                                                             |
|-----------------------------------------------------------------------------------|------------------------------------------------------------------|--------|------------------------------------------------------------------|
|                                                                              | First                                                            |   | Second                                                           |   | Third |   | Fourth |   | Year |
| 2009                                                                              |                                                             |   |                                                             |   |   |   |   |   |   |
| Net      revenues                                                                 | $      158,950                                                   |   | $      181,913                                                   |   | $      194,078 |   | $      237,777 |   | $      772,718 |
| Gross      profit                                                                 | 66,530                                                           |   | 77,691                                                           |   | 84,674 |   | 102,389 |   | 331,284 |
| Net      (loss) earnings attributable to Checkpoint Systems, Inc.                 | (2,006)                                                          | (1)    | 6,930                                                            | (2) | 2,639 | (3) | 18,579 | (4) | 26,142 |
| Net      (loss) earnings attributable to Checkpoint Systems, Inc. per      share: |                                                             |   |                                                             |   |   |   |   |   |   |
| Basic                                                                             | $       (.05)                 |   | $         .18       |   | $          .07 |   | $         .47 |   | $         .67 |
| Diluted                                                                           | $       (.05)                 |   | $         .18       |   | $          .07 |   | $         .47 |   | $         .66 |
|                                                                              |                                                             |   |                                                             |   |   |   |   |   |   |
|                                                                              | First                                                            |   | Second                                                           |   | Third |   | Fourth |   | Year |
| 2008                                                                              |                                                             |   |                                                             |   |   |   |   |   |   |
| Net      revenues                                                                 | $  209,620                                             |   | $  236,200                                             |   | $  233,995 |   | $  237,267 |   | $  917,082 |
| Gross      profit                                                                 | 86,479                                                           |   | 97,941                                                           |   | 97,631 |   | 96,048 |   | 378,099 |
| Net      earnings (loss) attributable to Checkpoint Systems, Inc.                 | 4,798                                                            | (5)    | 14,356                                                           | (6) | 12,776 | (7) | (61,735) | (8)(9) | (29,805) |
| Net      earnings (loss) attributable to Checkpoint Systems, Inc. per      share: |                                                             |   |                                                             |   |   |   |   |   |   |
| Basic                                                                             | $          .12 |   | $          .36 |   | $          .33 |   | $     (1.58) |   | $        (.76) |
| Diluted                                                                           | $          .12 |   | $          .36 |   | $          .32 |   | $     (1.58) |   | $        (.76) |

| (1)   | Includes      a $0.3 million restructuring charge (net of tax) and a $0.8      litigation settlement expense (net oftax). |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------|

| (2)   | Includes      a $0.4 million restructuring charge (net of  tax). |
|-----------------|-----------------------------------------------------------------------|

| (3)   | Includes      a $0.2 million restructuring charge (net of tax) and a      $3.6 million valuation allowance  adjustment. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------|

| (4)   | Includes      a $3.1 million restructuring charge (net of tax) and a      $1.7 million valuation allowance adjustment. Included in fourth      quarter 2009 income tax expense is a benefit of $1.3 million related to      the settlement of a tax matter in an overseas jurisdiction for which the      assessment was received in the third quarter of  2009. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (5)   | Includes      a $0.7 million restructuring charge (net of tax) and a $0.8 deferred      compensation adjustment (net of tax) from prior  periods. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------|

| (6)   | Includes      a $2.1 million restructuring charge (net of tax) and a      $4.8 million valuation allowance  adjustment. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------|

| (7)   | Includes      a $0.5 million restructuring charge (net of tax), $0.3 million      litigation settlement expense (net of tax), and a $1.0 million gain      from the sale of the Czech Republic subsidiary (net of    tax). |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (8)   | Includes      a $58.5 million goodwill impairment charge (net of tax), a      $3.5 million litigation settlement charge (net of tax), a      $2.2 million intangible asset impairment charge (net of tax), a      $1.6 million restructuring charge (net of tax), and a      $0.8 million fixed asset impairment charge (net of    tax). |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (9)   | Includes      a $0.8 million out of period adjustment related to the accounting for      a building impairment inFrance. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------|

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Item 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTINGAND FINANCIAL DISCLOSURE

Item 9A. CONTROLS AND PROCEDURES

Item 9B. OTHER INFORMATION

PART III

Item 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATEGOVERNANCE

Item 11. EXECUTIVE COMPENSATION

Item 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS ANDMANAGEMENT

Item 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, ANDDIRECTOR INDEPENDENCE

Item 14. PRINCIPAL ACCOUNTING FEES AND SERVICES

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PART IV

Item 15. EXHIBITS AND FINANCIAL STATEMENTSCHEDULES

| 1.     | The      following consolidated financial statements of Checkpoint Systems, Inc.      were included in Item 8                                                                                                        |   |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|   | Consolidated      Balance Sheets as of December 27, 2009 and December 28,      2008                                                                                                                             | 32     |
|   | Consolidated      Statements of Operations for each of the years in the three-year period      ended December 27, 2009                                                                                               | 33     |
|   | Consolidated      Statements of Stockholders’ Equity for each of the years in the three-year      period ended December 27, 2009                                                                               | 34     |
|   | Consolidated      Statements of Comprehensive Income (Loss) for each of the years in the      three-year period ended December 27, 2009                                                                              | 35     |
|   | Consolidated      Statements of Cash Flows for each of the years in the three-year period      ended December 27, 2009                                                                                               | 36     |
|   | Notes      to Consolidated Financial Statements                                                                                                                                                                           | 37-59  |
|   |                                                                                                                                                                                                                      |   |
| 2.     | The      following consolidated financial statements schedules of Checkpoint      Systems, Inc. are included Financial      Statement Schedule, Schedule II — Valuation and Qualifying      Accounts | 64     |

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SIGNATURES

| CHECKPOINT      SYSTEMS, INC.                    |
|--------------------------------------------------|
|                                             |
| /s/      Robert P. van der Merwe            |
| Chairman      of the Board of Directors,    |
| President      and Chief Executive Officer  |
|                                             |

| SIGNATURE                              | TITLE                                                                              | DATE                   |
|----------------------------------------|------------------------------------------------------------------------------------|------------------------|
| /s/      Robert P. van der Merwe  | Chairman      of the Board of Directors, President andChief      Executive Officer | February      23, 2010 |
|                                   |                                                                               |                   |
| /s/      Raymond D. Andrews            | Senior      Vice President and Chief Financial Officer                             | February      23, 2010 |
|                                   |                                                                               |                   |
| /s/      William S. Antle, III         | Director                                                                           | February      23, 2010 |
|                                   |                                                                               |                   |
| /s/      George Babich, Jr.            | Director                                                                           | February      23, 2010 |
|                                   |                                                                               |                   |
| /s/      Harald Einsmann               | Director                                                                           | February      23, 2010 |
|                                   |                                                                               |                   |
| /s/      R. Keith Elliott              | Director                                                                           | February      23, 2010 |
|                                   |                                                                               |                   |
| /s/      Alan R. Hirsig                | Director                                                                           | February      23, 2010 |
|                                   |                                                                               |                   |
| /s/      Jack W. Partridge             | Director                                                                           | February      23, 2010 |
|                                   |                                                                               |                   |
| /s/      Sally Pearson                 | Director                                                                           | February      23, 2010 |
|                                   |                                                                               |                   |
| /s/      Robert N. Wildrick            | Director                                                                           | February      23, 2010 |

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3. Exhibits

|                |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|---------------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Exhibit 3.1    |   | Articles      of Incorporation, as amended, are hereby incorporated by reference to      Item 14(a), Exhibit 3(i) of the Registrant’s 1990      Form 10-K, filed with the SEC on March 14,  1991.                                                                                                                                                                                                                         |
|                |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| Exhibit 3.2    |   | By-Laws,      as Amended and Restated, are hereby incorporated by reference      Item 5.03, Exhibit 3.2 of the Registrant’s Current Report on      Form 8-K filed with the SEC on December 28,  2007.                                                                                                                                                                                                                     |
|                |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| Exhibit 3.3    |   | Articles      of Amendment to the Articles of Incorporation are hereby incorporated by      reference to Item 5.03, Exhibit 3.1 of the Registrant’s Current      Report on Form 8-K filed with the SEC on December 28,      2007.                                                                                                                                                                                         |
|                |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| Exhibit 4.1    |   | Rights      Agreement by and between Registrant and American Stock and Transfer and      Trust Company dated as of March 10, 1997, is hereby incorporated by      reference to Item 14(a), Exhibit 4.1 of the Registrant’s 1996      Form 10-K filed with the SEC on March 17,  1997.                                                                                                                                |
|                |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| Exhibit 4.2    |   | Amendment      No. 1 to Rights Agreement dated as of March 2, 2007 is hereby      incorporated by reference to Exhibit 4.1 of the Registrant’s Current      Report on Form 8-K filed with the SEC on March 8,      2007.                                                                                                                                                                                             |
|                |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| Exhibit 4.3    |   | Amendment      No. 2 to Rights Agreement, dated August 5, 2009 between the Company and      American Stock Transfer & Trust Company, LLC as Rights Agent is hereby      incorporated by reference to Item 1.01, Exhibit 4.1 of the Registrant’s      Current Report on Form 8-K filed with the SEC on August 5,      2009.                                                                                                                |
|                |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| Exhibit      4.4    |   | Amendment      No. 3 to Rights Agreement, dated December 22, 2009 between the Company and      American Stock Transfer & Trust Company, LLC as Rights Agent is hereby      incorporated by reference to Item 1.02, Exhibit 10.1 of the Registrant’s      Current Report on Form 8-K filed with the SEC on December 23,      2009.                                                                                                         |
|                |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| Exhibit 10.1*  |   | Amended      and Restated Stock Option Plan (1992) is hereby incorporated by      reference to Registrant’s Form 10-K for 1997 filed with the SEC on      March 23, 1998.                                                                                                                                                                                                                                                      |
|                |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| Exhibit 10.2   |   | Consulting      and Deferred Compensation Agreement with Albert E. Wolf, are incorporated      by reference to Item(a), Exhibit 10(c) of the Registrant’s 1994      Form 10-K.                                                                                                                                                                                                                                                           |
|                |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| Exhibit 10.3   |   | Credit      Agreement dated March 4, 2005, by and among Registrant, Wachovia Bank      N.A., as Administrative Agent, and the lenders named therein, is      incorporated herein by reference to Exhibit 99.1 of the Registrant’s      Form 8-K filed on March 9, 2005.                                                                                                                                                   |
|                |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| Exhibit 10.4*  |   | Employment      Agreement with Per Harold Levin is incorporated by reference to      Item 6(a), Exhibit 10.4 of the Registrant’s Form 10-Q filed      on May 13, 2004.                                                                                                                                                                                                                                                    |
|                |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| Exhibit 10.5*  |   | Amendment      to Employment Agreement with Per Harold Levin is incorporated by reference      to Item 6(a), Exhibit 10.5 of the Registrant’s Form 10-Q      filed on May 13, 2004.                                                                                                                                                                                                                                       |
|                |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| Exhibit 10.6*  |   | Employment      Agreement with John R. Van Zile is Incorporated by reference to      Item 6(a), Exhibit 10.7 of the Registrant’s Form 10-Q filed      on May 13, 2004.                                                                                                                                                                                                                                                    |
|                |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| Exhibit 10.7*  |   | 2004      Omnibus Incentive Compensation Plan as Appendix A to the Company’s      Definitive Proxy Statement, filed with the SEC on March 29, 2004, is      incorporated by reference.                                                                                                                                                                                                                                              |
|                |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| Exhibit 10.8*  |   | 423      Employee Stock Purchase Plan as Appendix A to the Company’s      Definitive Proxy Statement, filed with the SEC on March 29, 2004, is      incorporated by reference.                                                                                                                                                                                                                                                      |
|                |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| Exhibit 10.9*  |   | Employment      Agreement by and between Robert P. van der Merwe and Checkpoint Systems,      Inc. dated December 27, 2007 is incorporated by reference to      Registrant’s Form 10-K for 2007 filed with the SEC on February 28,      2008.                                                                                                                                                                                       |
|                |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| Exhibit 10.10* |   | Amended      to Checkpoint Systems, Inc. 423 Employee Stock Purchase Plan, is hereby      incorporated by reference from Appendix A to Checkpoint System, Inc.’s      definitive proxy statement for the 2009 Annual Meeting of Shareholders      filed with the Securities and Exchange Commission on April 27, 2009 and as      Exhibit 10.1 to the Registrant’s Form 8-K, filed with the SEC on June 8,      2009.                   |
|                |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| Exhibit 10.11* |   | Checkpoint      Systems, Inc. Amended and Restated 2004 Omnibus Incentive Compensation      Plan is hereby incorporated by reference from Appendix B to Checkpoint      Systems, Inc.’s definitive proxy statement for the 2009 Annual Meeting of      Shareholders filed with the Securities and Exchange Commission on April      27, 2009 and as Exhibit 10.2 to the Registrant’s Form 8-K, filed with the      SEC on June 8, 2009. |
|                |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| Exhibit 10.12  |   | Amendment      No. 3 to Rights Agreement, is hereby incorporated by reference to Exhibit      10.1 of the Registrant’s Current Report on Form 8-K, filed with the SEC on      December 22, 2009.                                                                                                                                                                                                                                              |
|                |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| Exhibit 12     |   | Ratio      of Earnings to Fixed Charges.                                                                                                                                                                                                                                                                                                                                                                                                            |
|                |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| Exhibit 21     |   | Subsidiaries      of Registrant.                                                                                                                                                                                                                                                                                                                                                                                                                    |
|                |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| Exhibit 23     |   | Consent      of Independent Registered Public Accounting Firm.                                                                                                                                                                                                                                                                                                                                                                                      |
|                |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| Exhibit 31.1   |   | Certification      of the Chief Executive Officer pursuant to Rule 13a-14(a) of the      Exchange Act, as enacted by Section 302 of the Sarbanes-Oxley Act of      2002.                                                                                                                                                                                                                                                                       |
|                |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| Exhibit 31.2   |   | Certification      of the Chief Financial Officer pursuant to Rule 13a-14(a) of the      Exchange Act, as enacted by Section 302 of the Sarbanes-Oxley Act of      2002.                                                                                                                                                                                                                                                                       |
|                |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| Exhibit 32     |   | Certification      of the Chief Executive Officer and the Chief Financial Officer pursuant to      18 United States Code Section 1350, as enacted by Section 906 of the      Sarbanes-Oxley Act of 2002.                                                                                                                                                                                                                                       |

----

SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS

| Year | Balance      atBeginningof      Year | AdditionsThroughAcquisition             | Charged      toCosts      andExpenses | Deductions(Write-Offs      andRecoveries,      net) | Balance      atEnd      of Year |
|------|--------------------------------------|-----------------------------------------|---------------------------------------|-----------------------------------------------------|---------------------------------|
| 2009 | $      18,414                        | $    370            | $      (545)                          | $      (3,715)                                      | $      14,524                   |
| 2008 | $      15,839                        | $      27 | $      5,783                          | $      (3,235)                                      | $      18,414                   |
| 2007 | $      12,417                        | $      2,244                            | $      2,330                          | $      (1,152)                                      | $      15,839                   |

| Year | Balance      atBeginningof      Year | AdditionsThroughAcquisition                  | AllowanceRecorded      onCurrent      YearLosses | Release      ofAllowance      onCurrent      YearUtilization | Release      ofAllowance      onLossesExpired      orRevalued | Balance      atEnd      of Year |
|------|--------------------------------------|----------------------------------------------|--------------------------------------------------|--------------------------------------------------------------|---------------------------------------------------------------|---------------------------------|
| 2009 | $      22,717                        | $      — | $      4,104                                     | $      3,514                                                 | $    2,404                                | $      32,739                   |
| 2008 | $      27,572                        | $      1,449                                 | $      3,122                                     | $      (697)                                                 | $      (8,729)                                                | $      22,717                   |
| 2007 | $      34,510                        | $      — | $      1,563                                     | $    854                                 | $      (9,355)                                                | $      27,572                   |

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