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Xerox at a Glance 1

Overview 2

How Xerox Innovates:Research, Technology, Development 6

What Xerox Offers:Equipment, Services, Software, Supplies 10

How Xerox Sells:Customer Operations and Sales Channels 14

How Xerox Operates:Manufacturing and Business Support 16

Developing Markets Operations 18

Fuji Xerox 20

Corporate and Product Award Highlights 21

Directors and Officers 22

Major Xerox Locations 24

Major Products Currently Marketed in the U.S. 26

Major Productsby Year of U.S. Announcement 28

Historical Highlights 38

Financial Highlights 44

Organizational Structure 45

Xerox Glossary 46

General Contacts 48

Table of Contents

Xerox is a global

Mission Statement

Our strategic intent is to help people find betterways to do great work—by constantly leading in document technologies, products and servicesthat improve our customers’ work processes andbusiness results.

▼ ▼ ▼ ▼

Chairman and Chief Executive Officer Anne M. Mulcahy

Values Since our inception, we have operated under theguidance of six core values:

• We succeed through satisfied customers.• We deliver quality and excellence in all we do.• We require premium return on assets.• We use technology to develop market leadership.• We value our employees.• We behave responsibly as a corporate citizen.

Headquarters800 Long Ridge RoadStamford, CT 06904

Founded1906 in Rochester, N.Y., as The Haloid Company;named Xerox Corporation in 1961.

BusinessXerox Corporation is a technology and servicesenterprise that helps businesses deploy SmarterDocument ManagementSM strategies and find better ways to work. It offers an array of innovative document solutions, services and systems — including color and black-and-whiteprinters, digital presses, multifunction devices and digital copiers — designed for offices andproduction-printing environments. It also offersassociated supplies, software and support.

2004 Revenue $15.7 billion

2004 Income$859 million

2004 Earnings$0.86 per share

2004 Commitment to Research & Development$760 million, or about 5 percent of revenue

EmployeesAbout 58,000 worldwide, including 32,000 in the United States.

Xerox on the Web

www.xerox.com

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X e r o x a t a G l a n c e

Xerox at a Glance

leader...

OverviewXerox provides the document industry’s broadestportfolio of offerings. Digital systems include colorand black-and-white printing and publishing systems,digital presses and “book factories,” advanced andbasic multifunction systems, laser and solid inknetwork printers, copiers and fax machines. Xerox’sservices expertise is unmatched and includes helpingbusinesses develop online document archives,analyzing how employees can most efficiently sharedocuments and knowledge in the office, operatingin-house print shops or mailrooms, and buildingWeb-based processes for personalizing direct mail,invoices, brochures and more. Xerox also offersassociated software, support and supplies such astoner, paper and ink.

Headquartered in Stamford, Conn., Xerox is No. 132 among the Fortune 500 and has 58,000employees worldwide. The company’s operationsare guided by customer-focused and employee-centered core values — such as social responsibility,diversity and quality — augmented by a passion forinnovation, speed and adaptability.

The Business of XeroxThe company’s strategic focus is on three primarymarkets: high-end production and commercial printenvironments, networked offices from small to largeand value-added services. Two unifying themescross all areas and play to Xerox’s core strengths:color, and solutions that tailor Xerox devices tosolve a customer’s problem.

Of the $15.7 billion in 2004 revenue, the UnitedStates accounted for $8.3 billion; Europe accountedfor $5.3 billion; and Latin America, Canada and othercountries accounted for $2.1 billion. Also in 2004:

• Revenue derived from Xerox’s services offeringsrepresented about $3.4 billion, which includes document outsourcing.

• Color revenue, including sales of everything fromnetwork printers to digital color presses and related services and supplies, grew to $3.9 billion.

• And 32 percent of all Xerox equipment-sale revenue came from color equipment, reflecting the growing market demand for color systems.

Xerox has fueled market-share gains by launching more than 40 digital office and production productsin 2004, delivered through a broad set of sales channels.About two-thirds of Xerox’s 2004 equipment-salerevenue was derived from new, industry-leadingsystems introduced in the past two years.

O V E R V I E W

Xerox Corporation is a $15.7 billion technologyand services enterprise...

THAT HELPS BUSINESSES DEPLOY SMARTER DOCUMENT MANAGEMENT STRATEGIES AND FIND BETTER

WAYS TO WORK. ITS INTENT IS TO CONSTANTLY LEAD WITH INNOVATIVE TECHNOLOGIES, PRODUCTS

AND SOLUTIONS THAT CUSTOMERS CAN DEPEND UPON TO IMPROVE BUSINESS RESULTS.

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innovation@Xerox

5.4 percent Asian and 0.8 percent Native American.Women made up 31 percent of the total U.S. workforce of 32,000. About 43 percent of Xerox seniorexecutives are women or people of color or both.

Caucus groups are another piece of the diversitystory. These independent groups of Xerox employeesdate from the 1960s. The six caucuses, akin tonetworking and mentoring groups, are instrumentalin advocating openness, opportunity and inclusionfor the entire Xerox community and work withmanagement to achieve common business objectives.Caucuses exist for African-American, Hispanic,Asian, women, African-American women, andgay/lesbian employees.

Xerox has been consistently recognized by independent organizations for its employee diversity successes as well as for its commitment to supplier diversity. Since 1985, Xerox haspurchased more than $4.7 billion in goods and services from minority-, women- and veteran-owned businesses in the United States.

Xerox and Work-LifeXerox is committed to helping employees balancethe demands of their professional and personallives, in the belief that such balance helps employeesto be more satisfied and productive on the job.Xerox offers a variety of alternative work arrange-ments and benefits including flex hours, job sharingand telecommuting, help for first-time home buyers,child-care subsidies, dependent-care counseling andreferral, adoption assistance, help with parentingand educational concerns, and assistance with elder-care issues.

Xerox and QualityXerox products are consistently rated among theworld’s best by independent testing organizations.Since 1980, Xerox and Fuji Xerox have won 25national quality awards in 20 countries, includingthe world’s three most prestigious. In the UnitedStates, Xerox is a two-time winner of the MalcolmBaldrige National Quality Award: for XeroxBusiness Services in 1997 and for Xerox BusinessProducts and Systems in 1989. Xerox Europe,formerly Rank Xerox, won the first EuropeanQuality Award in 1992. Fuji Xerox won the DemingPrize, Japan’s highest quality award, in 1980.

Building on the company’s experience in quality,in late 2002 Xerox began an enterprise-wide effortintegrating Six Sigma and Lean Manufacturingtools and processes into a comprehensive strategycalled Xerox Lean Six Sigma. It is a disciplined,data-driven method of reducing waste and variationin processes so they consistently deliver products

and services at the quality levels, speeds and pricesthat customers value — and therefore improveXerox business results. More than 30 dedicatedXerox Lean Six Sigma deployment managers and more than 600 “Master Black Belts” and “Black Belts” lead projects in every businessthroughout the company.

Xerox and DiversityXerox has a long-standing commitment to main-taining an inclusive, progressive workplace environ-ment that values all ways of thinking, culturaldifferences and new perspectives. Xerox viewsdiversity in the workplace as a moral imperative and a business and competitive advantage. People of allages and from different backgrounds bring freshperspectives and create innovative solutions.

Diversity practices are deployed throughout allcore operations. Under the company’s balancedwork force strategy, senior managers are expectedto proactively manage diversity objectives throughstaffing, retention, promotions, leadership develop-ment and work environment initiatives.

At the end of 2004, Xerox’s U.S. work force was14.8 percent African-American, 8.4 percent Hispanic,

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“Generally speaking, if you look at Xerox in two years,

you’re going to have a strong, stable company with

impressive market share.”Financial analyst Shannon Cross, in The Associated Press,“Xerox Still One for Others to Copy”Nov. 2, 2003

vision

dive

rsity

Xerox and Community InvestmentsXerox’s social responsibility efforts are an extensionof the company’s belief that a successful corporationmust be an active participant in society. The companycarries out most of its philanthropy through TheXerox Foundation. It assists more than 400 social,civic and cultural organizations. Xerox also providedmore than 40 grants to university research programschampioned by a Xerox scientist, and it offeredscholarship support at more than 140 colleges anduniversities to prepare students for careers in busi-ness, science and technology and to enhance learningopportunities for minorities and women.

In all, the Foundation contributed $12.3 million in2004 across five areas: education and work forcepreparedness, science and technology, culturalaffairs, national affairs, and employee/communityactivities. Employee/community activities aresupported primarily through four programs.

The Xerox Community Involvement Programhelps fund teams of employees who work on specificcommunity projects of their choosing. In 2004, morethan 10,000 employees participated in XCIP proj-ects across the country, and more than 412,500employees have worked on nearly 16,000 projectssince 1974.

Under the Social Service Leave Program,employees are granted paid leaves of up to one yearto work on social action projects of their choice. Theprogram, one of few corporate sabbatical programsdesigned to provide opportunities for employees towork full-time in their communities, is believed to

be the oldest of its kind in American business. Sincethe program began in 1971, 461 employees havebeen granted a leave, including eight employees for 2005.

The Foundation also matches employee gifts to higher education under the Xerox EmployeeMatching Gifts Program — about 2,140 gifts in2004. And under the Employee United Way program,it educates employees about United Way servicesand administers employee contributions. In 2004,Xerox people and the Foundation together gavemore than $4.2 million to United Way.

Xerox and Corporate GovernanceXerox aims to be a role model in ethical behaviorand business practices, nurturing a culture ofintegrity, openness and inclusion. The company’s11-member board of directors is 91 percent inde-pendent. Xerox people worldwide receive frequenttraining on how to apply the company’s Code ofConduct to their everyday work activities. In addition, the Xerox Ethics Helpline offersemployees an opportunity to seek guidance andraise issues concerning business standards andethics. All governance policies, charters and codesare available at www.xerox.com.

Xerox and the EnvironmentXerox is a pioneer in designing and building“waste-free” products. In a world of finite resources,Xerox uses materials and energy efficiently to mini-mize waste and emissions. Each year, Xerox saves

O V E R V I E W

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A Brief History of XeroxChester Carlson, a patent attorney and part-time inventor, made the

first xerographic image in his makeshift laboratory in Astoria,

Queens, in New York City, on Oct. 22, 1938. He spent years trying to

sell his invention without success. Business executives and entrepre-

neurs didn’t believe there was a market for a copier when carbon

paper worked just fine. And the prototype for the copier was

unwieldy and messy. Some 20 companies, IBM and General Electric

among them, met his invention with what Carlson called “an enthusiastic lack of interest.”

Finally in 1944, the Battelle Memorial Institute in Columbus, Ohio, contracted with Carlson

to refine his new process, which Carlson called “electrophotography.” Three years later, The

Haloid Company, a maker of photographic paper in Rochester, N.Y., approached Battelle and

obtained a license to develop and market a copying machine based on Carlson’s technology.

Haloid later obtained all rights to Carlson’s invention. Carlson and Haloid agreed the word “electrophotog-

raphy” was too cumbersome. A professor of classical languages at Ohio State University suggested

“xerography,” derived from the Greek words for “dry” and “writing.”

Haloid coined the word “Xerox” for the new copiers, and in 1948, the word Xerox was trademarked.

Inspired by the early, modest success of its Xerox copiers, Haloid changed its name in 1958 to Haloid

Xerox Inc. The company became Xerox Corporation in 1961 after wide acceptance of the Xerox 914, the

first automatic office copier to use ordinary paper.

September 2004 marked the 45th anniversary of the Xerox 914. More than 200,000 units were made

around the world between 1959 and 1976, the year the company stopped production of the 914. In 1985,

26 years after its introduction, Xerox announced that it would no longer renew 914 service contracts in the

United States. Instead, a time and materials repair service was offered for the more than 6,000 units still in

operation. Today, the Xerox 914 is part of American history as an artifact in the Smithsonian Institution.

1938

inte

grity

commitment to source paper from suppliers thatpractice sound environmental management andsustainable forestry.

Xerox has integrated environmental considera-tions into its manufacturing operations throughimplementation of an ISO 14001-conforming environmental management system. All Xeroxmanufacturing sites have achieved certification to this standard. In 2003, Xerox made a formalcommitment to expand efforts to further reduceenergy consumption and associated greenhouse gas emissions. In early 2005, the company formallyset its targets and pledged to cut greenhouse gasemissions from worldwide operations by 10 percentfrom 2002 to 2012.

The Xerox TrademarkXerox is a famous trademark and trade name.Xerox as a trademark is properly used only as abrand name to identify the company’s products andservices. The Xerox trademark should always beused as a proper adjective followed by the genericname of the product: e.g., Xerox printer. The Xeroxtrademark should never be used as a verb. Thetrade name Xerox is an abbreviation for thecompany’s full legal name: Xerox Corporation.

XEROX is a registered trademark of XeroxCorporation.

Stock InformationXerox common stock (XRX) was listed on the NewYork Stock Exchange in 1961 and on the ChicagoStock Exchange in 1990. It is also traded on theBoston, Cincinnati, Pacific Coast, Philadelphia,London and Switzerland exchanges.

Xerox is incorporated in New York.

several hundred million dollars through productremanufacturing and parts reuse processes, divertingwell over 100 million pounds of waste from land-fills. All Xerox-designed copiers, printers and multifunction systems are developed to be remanu-factured at the end of their initial life cycles.

Each new generation of Xerox products offersincreasing functionality while conserving energyand materials and requiring fewer hazardoussubstances throughout the product life cycle.Hundreds of Xerox products have met the environ-mental performance requirements of the world’smost widely recognized certifications — includingCanada’s Environmental Choice EcoLogo and theinternational ENERGY STAR®.

Xerox multifunction systems offer inherent envi-ronmental benefits.WorkCentre® and WorkCentre®

Pro models are modular and easy to upgrade socustomers can buy only the functions they need,conserving resources. Advanced controller tech-nology allows the system to perform several func-tions — print, copy, fax or scan — at once, makingit possible for a multifunction system to replaceseveral standalone machines. Scanning options helpreduce the need to mail hardcopy documents,helping customers reduce paper inventory.

Xerox Phaser® solid ink printers are notable forconserving materials. They weigh about 25 percentless than typical color laser printers, and theyproduce about 95 percent less waste during usebecause they require no cartridges and minimalconsumable supplies.

Xerox also offers high-quality recycled paperswith up to 100 percent post-consumer waste content.Xerox machines are optimized for their use. Agrowing number of papers are manufactured usingelemental chlorine-free or totally chlorine-freebleaching and de-inking processes. As one of thelargest resellers of cut-sheet paper in the world,Xerox ensures the practices of its paper suppliersare consistent with its environmental goals. In 2003,Xerox issued to its paper suppliers a set of environ-mental requirements, which support Xerox’s

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“We are focusing on continuing what we do well. We

have a very sound and consistent strategy. We’re

delivering on all of those commitments and over time,

that gets rewarded.”Anne Mulcahy, on Fox News, “Your World with Neil Cavuto”

Nov. 22, 2004

Xerox is a company that is founded on — andthrives on — innovation. The Xerox InnovationGroup explores the unknown, invents next-genera-tion technology and creates new business andshareholder value through its five worldwideresearch centers and associated operations. XIG’steam includes the scientists who invent new tech-nology; the experts who help secure intellectualproperty through patents; and the managers whodeliver the technology to Xerox business groups,use it as the foundation for new businesses, orlicense it to an outside company to bring value to their products.

XIG divides its functions into three areas: researchand technology, intellectual property managementand licensing, and business unit operations. XIGbusiness units and spinoff companies generaterevenue by providing software, services and newdevices to their customers.

Xerox continues to push the frontiers of researchand technology by reinventing its machines andsystems, rethinking how people work, and redefining“the document.” XIG also collaborates with Xeroxbusiness groups to select and implement the archi-tectures and technologies that enable winningproduct and component platforms.

Research and technology activities are conductedat centers in the United States, Canada and Europeand often in collaboration with Fuji Xerox. In 2004,Xerox spent $760 million on research and develop-ment, or about 5 percent of its $15.7 billion inrevenue. The $704 million spent by Fuji Xeroxraised the total Xerox group commitment in R&Dto about $1.5 billion in 2004.

Xerox Innovation Group800 Long Ridge Road Stamford, CT 06904 Hervé J. Gallaire, XIG president and Xerox chief technology officer

Research and Technology

Imaging and Services Technology Center800 Phillips Road Webster, NY 14580Sid Dalal, vice president and center manager

The Imaging and Services Technology Center,founded in 2003, is the focal point for Xerox’s corecompetencies in digital imaging and in documentsolutions and services. Its researchers are inWebster, N.Y., and in El Segundo and Palo Alto,

H O W X E R O X I N N O V A T E S

Research, Technology,Development

SCIENTISTS AND ENGINEERS IN THE XEROX INNOVATION GROUP DRIVE INVENTION, INNOVATION

AND INTEGRATION THROUGHOUT THE CORPORATION.

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H o w X e r o x I n n o v a t e s

Xerox Research Centre of Canada2660 Speakman Drive Mississauga, OntarioL5K 2L1, Canada Hadi Mahabadi, vice president and center manager

Founded in 1974, XRCC leverages its core competencies in materials design, synthesis,characterization, evaluation and scale-up to deliver — with partners — environmentally sound materials and processes that support higher-quality and lower-cost document systems.

Specifically, XRCC conducts fundamental andapplied materials research in toners, inks, photo-receptors and specialty substrates to support xerographic and direct marking technologies.An example of its breakthrough research is a chemical toner called “EA Technology,” whichyields sharper image quality, higher reliability,faster warm-up time and an environmentallyfriendly manufacturing process.

Research in organic electronic materials fordigital document media, displays and printedorganic electronic consumables is also being carried out to bridge the gap between paper and electronic documents.

Calif. Expertise in the center includes digitalimaging, electrical engineering, computer science,data mining, and social sciences including anthro-pology, psychology and sociology.

ISTC researches and develops new imagingarchitectures and systems for two primary areas.First, it supports Xerox’s traditional office andproduction systems with benchmark digital imagingand workflow technologies that are key componentsin the rapidly growing world of color printing.Second, its research helps form the foundation ofofferings for Xerox Global Services’ productionand document management businesses.

Wilson Center for Research and Technology800 Phillips Road Webster, NY 14580 Steven B. Bolte, vice president and center manager

Since its founding in 1960, the Wilson Center hasbeen recognized internationally for its pioneeringwork on xerography. It provided the technicalfoundation and intellectual property protection for four generations of Xerox marking engines.During the past decade, it expanded its scope toencompass systems integration and design, solid ink technology, and the control of complex imagingand printing systems.

Wilson Center researchers lead the drive toprovide Xerox customers with affordable colorproducts. They reduce the cost and improve theperformance of Xerox marking engines by usingelectronics and modern controls to replace costly precision mechanical parts while assuringstrong performance.

The center’s work spans the entire scope of document production, including image evaluation,image processing, marking processes, mediahandling, microsystems, embedded systems controls and device controls. They orchestrate these activities to develop future marking engineplatforms that emphasize color, low cost of ownership, improved media latitude, and benchmark image quality.

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“Return on R&D investment has been strong and color

innovations hatched originally for one machine migrate

up and down Xerox’s 30-product color line.”Xerox’s Ursula Burns, in BusinessWeek, “Xerox is Dreaming in Color”

Dec. 13, 2004

Xerox Research Centre Europe6 chemin de Maupertuis 38240 Meylan Grenoble, France Monica Beltrametti, vice president and center manager

Founded in 1993, XRCE guides Xerox researchactivities in Europe. The center coordinatesresearch, engineering and the TeXnologyShowroom, a customer showcase for Xeroxresearch and a technology exchange forum. Thecenter also develops connections within the widerEuropean scientific community through collabora-tive projects and partnerships.

XRCE creates innovative document technologiesto support growth in Xerox content and documentmanagement services. Research is conducted in textand image processing, document structures and thestudy and understanding of work practices.Technology applications are developed that stream-line document-intensive processes, bridge the paperand digital worlds, and ease the task of managinginformation in multiple languages. The center’sresearch competencies lie in natural languageprocessing, machine learning, computer vision,information engineering, sociology and ethnography.

Palo Alto Research Center Inc.3333 Coyote Hill Road Palo Alto, CA 94304 Mark Bernstein, president and center director

PARC is a wholly owned subsidiary of Xerox andan integral part of Xerox’s strategy for long-termresearch investment. Founded in 1970 as part ofXerox Research, PARC was incorporated in 2002 as an independent research business.

As the birthplace of technologies such as laserprinting, Ethernet, the graphical user interface, andubiquitous computing, PARC has an establishedtrack record for transforming industries and creatingcommercial value. PARC has delivered lasting valueto Xerox, for example, as laser printing became amultibillion-dollar business for Xerox. PARC is thebirthplace of Xerox’s DocuPrint network printing

software, the dual-beam lasers used in many Xeroxproducts, and the scheduling software of the XeroxiGen3® Digital Production Press.

Xerox continues to embed relevant PARC technology into its product and solutions offerings.PARC is also delivering its innovations to a widerrange of non-competitive industry partners thanever before. Together, PARC and Xerox aredefining a new vision for how pioneering researchcreates commercial impact. Current researchincludes diverse areas such as semiconductor lasers,microelectromechanical systems (MEMS), scalablesmart environments, wireless networks, security,linguistic analysis, information interaction, commu-nity knowledge sharing, and biomedical sciences.

H O W X E R O X I N N O V A T E S

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“There is no question that Xerox has jumped feet first

into the digital arena....The company has built a thriving

business in managing document-related services for

other companies.”The New York Times, “Xerox wants to move beyond ‘The Document Company’”

Sept. 13, 2004

access, manage and share digital content within a secure, online environment, using standard Web browsers. With more than 1 million users,DocuShare is a user-friendly, easy-to-install system that works with a variety of platforms and document formats. For more information,visit www.xerox.com/docushare.

• Gyricon LLC, established in 2000, is commer-cializing the SmartPaper™ electronic paper technology developed at Xerox PARC. The company’s initial products are wireless electronic signs for retailers and the recently developed SyncroSign™ Message Board. For more information, visit www.gyriconmedia.com.

Xerox Engineering Center800 Phillips RoadWebster, NY 14580Sophie V. Vandebroek, vice president and Xerox chief engineer

The Xerox Engineering Center, which reports intoboth XIG and Business Group Operations, leadsXerox’s research, development and engineeringefficiency and effectiveness, enabling technologyinnovation to be the strong foundation for Xerox'sprofitable revenue growth.

The center’s responsibilities include attractingand nurturing best-in-class scientists and engi-neers; incubating systems, hardware/materials andsoftware technologies; prioritizing the Xerox R&Dportfolio; keeping strategic technology roadmapsevergreen; and strengthening Xerox engineeringcapabilities through state-of-the-art tools andprocesses. The XEC also drives consistency in the“look and feel” of all Xerox products and theirsystems coherence — as demonstrated in the interoperability and the seamless fit of Xerox products in customers’ environments.

Other XIG Operations

Xerox Intellectual Property Operations800 Phillips RoadWebster, NY 14580Harry Williams, vice president

XIPO, in cooperation with the Intellectual PropertyLaw Department, manages the protection andcommercialization of Xerox’s intellectual propertyand plays a significant role in the patent filingprocess. In 2004, Xerox filed 760 new inventiondisclosures and was issued 525 U.S. patents. IPstrategies and policies are aligned with corporatetechnology, product and market strategies.Invention disclosures are analyzed, rated and, asappropriate, recommended for patent prosecution,public disclosure or trade secret retention. XIPOensures that other companies respect Xerox intel-lectual property rights by enforcing Xerox rightsthrough various licensing and other settlementarrangements, by defending Xerox from the assertions of others, or by obtaining strategic cross-licenses with key companies.

In addition, XIPO works closely with IPValueManagement, an external firm focused on commer-cializing intellectual assets, to leverage Xerox technologies through licensing opportunities.Through XIPO and IPValue, Xerox licenses itsportfolio of about 8,000 active U.S. patents thatspan digital imaging, marking systems, materials,and solutions and services technology.

Xerox Innovation Group Enterprises800 Long Ridge RoadStamford, CT 06904Hervé J. Gallaire, acting manager

This group includes Xerox business units managedby XIG and separate companies that have beenformed to commercialize Xerox technology. Thoseunits and companies serve as new businesses forXerox and as additional commercialization pathsfor Xerox-developed technology. In the start-upphase, they can tap into established Xeroxresources, including corporate engineering,marketing and professional services support,beyond the reach of most new businesses. Overtime, each unit or company will be merged intoXerox Corporation, become an independent orpublicly traded company, or be sold. Xerox mayretain a minority or majority ownership stake.Today XIGE consists of two entities:

• DocuShare Business Unit, which develops and sells DocuShare® document management software. DocuShare allows multiple people to

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solu

tions

These products and services primarily originatefrom two main business operations called BusinessGroup Operations and Xerox Global Services.Both entities contribute to Xerox’s mission to give customers better ways to do great work.They manage the design, engineering andmarketing of Xerox imaging equipment, supplies,software and services. Xerox works with VisioneerInc. and Proview Technology Inc. on a retail line of Xerox DocuMate desktop scanners, Xerox digital projectors and Xerox flat-screen computer monitors that are marketed and supported by those partner companies.

Business Group Operations70 Linden Oaks Parkway Rochester, NY 14625 Ursula M. Burns, president

Business Group Operations brings together all ofthe marketing, engineering, product developmentand acquisition, and manufacturing for Xerox’soffice and production markets. Of Xerox’s 2004revenue, the production market represented about$4.6 billion and includes monochrome products thatprint over 90 pages per minute and color productsover 40 pages per minute. The office market represented $7.6 billion, and it includes all systems operating below those speed levels.BGO also manages the supplies business and the Xerox Engineering Center. The following aresome of its key product divisions and offerings.

Production Systems Group800 Phillips RoadWebster, NY 14580Quincy L. Allen, president

Xerox is among the printing industry’s digitalpioneers and continues to lead efforts to help businesses profit from the ongoing digital printingrevolution. Xerox ignited the customized produc-tion-printing industry in 1977 by introducing high-speed laser printing for producing computerdata-based output. In 1990, the DocuTechProduction Publisher spawned today’s fast-growing,print-on-demand industry. And in 2002, Xeroxlaunched its iGen3 Digital Production Press, theindustry’s most advanced and cost-effective digitalcolor press. It is revolutionizing the color print

W H A T X E R O X O F F E R S

Equipment, Services,Software, Supplies

XEROX PROVIDES HUNDREDS OF SYSTEMS AND SERVICES THAT HELP CUSTOMERS CREATE, MANAGE AND

SHARE DOCUMENTS: HIGH-END DIGITAL PRODUCTION PRINTERS, OFFICE MULTIFUNCTION SYSTEMS,

TONER AND PAPER, OUTSOURCED DOCUMENT MANAGEMENT AND MORE.

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W h a t X e r o x O f f e r s

color and black-and-white multifunction, printer,copier and fax products.

Xerox office digital copiers, copier-printers andadvanced multifunction systems — which print,copy, scan, fax and e-mail — belong to one of threeproduct families: CopyCentre®, WorkCentre® orWorkCentre® Pro. These products range in speedsfrom 16 to 90 pages per minute, from desktopproducts like the WorkCentre C2424 solid ink color multifunction device and WorkCentre M20i copier-printer, to larger products like theWorkCentre Pro C3545 advanced multifunctionsystem with an array of finishing options.

The Xerox Office Group also provides XeroxPhaser® color and black-and-white networkprinters. Xerox printers are making color printingfast, easy and affordable for all business environ-ments. Xerox uses a variety of printing technologiesincluding laser, LED and the Xerox-exclusive solid ink.

Rounding out Xerox’s offerings are software solutions and services developed to enhance workerproductivity. For example, CentreWare® Web software helps customers effectively manage allnetwork printing devices in their company, regard-less of brand, through a Web browser. DocuShare®

allows people to share and store online documents

market, as it combines the image quality of offsetprinting with the speed and technical capabilities ofdigital printing.

Xerox’s primary high-end product families areDocuPrint® for enterprise printing, Xerox Nuvera™

and DocuTech® for digital on-demand printing, andDocuColor® and iGen3® for digital full-colorprinting. PSG is responsible for production-levelcolor, highlight color, and black-and-white printersand presses in cut-sheet, wide-format, and contin-uous-feed formats. These systems are designed for customers in the graphic communicationsindustry and for large enterprises like healthcareorganizations or insurance companies.

PSG also offers total document solutions andservices that can scan, view, manage and producedocuments, as well as a variety of pre-press andpost-press digital workflow options to meetcustomer demands. The FreeFlow™ digital workflow collection consists of software, hardwareand tools that help print providers simplify workprocesses, attract new business with high-valueapplications, and better manage print jobs all the way from creation to the final invoice and fulfillment.

PSG solutions enable just-in-time printing,one-to-one personalized printing, and digital book production across multiple environments.In addition, Xerox develops a wide range ofcomplementary finishing devices and supplies.

Xerox Office Group26600 SW ParkwayWilsonville, OR 97070Tim Williams, president

Since the invention of the plain-paper copier,Xerox has transformed the way people work in an office. From the single-person office to thedepartmental workgroup, from the research lab to the graphic design studio, Xerox supports every office environment. The Xerox Office Group develops and manufactures a range of

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createmanageshare

“We expect colour [printing and copying] to provide all of

the top-line growth we see for 2004-2005 and beyond,

as high-volume digital colour printing, a truly disruptive

technology, invades the very big market now dominated

by offset printing.”Financial analyst Steve Weber, in the Toronto Globe and Mail, “Xerox’s Digital

Future Looks Sharp as New Products Spur Profit”

Oct. 22, 2004

more efficiently. And SMARTsendTM enables Xeroxadvanced multifunction systems to send scannedimages to multiple destinations with a single scan.Xerox also provides in-depth analysis of how officeenvironments operate and the processes theirworkers use so that it can recommend the optimalmix of office systems.

Xerox Supplies Business Group855 Publishers ParkwayWebster, NY 14580Nancy Rees, senior vice president

Xerox is one of the world’s leading providers ofimaging supplies and paper. From toner, inks andprint cartridges to various types of paper andprinting materials, supplies are an important part of the company’s overall business.

XSBG, which is a part of Paper, Supplies andSupply Chain Operations, develops and markets acomplete range of paper and specialty media prod-ucts designed for Xerox digital printers. Xeroxpapers and specialty media include text and covergrades, coated papers, labels, transparencies, carbon-less cut-sheet papers, business cards and more — all designed in the Xerox Media and CompatiblesTechnology Center to ensure optimal machineperformance and benchmark image quality.

Xerox is also the leading innovator in toner,photoreceptor and fuser technology. From itspioneering work with carbon-based organic tonerformulations in the 1950s — creating the copiermarketplace — to current work with chemicallygrown EA toner, Xerox has consistently set thepace for the industry. Its research, development and manufacturing partnerships with Fuji Xerox position Xerox as the world’s largest toner manufacturer.

The Supplies Business Group also develops and distributes “It’s Compatible” toner cartridges— laser toner cartridges designed for selectedHewlett-Packard printers. Since entering thismarket in 1997, Xerox has established itself as a

high-quality alternative to HP, with the largest line of brand-name compatible cartridges in the industry.

Xerox Global Services70 Linden Oaks ParkwayRochester, NY 14625Thomas J. Dolan, president

Xerox Global Services provides consulting servicesto help companies worldwide get better resultsthrough process innovation. No other company has more experience making business processesmore cost-efficient and secure. Xerox experts canmanage document technology and assets in anoffice, provide records management, create betterprint-production operations and more. All Xeroxservices use Smarter Document ManagementSM

technologies and processes to achieve measurableresults that meet customer objectives.

W H A T X E R O X O F F E R S

12


Production Services These services bring Xerox’s document-manage-ment expertise into print operations that producemassive volumes of documents daily. Xerox consult-ants can provide insight on how to make operationssuch as a commercial print shop printing books andmanuals or a finance firm’s in-house print centerchurning out credit-card statements work more efficiently and create the most compelling docu-ments by adding color or using personalizationcapabilities. Xerox has decades of experience withdigital on-demand printing, workflow software,color and black-and-white publishing, and printoperations management.

Xerox service professionals include consultantsand technical experts who identify and assess aclient’s situation, design and implement solutions,and then manage the resulting work processes asneeded. Xerox Global Services spans three primaryareas: Business Process Services, Office Servicesand Production Services.

Because Xerox can help customers re-engineerbusiness processes, redesign documents, and deliver information more effectively, customers can not only improve the way they work but alsomaximize what they’ve already invested in information technology.

Business Process ServicesThese services are designed to help companiesimprove document-driven processes so they cansave money, be more productive and better servetheir customers. Xerox consultants use provenworkflow methods and technologies that canstreamline finance and accounting processes suchas billing, legal processes such as risk managementand compliance, and more. Through Xerox’simaging center, Xerox people also can scan and digitize documents to create secure, accessible and searchable online information archives such as a library of car-rental contracts or construction blueprints.

Office ServicesThese services help companies understand whattypes of document equipment they really need, thebest way that equipment should be managed, andhow office workers can best take advantage of it all in their daily work. Xerox consultants use “realworld” insight and proven methodologies to assessa company’s environment and processes. Then they can determine what technology should beretained or removed to make that office and itswork processes flow more smoothly and cost less.Companies can also outsource office services —such as IT help desks, print-support services andmore — to Xerox.

13


...helping customerswith high-volume

printing needs...

“Xerox expects Global Services to grow 15 to 20 percent

this year and at double-digit rates over the next five years.”Financial Times, “Xerox Takes Road Toward Reinvention”

Nov. 4, 2004

Xerox North America800 Long Ridge Road Stamford, CT 06904 James A. Firestone, president

This group provides solutions and services to Xeroxcustomers across North America and is structuredto integrate North American sales, marketing andservices delivery organizations. Here are some ofXerox North America's major components.

North American Solutions Group Xerox Square 100 S. Clinton Ave.Rochester, NY 14644 Michael D. Brannigan, president

The North American Solutions Group sells andservices Xerox office and high-end products andsolutions throughout the United States and Canada.NASG employs about 23,000 direct sales, servicesand support experts who serve customers throughits geographic and industry-focused business units.For example, the graphics arts industry unit focuseson commercial printers, quick printers and similarenterprises. NASG also works closely with otherXerox business groups to make sure Xeroxresponds effectively to a wide range of customerrequirements.

Xerox Services, the largest NASG group, operatesoutsourced document management services, such as running a customer’s in-house printing center or mailroom. Xerox technical service professionalsinstall digital products and implement solutionscreated for Xerox customers. In addition, theymanage customer satisfaction and trainingprograms for the entire organization.

Xerox Capital Services LLC is a joint venturecompany owned by GE Vendor Financial Services,a unit of GE Commercial Finance, and XeroxCorporation. Xerox Capital Services manages orderprocessing, lease administration, billing and collec-tions for Xerox customers in the United States.It was created in 2002.

Xerox Canada 5650 Yonge St.North York, Ontario M2M 4G7, Canada Doug Lord, president and CEO

Xerox Canada was established in 1953 and hasoffices in most major Canadian cities. In addition to providing direct sales, marketing and servicesupport of Xerox products and solutions with theNorth American Solution Group, Xerox Canadasells products through other channels such asresellers, agents, dealers and the two XeroxTeleWeb centers in St. John, New Brunswick,and Halifax, Nova Scotia.

The Xerox Research Centre of Canada is inMississauga, a Toronto suburb. The total Xeroxpopulation in Canada includes nearly 5,000 peopleat Xerox Canada, XRCC and the TeleWeb opera-tions. Xerox Corporation owns 97 percent of theCanadian subsidiary; the remaining 3 percent isheld by shareholders.

North American Sales Channels Complementing Xerox’s direct-sales efforts is avariety of sales channels that allow customers to do business with Xerox in several ways.

H O W X E R O X S E L L S

Customer Operations andSales Channels

XEROX PRODUCTS AND SERVICES ARE SOLD THROUGH

A VARIETY OF CHANNELS INCLUDING DIRECT SALES,

TELEBUSINESS, RESELLERS, AGENTS, CONCESSIONAIRES

AND THE WEB.

14

H o w X e r o x S e l l s

focused on three main areas: offices from small tolarge, production print and graphic arts environments,and services that include consulting, system designand management, and document outsourcing.

Services-oriented document solutions for manycorporate customers are sold directly by Xerox orthrough accredited business partners, as are high-end printing and publishing offerings to largercorporations and commercial printers. Small- andmedium-sized businesses are primarily served bydistributors, resellers and concessionaires. Theconcessionaire channel is a 520-strong, Xerox-specific network across Europe with more than4,500 sales and telesales representatives.

Xerox Europe has a customer support operationin Ireland, and Xerox products are manufactured inthe United Kingdom, Ireland and the Netherlands.The Xerox Research Centre Europe is located inGrenoble, France. Xerox Europe employs nearly16,000 people and dates from 1956, when Xeroxmade its first foray into international markets with Rank Xerox, a joint venture with the RankOrganisation plc. Xerox bought out Rank’s interest in 1997.

Global Accounts and Marketing Operations 800 Long Ridge RoadStamford, CT 06904Michael C. Mac Donald, president

This group manages the overall Xerox customerexperience and the Xerox brand, seeking to maxi-mize the way Xerox interacts with millions ofcustomers each year in person, through documents,on the Web, or over the phone.

GAMO supports Xerox’s largest global accounts— those major businesses that operate in marketsaround the world and therefore rely on Xerox solu-tions and services in multiple locations. Xeroxglobal account managers work with GAMO tomeet the unique needs of these top customers.

In addition, this organization is responsible forbrand management and stewardship, corporatemarketing, advertising, strategic public relations,major events and sponsorships. GAMO alsoprovides a global Web presence throughwww.xerox.com. The Xerox.com team serves more than two dozen countries with a commonplatform that is customized for different languagesand requirements. The site has extensive informa-tion about Xerox products, supplies and servicesand offers ways to buy Xerox products directly or through online channel partners. The site also offers extensive post-sale support tools.

North American Agent Operations operates theAuthorized Sales Agent program. About 600 independent businesses act as Xerox AuthorizedAgencies with approximately 2,500 agency salesrepresentatives. This channel, initiated in 1982, sellsthe complete line of Xerox offerings to primarilysmall- and medium-sized businesses.

The North American Dealer Channel marketsworkgroup fax and mid-range digital multifunctiondevices through more than 400 Xerox AuthorizedDealers and independent office equipment dealers.These dealers are independent businesses — locallyowned and managed — with showroom, office andwarehouse facilities.

The North American Reseller Sales group providesa range of programs designed to help independentvalue-added resellers and direct-response partnersworldwide grow their business with Xerox colorand black-and-white network printers, as well asworkgroup fax and multifunction devices. Resellersare the primary sales channel for Xerox officeprinters, with more than 11,000 resellers in NorthAmerica carrying Xerox products.

North American TeleWeb lets customers do business with Xerox over the phone (800-ASK-XEROX) and on the Web. Since 1999, the channelhas grown to several TeleWeb “contact centers” inNorth America, Europe and developing marketscountries. TeleWeb takes inbound and outboundcalls to sell products, supplies and services, oftencomplemented by Web-based tools and demonstra-tions. It also places outbound calls to generate salesleads for a variety of Xerox channels. Highly trainedVirtual Sales Executives deliver proposals online,implement demonstrations or complete transactionsover the phone and Web — broadening Xerox’scustomer contact.

Xerox Europe Oxford Road, UxbridgeMiddlesex, UB8 1HSUnited KingdomArmando Zagalo de Lima, president

Xerox Europe markets Xerox products, servicesand associated offerings across 17 countries. It is

15

H o w X e r o x S e l l s

“If we look at the future, I believe that we have made the

right decisions by staying concentrated on competitiveness

without sacrificing R&D....Earnings from product sales

have increased...our revenue has stabilized. It is now time

to grow again.”Anne Mulcahy, in France’s Les Echos, “For Xerox, Priority is Growth”

March 4, 2005

Paper, Supplies and Supply Chain Operations800 Phillips RoadWebster, NY 14580Wim T. Appelo, vice president

This group, which reports to Business GroupOperations, is responsible for worldwide manufac-turing and distribution of Xerox products, suppliesand service parts. It also manages the XeroxSupplies Business Group.

The division essentially encompasses all aspectsof equipment delivery, including procurement ofmaterials and products, manufacture of equipment,and delivery of finished products to customers.

It maintains the company’s central globalpurchasing function, handling purchasing for non-production contracts, such as travel and officesupplies, and for production materials, such as plastics, circuit boards and acquired products. Theorganization also designs, implements and governsXerox environmental, health and safety initiativesand programs.

Xerox manufacturing and distribution facilitiesare managed to the highest quality and environ-mental standards; all manufacturing factories areISO 9000 and 14001 certified. Extensive employeetraining and involvement is practiced, and the useof quality tools, such as Lean Six Sigma, is perva-sive. In North America, Xerox’s manufacturing,distribution and services workers are representedby labor unions, including UNITE-HERE! andothers, which collectively represent about 2,700workers in the United States and Canada. Xerox is the only union-represented office equipmentmanufacturer worldwide.

Manufacturing and distribution facilities arelocated around the world. The company’s largest

site is in Webster, N.Y., where among other prod-ucts it makes fusers, photoreceptors and XeroxiGen3 systems and components.

Xerox works increasingly with partners such asFuji Xerox, Flextronics International and others on aspects of design, manufacturing and distribu-tion. Suppliers and partners continue to produceXerox equipment and components under the same high quality standards that customers rely on from Xerox.

Corporate Strategy and Alliances800 Long Ridge RoadStamford, CT 06904John E. McDermott, vice president

The Corporate Strategy Office is responsible forleading Xerox’s strategic management processesand corporate development activities. It is alsoresponsible for Fuji Xerox relations and managesXerox’s alliances with other companies that arepositioned to integrate their offerings with Xerox’sportfolio of systems and services.

This organization also manages the corporation’sinvolvement with mergers, acquisitions and divestitures.

H O W X E R O X O P E R A T E S

Manufacturing and Business SupportTHESE GROUPS PROVIDE CRITICAL SYSTEMS, SERVICES AND SUPPORT TO XEROX BUSINESS

OPERATIONS AND EMPLOYEES, WHETHER MANAGED LOCALLY OR AS CENTRALIZED

CORPORATE INITIATIVES.

16

H o w X e r o x O p e r a t e s

management and more. In addition, the officeprovides a consistent “risk management” frame-work for the company to identify and prioritizerisks that may affect business objectives, and itassures monitoring and mitigation of these risks.

The Business Ethics and Compliance officeensures Xerox promotes and maintains a culture of integrity, openness and inclusion; provides anEthics Helpline for employees to seek guidance or raise issues; and conducts ethics training andannual policy acknowledgements.

Xerox Lean Six Sigma Xerox Square100 S. Clinton Ave.Rochester, NY 14644Arthur C. Fornari, vice president and corporatedeployment officer

Since early 2003, Xerox people have been usingXerox Lean Six Sigma tools and methods in bothinternal projects and projects for customers. Theseprojects focus on reducing waste and increasingeffectiveness in vital business processes to bringmeasurable improvements in results for customersand the company.

The Xerox Lean Six Sigma organization isresponsible for governing and supporting theprogram throughout Xerox, including managingcertification standards, providing training resourcesand coaching, and tracking projects’ financialaccomplishments.

By year-end 2004, more than 600 Master BlackBelts and Black Belts worked across the company,leading more than 1,100 projects and integratingLean Six Sigma tools into daily operations and intothe services Xerox offers to customers. About 2,500Green Belts and 18,000 Yellow Belts have beencertified as well.

External and Legal Affairs800 Long Ridge RoadStamford, CT 06904J. Michael Farren, vice president, general counseland corporate secretary

External and Legal Affairs manages Xerox’s legalmatters and interactions with governments andgovernment organizations around the world. Itrepresents the company across a range of legal,trade, tax policy, financial, regulatory compliance,intellectual property, and related issues — bothinternationally and at the state and federal levels in the United States. The group also helps leadXerox’s activity with associations such as TheBusiness Roundtable, the U.S. Chamber ofCommerce, the National Association ofManufacturers and others.

Office of the Chief Financial Officer800 Long Ridge RoadStamford, CT 06904Lawrence A. Zimmerman, chief financial officer

This office leads Xerox’s financial operations,planning, internal controls and audit operationsworldwide. It guides the capital structure of thecorporation, including developing worldwidefunding strategies; interfaces with the capitalmarkets and credit rating agencies; and managesXerox’s relationships with financial analysts andothers in the investment community.

Office of the Chief Staff Officer and Chief Ethics Officer800 Long Ridge RoadStamford, CT 06904Héctor J. Motroni, chief staff officer and chief ethics officer

This office leads critical functions that supportXerox people: human resources designs innovativeprograms to make Xerox a great workplace;corporate public relations and communicationsmanages external and internal messages; and ageneral services team provides aviation, travel andmeeting services, a Xerox resource library, facilities

17

H o w X e r o x O p e r a t e s

“If revenue growth returns on schedule and balance-sheet

improvements continue, Xerox shares can generate nifty

returns for some time to come.”Barron’s, “Copy This: Xerox Image is Brightening Again”

Nov. 1, 2004

Developing Markets Operations is responsible formarketing, direct sales, distribution programs andservice operations for the full line of Xerox products,supplies and services in more than 130 countriesoutside of the United States, Canada, WesternEurope, Japan and the Pacific Rim.

Major markets within DMO include Africa,Central and South America, Eastern Europe,Eurasia, India, Mexico, the Middle East and Russia.In these developing economies, which serve morethan half the world’s population, DMO manages the Xerox business through operating companies,subsidiaries, joint ventures, affiliates, concession-aires, distributors, resellers and dealers.

The same cultural, business and ethical valuesthat are the foundation of the strong global reputation and recognition of the Xerox brandguide Developing Markets Operations. In 2004,DMO had more than $1.7 billion in annual revenue.

Developing Markets Operations800 Long Ridge Road Stamford, CT 06904 Jean-Noël Machon, president

Latin American Countries and Regions

Xerox of Brazil Ltd.Av. Rodrigues Alves, 261 3º Andar, Gamboa,CEP 20 220 360 Rio de Janeiro, Brazil Olivier Ferraton, vice president and general manager

Xerox Brazil is a technology leader and offers thefull complement of Xerox sales, services and support.It has marketing, sales and business operations

in Rio de Janeiro and São Paulo and operatesmanufacturing facilities in Manaus and Salvador.The company manages one of Latin America’slargest document processing and productioncenters near São Paulo. Xerox Brazil serves themarket through both direct sales and service representatives in major population centers, and an indirect channel of concessionaires, dealers and resellers in other areas. The company wasformed in 1965 and employs about 1,700 people.

Xerox Latin Group 800 Long Ridge Road Stamford, CT 06904 Richard Adamo, vice president and general manager

The Xerox Latin Group provides the full range ofXerox products and services. The group managesmarketing, sales, product support and business serv-ices operations in all markets in Central and SouthAmerica and the Caribbean except Brazil. In largermarkets including Argentina, Chile, Colombia,Mexico, Peru and Venezuela, operations aremanaged through wholly owned subsidiaries.Distributors serve smaller markets.

D E V E L O P I N G M A R K E T S O P E R A T I O N S

Tapping Worldwide Growth Opportunities

18

D e v e l o p i n g M a r k e t s O p e r a t i o n s

DEVELOPING MARKETS OPERATIONS IS FOCUSED ON GROWTH OPPORTUNITIES FOR XEROX PRODUCTS

AND SERVICES IN THE EMERGING MARKETS AND DEVELOPING ECONOMIES OF THE WORLD.

“Xerox owns solutions in the market to manipu-

late the document in all its stages. In the same

way, Xerox works in the development of new

technologies that will make history in the future

of document management.”La República, Colombia

Feb. 23, 2005

Xerox India Ltd.DLF Square, DLF City Phase 2 Jacaranda - Marg Gurgaon 122 002, India Andrew Horne, vice president and general manager

Xerox India Ltd. began operations in 1983 withjoint ventures involving Xerox and Modicorp, anIndian company. In 1999, the joint ventures weremerged, and the enterprise is now a Xeroxmajority-owned subsidiary operated by Xerox.Xerox India operates manufacturing and softwaredevelopment centers in Rampur and New Delhiand markets a wide range of Xerox products andservices. The company employs about 800 peopleand is expanding its network of local partners,dealers and resellers.

Xerox International Group

International Group Operations Waterside, Oxford Road, UxbridgeMiddlesex, UB8 1HSUnited Kingdom Jule E. Limoli, vice president and general manager

DMO groups its Eastern operations, includingAfrica, Eurasia, central and eastern Europe, India,the Middle East and Russia into this U.K.-basedorganization. Some of its larger country operationsare listed here.

Xerox International Distributor OperationsWaterside, Oxford Road, Uxbridge Middlesex, UB8 1HS United Kingdom Roy Harding, vice president and general manager

Established in 1987, Distributor Operations isresponsible for developing the Xerox business inmore than 60 countries across Africa and theMiddle East through a combination of joint-equityventures (as in Saudi Arabia and the United ArabEmirates) and partnerships with local distributors.

Central Europe, Egypt and IsraelWaterside, Oxford Road, Uxbridge Middlesex, UB8 1HS, United KingdomAlan Charnley, vice president and general manager

This group serves as the regional headquarters forXerox’s operations in central and eastern Europe,comprised of Croatia, Czech Republic, Hungary,Poland, Slovakia and Slovenia. It also providessenior management direction to the operations inEgypt and Israel. The company operates through a combination of a direct sales force and anexpanding network of local partners and resellers.

Xerox Eurasia Region5, Ogorodnaya Sloboda Pereulok Moscow 101000, Russia Igor Simonov, vice president and general manager

Xerox first exhibited its products in Russia in thelate 1960s and opened a sales office in Moscow in1974. Today, Xerox Russia conducts businessthrough sales operations in major centers as well as through a network of dealers, distributors andresellers. Xerox has eight offices in Russia andemploys about 300 people.

From Moscow, Xerox also manages its operationsin the Eurasian region, including Azerbaijan, Belarus,Bulgaria, Estonia, Kazakhstan, Latvia, Lithuania,Romania, Tajikistan, Ukraine and Uzbekistan.

19

D e v e l o p i n g M a r k e t s O p e r a t i o n s

This successful enterprise, incorporated in 1962, marketsthe Xerox brand throughout most of Asia, is respon-sible for the design and manufacture of many digitalcolor copiers and printers for Xerox worldwide, and is an active partner in research and development.

With more than $9.5 billion in annual revenue,Fuji Xerox Co. Ltd. derives approximately 74 percentfrom business in Japan, 12 percent from Xerox, and 13 percent in the Asia Pacific region outside of Japan.It is a market leader in Japan in both digital and color products.

Xerox’s 2004 consolidated profits include $127million contributed by the equity method ofaccounting from Fuji Xerox. Fuji Xerox revenuesare not consolidated in Xerox accounting state-ments, and its fiscal year is April through March.

Fuji Xerox invested $704 million in research anddevelopment in 2004. Fuji Xerox R&D expendituresare principally focused on the Office segment.

The company has manufacturing facilities in Ebina,Niigata, Suzuka, Takematsu, and Toyama, Japan;Shanghai and Shenzhen, China; Inchon, South Korea;and Tao Yuan,Taiwan. Fuji Xerox has 36,000 employees,including 13,000 in Fuji Xerox Co. Ltd. in Japan. Formore information, visit www.fujixerox.co.jp/eng/.

Fuji Xerox Co. Ltd.2-17-22 AkasakaMinato-ku, Tokyo 107-0052, Japan Yotaro Kobayashi, chairmanToshio Arima, presidentHideaki Takahashi, deputy president

Some Key Divisions:

International Business Group New World Tower, 29th Floor300 Huai Hai Middle RoadShanghai 200021, ChinaYoshiaki Takahashi, president

The International Business Group manages the FujiXerox business in Asia outside of Japan, includingFuji Xerox Asia Pacific Pte. Ltd. — which conductsbusiness in Australia, Indonesia, Malaysia, NewZealand, the Philippines, Singapore, South Korea,Taiwan, Thailand and Vietnam — and Fuji Xerox(China) Limited Inc., created after Fuji Xeroxacquired Xerox’s China operations in December2000. It conducts business in China and Hong Kong.

FX Palo Alto Laboratory Inc.3400 Hillview Ave., Bldg. 4 Palo Alto, CA 94304 James Baker, president and chief executive officer

Incorporated in 1995, the lab researches softwareand information technology for Fuji Xerox. Researchis often conducted in collaboration with Xerox.Together, Xerox and Fuji Xerox have consistentlyrated among the world’s top technology innovators.

F U J I X E R O X

Fuji Xerox, a 25/75 Joint Venture.... . .WITH XEROX AND FUJI PHOTO FILM CO. LTD., IS THE HUB OF XEROX

OPERATIONS IN JAPAN AND THE MARKETS IN THE PACIFIC RIM.

20

F u j i X e r o x

A Powerful PartnershipXerox International Partners, established in 1991 as a joint venture between Fuji Xerox Co.

Ltd. and Xerox Corporation, sells digital marking engines, full-system printers and digital

copiers to original equipment manufacturers for resale under the OEM brand name.

XIP products are developed and manufactured by both companies and may also be sold

under the Xerox brand name. Xerox is a 51 percent partner, Fuji Xerox is a 49 percent

partner, and both are equally represented on the XIP owner’s board.

Based in Palo Alto, Calif., XIP is led by Sunil Gupta, president and chief executive officer

of the organization. XIP has a reporting relationship with Xerox’s Paper, Supplies and

Supply Chain Operations group.

It’s satisfying to earn a great reading from editors,customers and product reviewers — and Xerox products succeed time and again. Among recent highlights:

Better Buys for Business:“Editor’s Choice” awards for the WorkCentre Pro 3545Advanced Color Multifunction System, CopyCentreC3545 Color Copier and DocuColor 3535 ColorCopier-Printer.

“Editor’s Choice” awards for the Xerox Nuvera100/120 Digital Copier/Printers, Xerox Nuvera 100/120 Digital Production Systems and the DocuTech 6135 Production Publisher.

Buyers Laboratory Inc.:“Outstanding Achievement” award for MultifunctionalImaging Device User Interface. The user interfacestood out for ease of use, intuitive design and graphics capabilities.

Graphic Arts Technical Foundation:“InterTech Technology Award” for the Xerox iGen3Digital Production Press.

“Gold Ink” awards sponsored by Printing Impressionsand PrintMedia magazines, for output created on theXerox iGen3 press.

Industry Analysts Inc.:Rated Xerox color and black-and-white printer products best among six other printer vendors in the April 2004 Printer Product User Survey.

The International Association of Printing House Craftsmen:“International Gallery of Superb Printing” awards for output created on the Xerox iGen3 and theDocuColor 6060 Digital Color Press.

“Best of the Best” awards for output created on theXerox iGen3, DocuColor 6060 and DocuColor 2045Digital Color Press.

Network Computing:“Well-Connected Award” and “Editor’s Choice”award for the WorkCentre Pro C2636 Advanced Color Multifunction System.

PC Magazine:“Editor’s Choice” awards for the Phaser 7750 Color Laser Printer, Phaser 4500 Network LaserPrinter and Phaser 5500 Network Laser Printer.

PC World:“Best Buy Award” for the Phaser 8400 solid ink color printer.

21

C o r p o r a t e a n d P r o d u c t A w a r d H i g h l i g h t s

Xerox’s commitment to being an employer that respects its people, communities and neighbors has consistently been recognized over the years by external organizations. Among recent highlights:

Business Ethics:Names Xerox No. 10 on 2005 list of “100 BestCorporate Citizens.”

DiversityInc:Ranks Xerox No. 7 among “Top 50 Companies forDiversity,” as well as No. 4 for African-Americanemployees, No. 5 for recruitment and retention, andNo. 9 for supplier diversity.

Essence:Names Xerox among “35 Great Places to Work” in2005 for African-American women.

Fortune:Ranks Xerox No. 2 in its industry on 2005 “GlobalMost Admired Companies” list, and No. 1 in itsindustry in the “social responsibility” category.

Fortune:Ranked Xerox on America’s “50 Best Companies forMinorities” list for seven out of seven years.

Hispanic Magazine:Names Xerox to its “Corporate 100: The One Hundred Companies Providing the MostOpportunities for Hispanics.”

Human Rights Campaign’s Corporate Equality Index:Notes Xerox is one of only 56 companies to earn aperfect score.

Innovest/Corporate Knights:Includes Xerox in its inaugural list of “Global 100Most Sustainable Corporations in the World.”

Latina Style:Names Xerox among “50 Best Companies for Latinasto Work For.”

National Association for Female Executives:Ranks Xerox No. 8 among “Top 30 Companies forExecutive Women” in 2005.

C O R P O R A T E A N DP R O D U C T A W A R D H I G H L I G H T S

D I R E C T O R S A N D O F F I C E R S

Working Together,Achieving Success

22

D i r e c t o r s a n d O f f i c e r s

Chairmen

2002–present Anne M. Mulcahy

1991–2001 Paul A. Allaire

1985–1991 David T. Kearns

1971–1985 C. Peter McColough

1966–1971 Joseph C. Wilson

1961–1966 Sol M. Linowitz

1960–1961 Harold S. Kuhns

1958–1960 John B. Harnett

1953–1958 Homer A. Piper

1946–1952 Joseph R. Wilson

1944 –1946 Raymond F. Leimen

1938–1944 Gilbert E. Mosher

Chief Executive Officers

2001–present Anne M. Mulcahy


1999–2000 G. Richard Thoman





Presidents

2000–2001 Anne M. Mulcahy

1997–2000 G. Richard Thoman



1971–1977 Archie R. McCardell



1938–1946 Joseph R. Wilson

1912–1938 Gilbert E. Mosher

1906–1912 George C. Seager

Directors

Glenn A. BrittChairman and Chief Executive OfficerTime Warner CableStamford, Conn.

Richard J. HarringtonPresident and Chief Executive OfficerThe Thomson CorporationStamford, Conn.

William Curt HunterDean and Distinguished Professor of FinanceUniversity of Connecticut School of BusinessStorrs, Conn.

Vernon E. Jordan, Jr.Senior Managing Director Lazard Freres & Co., LLC New York, N.Y.Of Counsel Akin, Gump, Strauss,Hauer & Feld, LLP Attorneys-at-Law,Washington, D.C.

Hilmar Kopper Former Chairman and Chief Executive OfficerDeutsche Bank AG Frankfurt, Germany

Ralph S. Larsen Former Chairman and Chief Executive Officer Johnson & Johnson New Brunswick, N.J.

Robert A. McDonald Vice Chairman,Global OperationsThe Procter & Gamble Co.Cincinnati, Ohio

Anne M. Mulcahy Chairman and Chief Executive Officer Xerox Corporation Stamford, Conn.

N.J. Nicholas, Jr.Investor New York, N.Y.

Ann N. ReeseExecutive Director Center for Adoption PolicyRye, N.Y.

Stephen RobertChancellor, Brown UniversityChairman Robert Capital Management, LLCNew York, N.Y.

“Anne Mulcahy could be in the midst of

producing one of the biggest turnarounds

in business history, ranking with the jobs

Lee Iacocca did at Chrysler Corp. and

Lou Gerstner managed at International

Business Machines Corp.”

The Wall Street Journal, “Powerful Women”

Nov. 8, 2004

23

D i r e c t o r s a n d O f f i c e r s

Corporate Officers

Anne M. Mulcahy Chairman Chief Executive Officer

Ursula M. Burns Senior Vice President President, Business Group Operations

Thomas J. Dolan Senior Vice President President, Xerox Global Services

James A. Firestone Senior Vice President President, Xerox North America

Hervé J. Gallaire Senior Vice President President, Xerox Innovation Group and Chief Technology Officer

Michael C. Mac Donald Senior Vice President President, Global Accounts and Marketing Operations

Jean-Noël MachonSenior Vice PresidentPresident, Developing Markets Operations

Héctor J. Motroni Senior Vice President Chief Staff Officer and Chief Ethics Officer

Brian E. Stern Senior Vice President President, Fuji XeroxOperational SupportCorporate Strategy and Alliances

Lawrence A. Zimmerman Senior Vice President Chief Financial Officer

Quincy L. AllenVice PresidentPresident, Production Systems Group Business Group Operations

Wim T. AppeloVice PresidentPaper, Supplies and Supply Chain OperationsBusiness Group Operations

Harry R. Beeth Vice President Controller

Guilherme M.N. Bettencourt Vice President Chairman, Xerox Comercio e Indústria (Brazil) Developing Markets Operations

Michael D. BranniganVice PresidentPresident, North American Solutions GroupXerox North America

Richard F. CerroneVice PresidentSmall and Medium Business Task ForceBusiness Group Operations

M. Stephen CroninVice President Chief of StaffDeveloping Markets Operations

Patricia A. Cusick Vice President Chief Information Officer Business Group Operations

Kathleen S. Fanning Vice PresidentWorldwide Taxes

J. Michael Farren Vice President External and Legal Affairs,General Counsel and Corporate Secretary

Anthony M. Federico Vice President Platform Development Unit Production Systems GroupBusiness Group Operations

Emerson U. Fullwood Vice President Chief of Staff and MarketingXerox North America

D. Cameron HydeVice PresidentGeneral Manager, NorthAmerican Agent OperationsXerox North America

Gary R. Kabureck Vice President Chief Accounting Officer

James H. Lesko Vice PresidentInvestor Relations

John E. McDermottVice PresidentCorporate Strategy and Alliances

Ivy Thomas McKinneyVice PresidentDeputy General Counsel

Patricia M. Nazemetz Vice President Human Resources

Russell Y. Okasako Vice President Taxes

Rhonda L. Seegal Vice PresidentTreasurer

Leslie F. Varon Vice PresidentFinance and Operational SupportXerox North America

Tim WilliamsVice PresidentPresident, Xerox Office GroupBusiness Group Operations

Armando Zagalo de Lima Vice President President, Xerox Europe

M A J O R X E R O X L O C A T I O N S

A Global Company

24

M a j o r X e r o x L o c a t i o n s

U.S. LocationsAdministration

CaliforniaEl SegundoSanta Ana

ConnecticutStamford

District of ColumbiaWashington

FloridaMiami Lakes

IllinoisChicago

New YorkRochester

OhioCincinnati

OklahomaOklahoma City

OregonWilsonville

Research

CaliforniaEl SegundoPalo Alto

New YorkRochester Webster

Customer OperationsXerox sales and service are available in all 50 states and the District ofColumbia. For the locationof the nearest sales office,call 800-ASK-XEROX.

InternationalLocationsAdministration

BrazilRio de Janeiro

CanadaToronto

IndiaGurgaon

RussiaMoscow

United KingdomMiddlesexUxbridge

OregonWilsonville

TexasLewisvilleIrving

VirginiaLeesburgMcLean

Manufacturing,Engineering andAssembly

CaliforniaEl Segundo

New YorkWebster

25

M a j o r X e r o x L o c a t i o n s


BrazilManausSalvador

CanadaMississaugaOakville

EgyptCairo

IndiaRampur

IrelandDundalk

MexicoNogales

NetherlandsVenray

SpainCoslada

United KingdomMitcheldean

Research

CanadaMississauga

FranceGrenoble

United KingdomWelwyn Garden City(Development Center)

Customer OperationsThrough either a directsales presence or anetwork of distributorsand partners, Xerox offersproducts and services inmore than 160 countries.

AfghanistanAlbaniaAlgeriaAngolaAnguillaAntiguaArgentinaArmeniaArubaAustriaAzerbaijan

BahamasBahrainBangladeshBarbadosBarbudaBelarusBelgiumBelizeBeninBermudaBhutanBonaireBosniaBotswanaBrazil BulgariaBurkina FasoBurundiCameroonCanadaCape VerdeCayman IslandsCentral African RepublicChadChileColombiaCongoCosta RicaCroatiaCuracaoCyprusCzech RepublicDenmarkDjiboutiDominicaDominican RepublicEcuadorEgyptEl SalvadorEritreaEstoniaEthiopiaFalkland IslandsFinlandFranceGabonGambiaGhanaGibraltarGeorgiaGermanyGreece GrenadaGuatemalaGuineaGuyanaHaitiHerzegovinaHondurasHungaryIndiaIranIrelandIsraelItalyJamaicaJordanKazakhstanKenyaKuwaitKyrgyzstanLatviaLebanonLesothoLiberiaLithuania

MacedoniaMadagascarMalawiMaliMaltaMauritania Mauritius MexicoMongolia MontenegroMorocco MozambiqueNamibiaNepalNetherlandsNicaraguaNigerNigeriaNorwayOmanPakistanPalestinePanamaParaguayPeruPhilippinesPolandPortugalQatarRomaniaRussiaRwandaSt. Kitts and NevisSt. LuciaSt. MaartenSt. Vincent and the

GrenadinesSao Tome and PrincipeSaudi ArabiaSenegalSerbiaSeychellesSierra LeoneSlovakiaSloveniaSomaliaSouth AfricaSpainSri LankaSudanSurinameSwedenSwitzerlandSwazilandSyriaTajikistanTanzaniaTogoTortolaTrinidad and TobagoTunisiaTurkeyUgandaUkraineUnited Arab EmiratesUnited KingdomUruguayUzbekistanVenezuelaYemenYugoslavia ZambiaZanzibarZimbabwe

Fuji XeroxOperationsAdministration

ChinaBeijingShanghai

Hong Kong

JapanTokyo

Singapore


ChinaShanghaiShenzhen

IndonesiaJakarta

JapanEbinaSuzukaTakematsuToyama

PhilippinesManila

South KoreaInchon

TaiwanTao Yuan

Research

JapanEbinaNakaiTakematsuYokohama

United StatesPalo Alto

Customer Operations

AustraliaChinaIndonesiaJapanMalaysiaNew ZealandSingaporeSouth KoreaTaiwanThailandVietnam

M A J O R P R O D U C T S

Currently Marketed in the U.S.

26

M a j o r P r o d u c t s C u r r e n t l y M a r k e t e d i n t h e U . S .

DocuTech 6100

DocuTech 6115

DocuTech 6135

DocuTech 6155

DocuTech 6180

iGen3 110 Digital Production Press

Xerox 510 Wide Format Printer


Xerox 2101 Copier-Printer

Xerox 4110 Copier-Printer



Xerox 8142 Color Wide Format Printer

Xerox 8160 Color Wide Format Printer

Xerox Nuvera 100/120 Copier-Printer

Xerox Nuvera 100/120, 100/120 MX Digital Production System

Printers/Printing Systems/Presses

Networked Office Printers

Phaser 3150

Phaser 3450

Phaser 4500

Phaser 5500

Phaser 6100

Phaser 6250

Phaser 7300

Phaser 7750

Phaser 8400

Phaser EX7750

Xerox 2101

Xerox 4110

Production

DocuColor 2045

DocuColor 3535

DocuColor 5252

DocuColor 6060

DocuColor 7000

DocuColor 8000

DocuPrint 75/75MX

DocuPrint 90

DocuPrint 92C Highlight Color

DocuPrint 100/100MX EPS





DocuPrint 350/700 Continuous Feed




DocuTech 75

DocuTech 90

DocuTech 128/155/180 Highlight Color

DocuTech 135

Office Networked Printers

Phaser 6100

Phaser 6250

Phaser 7300

Phaser 7750

Phaser 8400

Phaser EX7750

Multifunction Systems

DocuColor 12 Copier-Printer

DocuColor 3535

WorkCentre C2424

WorkCentre M24

WorkCentre Pro C2128



Color ProductsProduction Printers/

Printing Systems/Presses

DocuColor 2045

DocuColor 5252

DocuColor 6060

DocuColor 7000

DocuColor 8000

DocuPrint 92C Highlight Color

DocuTech 128/155/180 Highlight Color

iGen3 110 Digital Production Press



Office Copiers

CopyCentre C2128

CopyCentre C2636

CopyCentre C3545

27

M a j o r P r o d u c t s C u r r e n t l y M a r k e t e d i n t h e U . S .

Multifunction Systems

DocuColor 12 Copier-Printer

DocuColor 3535

FaxCentre F12

FaxCentre F110

FaxCentre F116

WorkCentre C2424

WorkCentre M15/M15i

WorkCentre M20/M20i

WorkCentre M24

WorkCentre M118/M118i

WorkCentre M123/M128

WorkCentre PE16

WorkCentre PE120/PE120i

WorkCentre Pro 65/75/90

WorkCentre Pro 123/128

WorkCentre Pro 416

WorkCentre Pro C2128/C2636/C3545

Xerox Nuvera 100/120

Copier-Printer

Office Copiers

CopyCentre C20

CopyCentre C65/C75/C90

CopyCentre C118

CopyCentre C123/C128

CopyCentre C2128/C2636/C3545

WorkCentre Pro 416

Xerox 2101

Xerox 4110

Software

Office Environment

CentreWare Web — Xerox DeviceManagement Software

DocuShare Enterprise Content Management

FlowPort — Xerox Image Routing Software

FreeFlow Office Collection

FreeFlow Office Fax Pro

FreeFlow SMARTsend

PhaserSMART — Xerox Web-based Support Software

PrintingScout — Xerox Print Job Completion Notification

PrintXchange

SMART eSolutions

XCounter — Xerox Page

Accounting Software

Xerox Copier Assistant

Xerox Web Document Submission Software

Production Environment

FreeFlow Digital Workflow Collection:

FreeFlow DocuSP

FreeFlow Makeready

FreeFlow Output Manager

FreeFlow Print Manager

FreeFlow Process Manager

FreeFlow Variable Information Suite

FreeFlow Web Services

Supplies

Compatible Laser Print Toner Cartridges

Custom Solutions

Digital Carbonless Paper

Digital Color Imaging Cast-Coated Covers

Digital Color Imaging Coated and UncoatedPapers and Covers

Digital EA Color Transfer Paper

Digital Publishing Papers and Covers

DocuCard ID Card

Labels

Multipurpose Papers, Index and Covers

Premium Digital Carbonless Paper

Presentation and Binding Supplies

Specialty Application Products — brochures, business cards, greeting cards, etc.

Synthetic Media Solutions

Tabs and Dividers

Transparencies

Wide-Format Paper and Specialty Media

Other Hardware Products

DocuMate Scanners

DP 1011 Digital Projector

DP 1015 Digital Projector

FreeFlow Scanner 665

Xerox 6400 Photo Scanner

XC Series CRT Monitors

XG Series LCD Monitors

XL3, XL5, XL7 Series LCD Monitors

Xerox, The Document Company, C20, C35, C45,

C55, C65, C75, C90, CentreWare, Copier Assistant,

CopyCentre, DigiPath, DocuCard, DocuColor,

Document Centre, Document HomeCentre, DocuPrint ,

DocuShare, DocuSP, DocuTech, FaxCentre, FlowPort,

iGen3, M15, M20, M35, M45, M55, Phaser, PhaserSMART,

PrinterMap, PrintXchange, VIPP, WorkCentre, XCounter,

Xprint and 4110 are registered trademarks, and C118,

C123, C128, DocuMate, FreeFlow, M118, M123,

SMARTsend, Xerox Nuvera, 2101, 3535, 4110, 6060,

6030, 6050, 6180, 8142 and 8160 are trademarks of or

licensed to Xerox Corporation in the United States

and/or other countries.


by Year of U.S. AnnouncementFor a complete list of U.S products organized by product category, visit www.xerox.com/factbook

28

M a j o r P r o d u c t s b y Y e a r o f U . S . A n n o u n c e m e n t

1949Model A Copier (Ox Box):First manually operated commercial xerographic printer.

1950s1955Copyflo: First semi-automatic xero-graphic printer; makes continuouscopies on ordinary paper.

1959914: First automatic office copier tomake copies on plain paper; 7 copiesper minute.

1960s1963813: First desktop copier to make copies on plain paper; 7 copies per minute.

1964Long Distance Xerography (LDX):First system for high-speed documentfax transmission using scanners,networks and printers; targeted for businesses with centralized,high-volume applications.

2400: First Xerox duplicator (high-volume copier); 40 copies per minute.

1860: Plain-paper printer produces reduced-size copies from originals of a variety of materials as large as 3 feet by 10 feet.

1966Xerox Magnafax Telecopier: Alsoknown as the Telecopier I; a jointventure between Xerox and MagnavoxCompany; first non-xerographicdesktop fax machine capable of sendingand receiving documents over anydistance using a regular telephone.

660: Fastest table-top, plain-papercopier to date; 11 copies per minute.

1968Copyflo 600: Engineering printerenlarges tiny images from microfilm and reproduces them onto plain paperat 600 prints per hour.

19697000: First Xerox duplicator to reduce;makes two-sided copies manually;60 copies per minute.

1970s19704000: First in the second generation ofcopiers and duplicators; first to provideautomatic two-sided copying; 45 copies per minute.

400: First portable fax machine.

19721000: Last copier using the 914 technology; 15 copies per minute.

19736500: Xerox’s first color copier; makes full-color copies on plain paper and transparencies.

410: First automatic desktop fax machine.

1200: First non-impact xerographicprinter for computer output.

19749200: High-volume, two-sided, plain-paper duplicator; 120 copies per minute.

800 Electronic Typing System: The firstXerox word-processing product; 350words per minute from magnetic tapeor cards.

1975Telecopier 200: First laser, plain-paper fax machine; one of the firstcommercial applications of laser technology in business.

19779700: First xerographic laser printer;120 prints per minute.

5400: First Xerox copier with a built-in diagnostic micro computer; 45 copies per minute.

1979Ethernet: First local area network(LAN) for connecting workstations,printers and other office equipment.

8200: Copier/duplicator that automati-cally feeds originals and producescollated copies without a sorter;70 copies per minute.

2080: World’s first wide-format engineering copier; launches the wide-format engineering industry.

1980s19808000 Network System: Office networkthat allows users to electronically create, process, file, print and distributedocuments.

29


19818010 Star Information System:Industry’s first desktop computer work-station that combines computing, textediting and graphics creation.

Memorywriter 600 Series: Electronic typewriters with internal memory.

495: Automatic fax machine converts information on a page to digital formand compresses it for faster transmission.

19821075: First copier in the Xerox 10 series;70 copies per minute.

19831810 Portable Computer: Fits in a briefcase and operates up to 10 hours on rechargeable batteries.

ECP 42: The first large-format digitalcolor plotter.

1035: Second copier in the 10 Series;the only copier to offer preset modes of both reduction and enlargement;20 copies per minute.

19849900: Duplicator with computerizedprogramming, two-sided copying,stapling and job storage; 120 copies per minute.

1055: Heavily featured copier thatoffers automatic two-sided copying with second-side image shift and variable reduction and enlargement;50 copies per minute.

1985FaxMaster: First software for integration of fax and computer.

6085 Professional Computer System:Sophisticated workstation also runsvarious software programs.

1090: First Xerox high-volume copierhandles a variety of originals, reducesand enlarges, and makes two-sidedcopies; 92 copies per minute.

XPS 700 Series: Publishing systemsinclude terminals for editing and designpagination, composition software andconnections to electronic printers.

19864020: Color inkjet printer that producesdocuments with integrated test andhigh-resolution graphics in seven colors.

990 Viewer/Printer: Makes prints aslarge as 18 by 24 inches from 35mmmicrofilm aperture cards or roll film.

2510: Engineering copier producescopies up to 36 inches wide on paper,vellum or polyester film.

1012: Desktop copier with an industry-first, three-year warranty; 15 copies per minute.

9790: High-volume laser printer withhigh-capacity disk storage and centralprocessing power to print merged textand graphics; 120 prints per minute.

1005: Color copier reduces and enlarges;5 full-color copies per minute.

Conference Copier: Allows one personto take notes for everyone at a meetingusing a writing board linked to copier;99 copies at a time.

7020: First Xerox fax machine to use ordinary, cut-sheet paper; also functions as a copier with automaticspeed dial.

CE 3000: Large-format digital color printer.

19871065: Fully featured mid-volume copier; 62 copies per minute.

Pro Scan System: Computer systemscans in technical drawings and maps,allowing them to be edited on thescreen and then printed or storedelectronically.

19888836 Laser Plotter: First wide-format engineering laser plotter.

5090: Fastest duplicator to date at 135copies per minute; staple stitches andthermal binds pages.

5008: First Xerox personal copier;8 copies per minute.

4090: High-quality laser printer thathandles 4 different paper stocks simultaneously; 92 prints per minute.

1989Remote Interactive Communications:Diagnostic system that transmits copierperformance data via telephone lines;first offered as accessory for the 1090 copier.

5042: Mid-volume copier reproduces images from books and other bound documents without damaging bindings;35 copies per minute.

Xerox Encryption Unit: Electronic encryption device mathematicallyencodes computer signals so they maytravel in top security on ordinary localarea networks.

5080: Engineering printer allows electronic editing of documents up to 36 inches wide.

1990s1990GlobalView: Networked computingsystem for workgroups with the icon-based graphical interface. Includes theintegration of text, graphics and data;the sharing of documents acrossnetworks; and the transmission of electronic mail.

Telecopiers 7032, 7033: High-speed,plain-paper facsimile products designed for hub applications in high-volume faxwork environments.

DocuTech Production Publisher,Model 135: First in series of digitalpublishing systems for businesspublishing from computer workstations:scans, files, prints, finishes; 135 prints per minute.

5065: First Xerox copier with built-inRemote Interactive Communications;62 copies per minute.

7220, 7240, 7260: First Xerox fax prod-ucts available through retail channels;act as convenience copiers and full-function telephones.

3010 Editor: First multifunction digitalfax/copier allows users to revise imagesusing an editing pad.


by Year of U.S. Announcement

30


5011 R/E: Convenience copier makes up to 15 copies per minute; reduces and enlarges at 65, 75 and 130 percentof original.

4018: High-speed digital engineeringprinter/plotter accepts images from a variety of sources including scannersand optical-disk storage devices;reproduces images on plain paper.

19915100: Copier designed for distribution in the United States, Europe and Japan;100 copies per minute.

8840-D: High-speed engineeringprinter/plotter uses plain paper; used with computer-aided design anddrawing management systems.

5775: Digital color copier controlled by a touch screen; 7 copies per minute.

4850hc: Highlight-color laser printerthat prints black and one color (red, blue or green); up to 50 prints per minute.

4135: Cut-sheet, high-volume laserprinter; up to 135 prints per minute.

4197: Xerox’s first magnetic ink character recognition (MICR) laser printer for the desktop.

4235: Laser printer that can beconnected to a remote data center while being used simultaneously as a local workgroup printer; up to 35 prints per minute.

4213: Desktop laser printer that offerstwo-sided printing; up to 13 prints per minute.

5009, 5009 R/E: Copiers for the small office/home office; R/E modelreduces and enlarges; 8 copies per minute.

6540 Workstation: UNIX-based workstation with enhanced graphicscapabilities for working with technical,scientific and financial data.

1992DocuTech Network Publisher: Acceptselectronic and hard-copy originals forlarge printing and publishing jobs.

DocuTech Signature Booklet Maker:Produces saddle-stitched, folded andtrimmed booklets from documentsprinted on a DocuTech system.

7033 LAN Fax Server: Allows PC userson Novell local area networks to sendand receive faxes from workstations.

4700 Digital Color: First full-color,networked laser printer; industry’sfastest to date at 71⁄2 prints per minutein color, 30 prints per minute in blackand white.

7041: Plain-paper, laser-based fax machine transmits a standard business page in 6 seconds.

7124S: Engineering fax/copier transmits and receives documents up to 24 incheswide from personal computers.

3050, 3090: Wide-format, plain-paper engineering copiers for architects and engineers.

5205: Personal copier for the home office; 3 copies per minute.

19935126: Office copier for copying boundvolumes; 26 copies per minute.

5385: Departmental copier offers highlight color.

4890hc: Highlight color, laser printerprints in black plus red, blue or green;92 prints per minute.

4004: Personal inkjet printer; 3 prints per minute.

MajestiK 5760, 5765: Full-color, digitalcopier-printers designed for short-runprinting; 6 color copies per minute.

8900 Series II: Electrostatic color plotters for the engineering industrymake prints up to 44 inches wide.

19943060: Plain-paper, mid-volume engineering copier with zoom optics.

4900: Desktop color laser printer;3 prints per minute for color, 12 for monochrome.

DocuTech 6135: Network productionprinter; 135 prints per minute.

3002, 3004, 3006: Compact digital document devices that fax, PC fax,print, copy and scan; designed for the small office.

7042: High-speed, plain-paper, laser fax reduces telephone line charges by transmitting documents at 6 secondsper page.

DocuPrint 4635, 4635MX: Productionlaser printers; 4635MX prints checksand other financial documents withMagnetic Ink Character Recognitionsecurity symbols.

31


Xerox Documents on Demand:Production-oriented document manage-ment software that simplifies the input,storage, customizing and printing ofmaterials; transforms paper masters intodigital documents.

19955614: First in the 56 copier series,designed to address a broad range ofenvironmental issues including paperrecycling and energy conservation.

ES8180: World’s fastest engineeringcopier-printer to date; delivers 18 printsper minute, up to 24 inches wide, withhighlight color.

7336: Engineering scanner module;wide-format scanner for engineeringdrawings.

SmartPaper Toolkit, DataGlyphsSoftware Developer’s Kit:Complementary technologies forencoding and decoding information for computer-readable data on ordinarypaper, which makes it easier to bringinformation on paper back into electronic form.

Bookmark35 Copy Station: Copier with angled copying surface to protectbook bindings.

Xprint 4915, 4920, 4925: Networkedcolor laser printers with “IntelligentColor” technology that allows officeworkgroups to integrate color andblack-and-white documents using asingle printer.

Regal 5790: Fastest Xerox color copier-printer to date; 9 prints perminute in color; for Macintosh, PC and UNIX networks.

Document WorkCentre 250:Multifunction printer, fax machine,scanner and copier with TextBridgeOCR software for the small office/home office.

Document Centre Systems 20 and 35:First in the Document Centre Systemfamily of digital, networked office docu-ment systems; products print, scan, faxand copy documents for workgroups ofup to 50 people.

CentreWare: Software enablesDocument Centre Systems to performmultiple functions simultaneously.

2230ij: Xerox’s first wide-format inkjet printer for engineering,technical and scientific communities;a black-and-white printer with highlight-color capabilities.

1996DocuPrint 4517: Networked, desktoplaser printer; 17 prints per minute.

DocuColor 40: World’s fastest digitalcolor copier-printer to date; functionsas stand-alone copier and networkprinter; 40 prints per minute.

Document Fax Centre Pro 735: High-capacity, plain-paper laser fax systemthat doubles as a convenience copier.

5624, 5626: Convenience copiers thatcomply with the EPA’s “Energy Star”standards for energy savings; 24 copiesper minute.

8855 Digital Reprographics System:Provides high-speed, high-volumedigital printing that can connectdirectly to client or in-house workstations at 400 dpi resolution.

2240ij: Wide-format color printer forthe engineering market.

PrintXchange: Software that simplifiesprinting across networks and linksseveral types of printers.

19978830: Engineering printer that can beconnected to virtually any PC or network.

DocuColor 5750: Digital color copier-printer; least-expensive color system for the office to date; 6 full-color or 24monochrome copies per minute.

Document Centre 220, 230, 240, 265:Digital office copiers that are first inthe next generation of office documentproducts; modular digital devices canbe upgraded from stand-alone copiersto fully integrated office systems; 20, 30,40 and 65 pages per minute. The 220STand 230ST and LP models providenetwork capabilities.

DocuShare: Document-managementsoftware that allows users to post,manage and share information oncorporate intranets.

DocuTech 6180: Digital productionpublisher; 180 pages per minute;600 dpi laser output.

DocuPrint 180: Digital productionprinter for cut-sheet laser printing of transaction-based documents;180 pages per minute.

DocuColor 70: Digital color press;70 impressions per minute.

5892: Industry’s most compact,high-speed departmental copier to date; footprint of only 68 by 35 inches; 92 copies per minute.

Document HomeCentre: First Xeroxdesktop color product for the small-office/home-office market; combines adetachable color scanner, color inkjetprinter and color copier.

DocuPrint N32, N24: First in a series of network laser printers intended to challenge Hewlett-Packard’s dominance in the retail printer market; 32 and 24 pages per minute.

DocuPrint 135 LMX: Check printer;large-format model for boostingproductivity in commercial checkproduction operations.

Intranet Docs: A Web server-based software enabling universal, real-timeaccess to wide-format digital documents.

1998DocuPrint P12: First Xerox laserprinter for the retail market;12 pages per minute.

5885: High-volume copier equippedwith advanced features including book binding, and to date the fastest ledger-size copying in its class;85 pages per minute.

212, 214: Digital copier-printers offeringsuperior print quality; 12 and 14 copiesper minute; available as stand-alonecopiers or as copier-printers.



32


DigiPath: Integrated digital printingsoftware solution that extends thepower of the DocuTech family ofproduction publishers by enabling print job submission and documentviewing via the World Wide Web.

8830 Digital Document System:Engineering industry’s first multifunc-tional device to offer concurrentprinting, scanning and copying capabilities.

PrinterMap: The industry’s first andonly multi-vendor printer managementsoftware to date that allows networkadministrators to proactively manageand track usage of a range of printersfrom Xerox and competitors.

XD100, 102, 120f: Personal digital lasercopier-printers for the retail market;can connect to the user’s Windows PCto operate as a laser printer; 10 copiesper minute for the 100 and 102;12 copies per minute for the 120f.

DocuColor Office 6: Networked color copier-printer; 6 color and 24 monochrome pages per minute.

5890: Compact, high-volume copier;100 copies per minute.

DocuTech 6100: Entry-level publishingsystem that prints 96 pages per minute.

DocuPrint C20: Xerox’s first entry into the network color inkjet market;8 monochrome or 4 color pages per minute.

DocuTech 65 Publisher: Smallest andlowest-cost model in the DocuTechpublishing series to date; 65 pages per minute.

DocuPrint 180MX: To date, theindustry’s fastest, highest-qualitymagnetic ink character recognitionprinter for producing checks and othernegotiable documents.

DocuPrint 330, 900, 1300: First three models in a new family of DocuPrintproduction printers that print from continuous roll paper.

1999WorkCentre 480cx: Color inkjet printerthat also serves as a color scanner,copier, fax and PC fax; 8 monochromepages or 4 color pages per minute.

WorkCentre XD155df: The industry’sfirst personal digital copier-printer at 15 pages per minute; offers automatictwo-sided copying.

3001: Wide-format copier that includesan automated document handler and improved electronic job accounting option.

DocuColor 4 LP: Laser printer that is the first Xerox product to employ intermediate belt transfer technology;4 full-color pages or 16 black-and-whitepages per minute.

BookMark21 Copy Station: Copier with angled copying surface to protectbound documents; coin- and card-operated models available; 21 copies per minute.

WorkCentre Xi70c: First Xerox inkjet multifunction device using a flatbeddesign; serves as a color printer, copier,scanner and PC fax; the fixed, flatbeddesign allows for the color copying andscanning of any document.

Document Centre 332, 340: Digitalsystems that print, copy and scan at 32 and 40 pages per minute.

ContentGuard: Comprehensive solutionfor rights management of digitalcontent, which enables publishers tocreate new revenue streams throughInternet document distribution;includes tools for publishing, electroniccommerce, user authorization and usage tracking of digital documents.

Digital Books: Service that uses print-on-demand technology to enable bookprinters to digitally store titles andinstantly print the desired quantity.

DocuColor 12: Color copier-printer thatemploys the innovative IntermediateBelt Transfer technology to establish anew standard in color copier-printerreliability, capability and image quality;121⁄2 full-color or 50 black-and-whitepages per minute.

DocuColor 4 CP: Networked copier-printer designed for graphic arts andoffice customers with monthly volumesbetween 3,000 and 5,000; employs theIntermediate Belt Transfer technology;4 full-color or 16 black-and-white pagesper minute.

DocuPrint 92C: Industry’s first black-plus-one-color production printer with 600 dpi print resolution;addresses graphically demanding applications; 92 pages per minute.

DocuPrint P1202: Xerox’s first personal laser printer that can support Macintoshenvironments and PostScript Level 2printing; manual duplexing, 4 MB standard memory, PCL5e and PCL6emulation; 12 pages per minute.

33


WorkCentre XK35c: The industry’slowest-priced color printer that copiesand scans from a flatbed surface; prints8 monochrome or 3 color pages perminute; copies 3 black-and-white or 11⁄2 color copies per minute.

FlowPort: Server software designed tocapture and integrate paper-based docu-ments into a digital workflow to allowfor accessibility, retrieval and distribu-tion — all without the use of a PC.

DocuPrint 900 Plus: Continuous-feedprinter prints PostScript and otherpopular network data streams as fast as 206 feet per minute.

VIPP Tools: Industry’s first family ofopen systems software tools for simpli-fying the development of marketingapplications for non-programmers.

DocumentCentre Color Series 50:Digital networked color copier-printerthat brings color to the Document Centrefamily of multifunction devices; 50monochrome or 121⁄2 full-color pages per minute.

2000s2000WorkCentre XE90fx: Xerox’s first entryinto the flatbed laser multifunctionmarket; combines a flatbed design withan all-in-one laser printer, fax, copierand scanner.

5900, 5900I, 5990, 5995: Family of departmental copiers combining speed and finishing capabilities. 5900 and5900I print 120 pages per minute; 5990and 5995 print 100 pages per minute.

DocuPrint N3225, N4025: Monochromelaser printers for medium-to-large workgroups, with speeds of 32 and 40pages per minute; both have extensiveproduction-level paper handling with a266 MHz processor.

WorkCentre Pro 555, 575, 665, 685,765, 785: A family of business, multi-function fax products designed to tieworldwide connectivity of the Internetto the fax machine; offer traditional fax,copy, PC or network print, scan and PCor LAN fax capabilities to workgroupsup to 25 users.

DocuColor 2060 and 2045 DigitalColor Press: World’s first sheet-feddigital color presses enabling digitalcolor on demand for the graphic arts market; print 60 and 45 pages per minute.

DocuTech 6155: Part of a new suite inthe DocuTech family; prints up to 155pages per minute; features include 600dpi image quality and 7,000-sheet paper capacity.

DigiPath Scanner: Improves scanningproductivity in the DocuTech family;scans at 65 pages per minute at 600 dpiresolution; includes a 100-sheet automaticdocument feeder that scans documentsas large as 12 by 18 inches.

Document Centre 400 Series Family420, 432, 440, 460, 470: Digital copier-printers print, copy, fax and scan; equippedwith a new Intel microprocessor thatboosts document processing speed; runfrom 20 to 65 pages per minute.

DocuColor 130CSX Digital ColorPress: Digital, color, production-levelprinting system based on Web-fed tech-nology; targeted toward graphicarts/commercial printer and in-plantfacilities markets; up to 130 impressionsper minute.

DocuTech 6115: Digital black-and-white printer for the digital publishingindustry; prints 115 pages per minute at600 dpi resolution.

Phaser 1235: Office color printerfeaturing “single-pass” technology thatis up to four times faster than tradi-tional color laser printers; prints 12pages per minute.

DocuPrint 155 EPS: Black-and-whiteprinting system offers large customershigher print speeds, advanced system integration and printing capabilities;equipped with the Xerox DocuSP controller; prints at 155 pages per minute.

WorkCentre M940, M950: Color multifunction products with a flatbedscanner, allowing users to import colorimages to desktops as well as to send

and receive faxes via a PC modem;feature eXpress Mode and InkLogicTechnology; print speeds up to 12 black-and-white or 7 color pages per minute.

2001DocuPrint 75: Cut-sheet, digital,monochrome printer for smaller-sized print operations offers printing transac-tion applications requiring merging of variable data; 600 dpi output, 75 pages per minute.

DocuTech 75: Cut-sheet, digital,monochrome printer engineered for on-demand printing designed withcustomer replaceable units such as fuserand toner; 600 dpi output, 75 pages per minute.

DocuColor 12 Laser Printer:Printer-only version of the DocuColor12 Copier-Printer provides high imagequality that makes it ideal as a proofprinter in pre-press departments andproduction printing operations; printsup to 121⁄2 color or 50 black-and-whitepages per minute with 600-by-600 dpi resolution.

Phaser 2135: Office color printer uses single-pass technology transferring afull-color image to paper in a singlepass using LED technology; equippedwith a 500 MHz Intel processor; prints21 color or 26 black-and-white pagesper minute at 1,200 dpi resolution.

WorkCentre Pro 416: Digital multifunc-tion product that offers importantdigital features for the small-officemarket; equipped with scan-once-print-many capability, electronic collation andbooklet creation; prints and copies at 16 pages per minute.

Document Centre 490: Digital multi-function system for large offices thatcombines printing, copying, faxing andscanning; prints and copies at 90 pagesper minute.

Phaser 3400: First black-and-whiteoffice laser printer to have the Phaserbrand; offers an optional networkconfiguration; prints 17 pages per minute.



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DocuPrint 1000 CFD, 700 CFD,350 CFD: Continuous-feed, digital,black-and-white printers designed forhigh-speed production of publishingand transaction documents; the 700 and1000 models are made up of twin-engineconfigurations, which can print induplex mode; images per minute are353 for the 350 CFD, 708 for the 700CFD and 1,002 for the 1000 CFD.

Phaser 7700: Industry’s first tabloidcolor laser printer capable of speeds of22 pages per minute in color and blackand white; uses single-pass laser tech-nology; supports media sizes from 4 by6 inches to 12 by 18 inches.

1:1 Personalized MarketingCommunications: Solution provides theability to quickly address individualcustomer needs for information; forexample, it can create personalizedmarketing brochures.

DocuPrint 90: Cut-sheet, monochromedigital printer for small and mid-sizeprint operations can create on-demand,personalized documents; speeds up to90 pages per minute at 600 dpi resolution.

DocuTech 90: Entry-level production,monochrome, digital printer thatincludes the Signature Booklet Maker;speeds up to 90 pages per minute.

2002Xerox iGen3: Digital production pressuses Xerox’s patented SmartPress tech-nology; has replaceable parts designedfor recycling, uses non-toxic dry inks,and generates no hazardous waste; runsat 100 pages per minute and produces6,000 full-color 81⁄2-by 11-inch impres-sions per hour.

Phaser 8200: Solid ink color printeruses single-pass technology, has a 300 MHz processor; prints 16 pages per minute.

Document Centre 535, 545, 555: Digital,black-and-white multifunction systemsdesigned for the small and mid-sizeworkgroups; print at speeds of 35, 45and 55 pages per minute, respectively.

DocuColor 1632, 2240: Color copier-printers for the office and quick-printfirms; use chemically produced EAtoner; print 16 and 22 color pages perminute, and 32 and 40 monochromepages per minute, respectively.

DocuColor 6060: Digital press forcommercial, in-plant and quick-printprinters that can run complex printjobs, including customized documents,around the clock.

FaxCentre F12: First multifunction faxproduct that is customer installablerequiring no training; offers color scanning and two-sided printing;12 copies per minute.

VIPP Software v. 4.0: Industry’s firstsoftware capable of accepting Web-variable content standard XMLdata sets as the variable component forVIPP production.

SquareFold Booklet Maker: Deviceproduces a square-fold edge on saddle-stitched booklets that gives DocuTech products the look and feel of a perfect-bound book.

DocuTech LFP: Large-format paperversions of the DocuTech family that enable printing on stocks larger than 11 by 17 inches.

Invisible Control Marks: Solution forhigh-end printing and publishingsystems; uses an invisible ink bar codethat eliminates visible bar codes withoutsacrificing the automated controls theyprovide; prints bar codes anywhere,even directly over text.

DocuTech EPS: Production printingsystem designed for customers whorequire DocuTech’s built-in finishingcapabilities and the ability to nativelyprint LCDS data streams traditionallyassociated with DocuPrint systems.

DocuSP 3.6: Enhancement to DocuSP,Xerox’s print management softwarethat processes print files and drivesprinters and digital presses; provides a common workflow platform for 26 Xerox production printers.

Phaser 7300: Workgroup color printerusing single pass technology that trans-fers a full-color image to paper in onepass; features a 500 MHz processor;prints 30 color and 37 black-and-whitepages per minute.

WorkCentre Pro 421: Digital multifunc-tion device for small offices and work-groups; includes two-sided printing andcopying with a 100-sheet automaticdocument feeder and two 550-sheetpaper trays; 20 pages per minute.

2003DocuColor 5252: Digital productionpress for the production color market;prints at 52 pages per minute in fullcolor or black and white.

WorkCentre M24: Color-capable office multifunction product for smallworkgroups; prints at 13 color or 24black-and-white pages per minute; has

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printing, scanning and faxing functions;includes 768 MB printing memory.

DocuColor 3535 Printer-Copier: Color multifunction product using EA toner,designed for office departments, graphicarts firms and in-plant print shops;prints and copies up to 35 color ormonochrome pages per minute.

Xerox Copier Assistant: Software usedwith a personal computer and a Xeroxmultifunction system, making it easierfor people who are blind or visuallyimpaired to operate a digital copier.

FreeFlow Digital Workflow Collection:Collection of software and solutionsbased on open standards for the pro-duction industry; helps print providerssimplify work processes, attract newbusiness and better manage print jobs.

DocuPrint 425, 850: Continuous-feeddigital printers for high-volume production of print-on-demand andpublishing segments; both print at 195 feet per minute.

721p, 510dp: Wide-format, monochromedigital printers for engineering, manu-facturing and utility company applica-tions; the 721p is the industry’s fastestprinter with a print speed of 22 D-sizeddocuments per minute, and the 510dpoffers more than 60 configurations.

DocuSP 3.7: Upgrade of the color-capable version of Xerox’s traditionalmonochrome printer controller for theproduction-print environments; used inXerox’s digital color presses.

Horizon Color Works 2000 BookletMaker: In-line document finisher thatproduces professional quality finisheddocuments, including bleed trimming,creasing, folding and stacking.

Xerox Large Format Manual+BookFactory: Configured DocuTech largeformat printer offering a bindingprocess enabling fully digital, in-linebook production from start to finish;solution expands the capability toproduce 6- by 9-inch books.

Xerox Lightweight Paper BookletFactory: Configured DocuTech LWPprinter and finisher produces short-run,on-demand reference documents forpublications up to 160 pages; solutionreduces the thickness and weight of aprinted document.

CopyCentre C32, C40: Digital colorcopiers using EA toner; 32 black-and-white/16 color and 40 black-and-white/22 color pages per minute, respectively.

CopyCentre C35, C45, C55:Monochrome digital copiers for small-to-mid-sized workgroups and offices;copy at 35, 45 and 55 pages per minute,respectively.

CopyCentre C65, C75, C90:Monochrome digital copiers for large-size workgroups and enterprisedepartments; include finishing features;copy at 65, 75 and 90 pages perminute, respectively.

WorkCentre M15, M15i: Basic copier-printers offer essential features of adigital multifunction device; both copyand print at 16 pages per minute; 15iadds color scanning and faxing.

WorkCentre M35, M45, M55: Digital copier-printers produce 35, 45 and 55 pages per minute, respectively;modular and upgradeable to fullynetworked office systems.

WorkCentre Pro 32 Color, 40 Color:Color, advanced multifunction devices using EA toner; operate at 32 black-and-white/16 color and 40black-and-white/22 color pages perminute, respectively.

WorkCentre Pro 35, 45, 55:Monochrome digital multifunctionsystems are compatible with Macintoshand Unix systems and have the abilityto handle Postscript, PCL and TIFFfiles; operate at 35, 45 and 55 pages per minute, respectively.

WorkCentre Pro 65, 75, 90: Xerox’s fastest-to-date, high-performance,network multifunction systems for theoffice; monochrome print speeds of 65,75 and 90 pages per minute, respectively.

DocuPrint 75MX: Production laserprinter that prints checks and othernegotiable documents; designed for themid-volume and distributed productionenvironments; 75 impressions per minute.

Xerox 2101: Digital copier-printertargeting the black-and-white print-on-demand market segment; offersadvanced features such as finishing,printing and network scanning; prints at 101 pages per minute; available as astand-alone copier.

Phaser 6250: Color laser printertargeted for medium-to-large work-groups; 2,400 dpi resolution; prints 26pages per minute.

Phaser 3450: Black-and-white laserprinter for individuals and small work-groups; 1,200 dpi resolution; prints at 25pages per minute.

WorkCentre PE15: Basic multifunctionproduct for personal use within any sizeoffice; prints and copies in black andwhite at 17 pages per minute at 600 dpiresolution; faxes at up to 300 dpi andscans at up to 1,200 dpi in full color,which enables it to send color faxes.

DocuMate Scanners: The first workgroup color scanners developed,marketed and supported by VisioneerInc. to combine scanning, PDF filecreation and document management;first scanners to link directly to DocuShare.

DP 1011 Projector: Compact digitalprojector developed, marketed andsupported by Visioneer Inc. providingone of the brightest projectors in themicroportable class.

XL3, XL5, XL7 Series Monitors: Flat-panel monitors, licensed with ProviewTechnology Inc., are designed for busi-ness, educational and home computerviewing applications.

2004Phaser 6100: Color laser printer for the small and mid-sized office market; with two-sided color printing and 65 MB ofmemory; prints at 21 black-and-white or 5 color pages per minute.



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Phaser 3130: Monochrome compactlaser printer for the small and mid-sized office market; with 32 MB ofmemory; prints at 17 pages per minute.

Document Centre 426, 430: Copier-printers with optional scan, e-mail andfaxing capabilities for small and mediumoffices and workgroups; copy and printat 26 and 30 pages per minute, respec-tively; DC 430 also sold as a digital copier.

Phaser 4500: Black-and-white laserprinter designed for high-capacityprinting; industry’s fastest laser printerin its class at 36 pages per minute,1,200 dpi with edge-to-edge-printing.

Phaser 7750: Color laser printer targeted for graphic design professionals;industry’s fastest printer in its class at35 pages per minute; uses PhaserMatch3.0 and PhaserCal color software.

Phaser 8400: Color printer based on anew solid ink technology platform,industry’s fastest printer in its class at 24 color or black-and-white pagesper minute.

WorkCentre 423, 428: Copier-printers,available through Xerox resellers anddealers, targeted for small and mid-sized businesses; copy and print at 23and 28 pages per minute, respectively;optional scan, fax and Internet faxcapabilities; also sold as a digital copier.

WorkCentre M20, M20i: Black-and-white, digital multifunction devices for the office; offer the ID Card Copy feature, copying both sides of a document onto one side of a piece

of paper; print and copy at 22 pages per minute; the M20i is designed to be networked.

CopyCentre C20: Standalone, black-and-white, digital copier; 22 pages per minute.

Xerox Nuvera 100, 120 DigitalProduction Systems: First black-and-white, digital production systems withthe new name, Nuvera; based on newtechnology that comes close to offsetimage quality; print at 100 pages and120 pages per minute, respectively.

Xerox Nuvera 100, 120 Digital Copier-Printers: Copier-printersformerly known as DocuTech 100, 120Copier-Printers; built on the same break-through technology as the Nuvera 100,120 Digital Production Systems.

DocuPrint 525, 1050 CF: Roll-fed,continuous-feed digital printers thatprint up to 244 feet per minute;designed for creating publishing andtransaction document applications.

Xerox 6030, 6050: Black-and-white,wide-format printing systems designed for printing and scanning for the architecture, construction, engineering,government and manufacturing industries; 600 by 1,200 dpi.

FreeFlow Scanner 665: High-speedscanner for professional print operations; automatically producesprofessional-quality images previouslyachievable only through manual editing; scans at 65 pages per minute.

DocuColor 8000: Digital press forcommercial, in-plant and quick-printprinters; offers flexibility in handlingmixed media and custom paper set-ups;prints at 80 pages per minute.

DP 1015 Projector: Compact, lightweightdigital projector uses Digital LightProcessor technology that produces acontrast ratio of 900:1.

6400 Scanner: First Xerox flatbedscanner for photo consumers that offersa complete archiving solution forphotos, negatives and slides.

FreeFlow Office Collection: Softwareand solutions for the office environmentintended to improve the generation andsharing of documents.

FreeFlow SMARTsend: Softwarecombines FlowPort software andCentreWare Scan Services to deliverone integrated software applicationallowing office workers to capture,transform, store and share documentsusing Xerox multifunction systems.

FreeFlow Office Fax Pro: Entry-level,network server-based fax solutionprovides integrated faxing for thedesktop while also providing walk-upfax capabilities for Xerox WorkCentrePro multifunction systems.

FreeFlow Process Manager, PrintManager, Web Services and Makeready:Software designed to help print serviceproviders and in-plant printers simplifywork processes, attract new businessand better manage print jobs.

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DocuShare 4.0: Latest version ofDocuShare, a secure, Web-basedenterprise content management software offering.

WorkCentre Pro C2128, C2636, C3545:Advanced color multifunction systemsprint at 28 to 45 pages per minute inblack and white, and 21 to 35 pages per minute in color.

CopyCentre C2128, C2636, C3534:Digital color copiers with monochromeprints speeds of 28 to 45 pages perminute and 21 to 35 pages per minutein color.

WorkCentre Pro 123, 128: Advancedmonochrome multifunction systems forsmall to midsized businesses; print at 23and 28 pages per minute, respectively.

WorkCentre M123, M128: Copier-printers offering copy, print andoptional fax capabilities.

CopyCentre C123, C128: Monochromedigital copiers with print speeds of 23 and 28 pages per minute, respectively.

SMART eSolutions: Software suite that simplifies the administration ofXerox devices on the network; first two offerings are MeterAssistant and SuppliesAssistant.

DocuTech 180 Highlight Color: World’sfastest cut-sheet, highlight color printingsystem for the print-on-demand andpublishing industry; prints at 180 pagesper minute.

DocuTech 128, 155 Highlight Color:Highlight color printers designed forprint-on-demand and publishing appli-cations, print at 128 and 155 pages perminute, respectively.

Xerox 8142, 8160: Wide-format colorinkjet printers include file-processing software; print at widths of 42 and 60 inches, respectively.

Phaser 5500: Network laser printer foroffice workgroups; prints at 1,200 by1,200 dpi at 50 pages per minute forboth one- and two-sided pages.

Phaser 3150: Desktop laser printer forthe office; prints at 22 pages per minute.

WorkCentre PE 120, 120i: Desktop multifunction device for individualusers and small workgroups; prints at22 pages per minute and is available intwo configurations including optional network printing connectivity.

FaxCentre F116, F116L: Multifunction device offering advanced featuresincluding secure fax, text messaging andphone book programming for 200 speeddials; prints at 16 pages per minute andis available in two configurations.

2005 (through May)WorkCentre Pro 165, 175: Advanced multifunction systems for large office workgroups and light production environments are the first Xerox products to offer FreeFlow SMARTsendsoftware; print at 65 and 76 pages perminute, respectively and offer a 75page-per-minute scanner; available as WorkCentre copier-printers andCopyCentre digital copiers.

Phaser EX7750: Color laser printer forgraphic arts and short-run printing environments combines an EFI Fiery color server with Phaser 7750.

FaxCentre F110: Entry-level business fax with copying, printing and scanningcapabilities; faxes at 3 seconds per page.

4110 Digital Copier-Printer: Black-and-white system for small-to-medium printshops and large offices; offers printing,copying and scanning; industry’s firstlight production device to feature dual-head scanning technology; printsat 110 pages per minute; also offered as a stand-alone copier.

WorkCentre C2424: Industry’s firstoffice color multifunction system withpatented solid ink technology; aimed at small- to medium-sized workgroups,it produces color and black-and-whiteoffice documents at 24 pages perminute and scans at 20 images per minute.

CopyCentre C118: Black-and-whitecopier designed for small to midsizeworkgroups; uses EA toner for sharperand more reliable print quality; copiesat 18 pages per minute.

WorkCentre M118, 118i: Black-and-white multifunction systems print at 18pages per minute; M118i adds fax andscan-to-e-mail features; use EA tonerfor better quality and more reliableprint quality.

iGen3 110 Digital Production Press:Built on the technology of the XeroxiGen3, this press runs 10 to 20 percentfaster, printing standard 81⁄2 by 11-inchjobs at 110 pages per minute andsmaller sheet sizes at up to 120 pagesper minute; enhancements include theXerox SmartSize software andenhanced paper handling with an oversize paper option.

Xerox Nuvera 100 MX, 120 MX DigitalProduction Systems: Black-and-whitedigital production systems that addressthe needs of service bureaus, corporatedata centers, and companies in thefinancial services and insurance industries; enable businesses to produce printed documents requiringmagnetic ink, such as checks and bankstatements; print at 100 and 120 pagesper minute, respectively.

FreeFlow Output Manager: Softwareallows production print providers tomanage the flow of print jobs to themost appropriate networked printer,allowing more control over when andhow a job is printed.

DocuColor 7000 Digital Press: 70-page-per-minute high-end, production color press supporting applications such as print-on-demand, book publishing andpersonalized marketing.

H I S T O R I C A L H I G H L I G H T S

A History of Excellence

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H i s t o r i c a l H i g h l i g h t s

1906 The Haloid Company is founded inRochester, N.Y., to manufacture andsell photographic paper.

Chester Carlson, inventor of xerography, is born inSeattle, Feb. 8.1935Haloid buys Rectigraph Co.

1936First public offering of Xerox stock.

1938Chester Carlson makes first xerographicimage in his lab in Astoria, Queens, inNew York City, Oct. 22.

1942Carlson receives U.S. patent No. 2,297,691on Oct. 6 for electrophotography, latercalled xerography, the technology thatrevolutionized the world of imaging.

1947Haloid acquires license to ChesterCarlson’s basic xerographic patentsfrom Battelle Development Corp. ofColumbus, Ohio, a subsidiary ofBattelle Memorial Institute.

1948Haloid and Battelle announce development of xerography.

The word “Xerox” is trademarked.First of 213 consecutive quarterly dividends is declared.

1949The first xerographic copier, the Model A, is introduced.

1953 Haloid establishes Canadian salessubsidiary, The Haloid Company ofCanada Ltd.

1956 Rank Xerox Limited is formed as jointventure of The Haloid Company andThe Rank Organisation plc.

1958 The Haloid Companychanges name to Haloid Xerox Inc., April 16.1959 The Xerox 914, the first automatic,plain-paper office copier, is announced.

Haloid purchases all worldwide patents on xerography from BattelleMemorial Institute.

1960Research and Engineering Center isestablished in Webster, N.Y.

1961 Haloid Xerox Inc. changes name toXerox Corporation, April 18.

Xerox is listed on the New York StockExchange, July 11. Some 7,700 sharesare traded, and the stock closes at $104for the day.

1962Fuji Xerox Co. Ltd. is launched as ajoint venture of Rank Xerox Limitedand Fuji Photo Film Co. Ltd.

1963 Micro-Systems Inc. is acquired.

Electro-Optical Systems Inc.is acquired.

1964Xerox acquires patent and marketingrights to Central and South Americafrom The Rank Organisation.

1965Basic Systems Inc. is acquired; renamedXerox Learning Systems.

Xerox acquires American EducationPublications Inc.; renamed XeroxEducation Publications; publicationsinclude Weekly Reader.

Rank Xerox opens manufacturing plantin Venray, Netherlands.

1966 Professional Library Service is acquired.

Learning Materials Inc. is acquired.

1967 Cheshire Inc. is acquired.

R.R. Bowker Co. is acquired.

1968 Ginn and Company is acquired.

Chester Carlson dies Sept. 19.

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1969Xerox moves its corporate headquar-ters from Rochester, N.Y., to Stamford,Conn. About 150 employees, includingmost of the company’s executivemanagement, relocate there.

Scientific Data Systems Inc. is acquired.

Xerox acquires majority interest (51.2 percent) in Rank Xerox.

1970 Xerox Computer Services is established.

Xerox Palo Alto Research Center opens in Palo Alto, Calif.Electrostatic printing is introduced.

1971Unipub Inc. is acquired.

Joseph C. Wilson, chairman of theboard, dies Nov. 22.

Fuji Xerox acquires Takematsu andIwatsuki manufacturing plants in Japanand opens manufacturing and researchplant in Ebina, Japan.

1972Diablo Systems Inc. is acquired.

1973Xerox PARC invents protoype of the world’s first personal computer,the Alto, with innovations including the first what-you-see-is-what-you-geteditor, first commercial use of a mouse,graphical user interface, and bit-mappeddisplay. Its commercial descendant wasthe 8010 Star.

1974Xerox International Center for Trainingand Management Development opensin Leesburg, Va.

Xerox Research Centre of Canada inMississauga, Ontario, opens.

Rank Xerox opens new factory inCoslada, Spain, and new assembly plantin Lille, France.

1975“Brother Dominic” advertisingcampaign is launched: “It’s a Miracle.”

Versatec Inc. is acquired.

Xerox ends manufacture and sale ofmainframe computers.

Xerox settles antitrust complaint with U.S. Federal Trade Commission by agreeing to license existing xerographic patents.

1976Last Xerox 914 order is taken; fieldservice on the machine is to continue.

1977The industry’s first laser printer, theXerox 9700 (code-named Dover),is announced.

1978 Xerox receives $25 million from IBMin agreement that ends litigation andleads to exchange of patent licensesbetween the two companies.

1979Xerox Credit Corporation is formed.

1980Kurzweil Computer Products Inc.,maker of reading systems for the blind,is acquired.

First Xerox retail store in the UnitedStates opens.

Fuji Xerox wins DemingPrize, Japan’s highest awardfor quality.1982 The 10 Series copiers are inaugurated:the industry’s first to use built-in micro-computers with a low-bandwidth Ethernetas the communications interface.

1983Xerox acquires Crum and Forster Inc., the insurance group, part of the company’s diversification intofinancial services.

Xerox sells 43 of the 54 Xerox retailstores in the United States to TheGenra Group.

Leadership Through Quality, the Xeroxtotal quality process, is announced.

Venray manufacturing facility wins CIMEI Quality Award in the Netherlands.

Large-format digital color printing is introduced.

1984 Xerox Financial Services Inc. is formed.

Rank Xerox wins British Quality Award.

1985Six publishing companies are sold:AutEx Systems to InternationalThomson Organisation; Ginn andCompany to Gulf+Western IndustriesInc.; Xerox Education Publications toField Corp.; University Microfilms Inc.to Bell & Howell Co.; R.R. Bowker Co. to Reed Holdings Inc.; and XeroxLearning Systems to The Times Mirror Co.

Xerox Financial Services Life InsuranceCo. is formed.

1986Xerox registers www.xerox.com as itsInternet domain name, Jan. 9.

Xerox Research Centre Europe(formerly Rank Xerox EuroPARC)opens laboratory in Cambridge, U.K.

Rank Xerox wins British QualityAward, its second.

1987 Rank Xerox South Africa Pty. Ltd. issold to Fintech Ltd.; becomes Xeratech.

Rank Xerox France wins FrenchQuality Award.

Rank Xerox opens new internationalheadquarters in Marlow, U.K.


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1988Xerox acquires Datacopy Corp.

Marketing agreement with Sears,Roebuck & Co. is signed.

Two-millionth Xerox copier is produced.The Xerox 50 Series of copiers islaunched to recognize 50th anniversaryof xerography.

1989Xerox ceases manufacturing personalcomputers/workstations, which werebased on technology developed in the8010 Star.

Soviet Union’s first public copy centeropens in joint venture with division ofSoviet State Publishing.

Xerox Business Products and Systems organizationwins Malcolm BaldrigeNational Quality Award in the United States.Xerox Canada wins Canadian nationalquality award.

1990U.S. government endorses XeroxEncryption Unit, an electronic devicethat encodes computer signals forsecure transmission.

Xerox Desktop Software Inc. acquiresVentura Software.

Venray, Netherlands, manufacturingfacility receives British AssuranceCertification for commitment toquality, the first non-British Xeroxplant so recognized.

Demand Book Binding Systems Inc. is formed; later renamedChannelBind Corp.

Rank Xerox ends distribution agreement with Xeratech Limited of South Africa.

Total Satisfaction Guarantee program is announced.

“Putting It Together” advertisingcampaign is launched.

Fuji Xerox takes over Rank Xeroxoperations in Australia, Malaysia, NewZealand and Singapore.

Xerox Mexicana S.A. de C.V. winsPremio Nacional de Calidad, theMexican national quality award.

Rank Xerox Australia winsOutstanding Service QualityImprovement Award of Australia.

1991 Collection and recycling of copycartridges begin.

Recycled paper for use in Xerox prod-ucts is introduced.

Color research lab in Webster, N.Y., opens.

Xerox and Fuji Xerox formXerox International Partnersto market desktop and work-group printers worldwide.1992Rank Xerox wins the first EuropeanQuality Award.

Xerox wins Gold Medal for Inter-national Corporate EnvironmentalAchievement from the WorldEnvironment Center.

1993Rank Xerox Research Centre (nowXerox Research Centre Europe) established in Grenoble, France.

Xerox announces decision to exit the insurance business and other financial services.

Xerox International Center for Trainingand Management Developmentrenamed Xerox Document University.

Xerox offers 7 million additional sharesof common stock.

Partnership with MicrosoftCorp. to integrate personalcomputers and documentprocessing products isannounced.Crum and Forster, the commercialproperty and casualty insurancecompany under Xerox FinancialServices Inc., is renamed TalegenHoldings Inc. and is restructured intoseven stand-alone operating groups.

Worldwide company restructuring,including 10 percent reduction in work force, is announced.

Xerox do Brasil Ltda. wins NationalQuality Award in Brazil.

1994“The Document Company —Xerox” isunveiled as new corporate signature;partially digitized, red “X” introduced asnew corporate symbol; red replaces blueas the corporate color.

Rank Xerox Norway wins the firstNorwegian Quality Award. XeroxArgentina wins Argentina’s firstNational Quality Award.

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Electronic Data Systems wins $3.2billion contract to operate the Xeroxworldwide computer and telecommuni-cations network.

1995Xerox pays The Rank Organisation plcnearly $1 billion to increase Xerox’sfinancial stake in Rank Xerox to about80 percent.

Glass Ceiling Commission gives Xerox the first Perkins-Dole NationalAward for Diversity and Excellence inAmerican Executive Management.

Xerox wins Environmental Achievement Award from National Wildlife Federation.

Xerox and Scitex Corp. Ltd. of Israel form alliance to develop digital color printers.

Xerox wins $30 million contract fromU.S. Navy to be the sole supplier of shipboard copiers.

U.S. Labor Department honors Xeroxwith its Opportunity 2000 Award,citing the company’s success inpromoting women and minorities into management.

Xerox ColorgrafX Systems formed; leadsXerox into the graphic arts industry.

1996 Xerox begins treating insurance opera-tions as discontinued operations foraccounting purposes in accordance with its planned exit from financial services businesses.

Board of directors authorizes repur-chase of up to $1 billion in Xeroxcommon stock.

Xerox creates dpiX as a wholly ownedsubsidiary to manufacture and markethigh-resolution, flat panel displayscreens developed at PARC.

Document Sciences Corp., a Xerox technology spinoff company, goes public.

American Foundation for the Blindrecognizes Xerox with its Helen KellerAward in Assistive Technology for thecompany’s Reading Edge machine andfor pioneering products that help theblind lead independent lives.

1997Xerox South Africa is created as jointventure between Xerox and Fintech, anelectronics company. Xerox had beenselling its products in South Africathrough Fintech since 1994, after thefall of apartheid.

Xerox and Fuji Xerox endow the Xerox Disting-uished Professorship inKnowledge at Haas School of Business, University ofCalifornia, Berkeley.Rank Xerox is renamed XeroxLimited, as Xerox buys out itsEuropean partner in the joint venturewith The Rank Group.

Xerox and the University of Barcelona(Spain) establish laboratory for collab-orative research on magnetic materials.

Xerox Business Services wins MalcolmBaldrige National Quality Award in theservice category, the second BaldrigeAward for Xerox Corporation.

Xerox Adaptive Products Inc., makerof technology products for the blind, issold to Telesensory Corp.

All major manufacturing sites world-wide receive ISO 14001 certification.

1998XLConnect Solutions Inc., an informa-tion technology services company, isacquired for $415 million, renamedXerox Connect.

Fairfax Financial Holdings Limited ofToronto agrees to acquire Crum andForster Holdings Inc. The deal effec-tively completes Xerox’s exit from theinsurance business.

Xerox aligns with nation’sleading office productsuppliers: U.S. OfficeProducts, Office Depot,Boise Cascade OfficeProducts, Corporate Expressand Staples, to offer Xeroxpaper and supplies.The biggest anechoic chamber in theWestern Hemisphere opens in theXerox Webster, N.Y., manufacturingfacility. The state-of-the-art room isdesigned to test Xerox products forelectromagnetic interference.

Xerox announces plans to build amanufacturing site in Dundalk, Ireland,and a new customer call center inDublin — a $270 million investment.

Xerox and IBM announce a technologyand marketing agreement to marryIBM’s Lotus Notes and Domino electronic document management environment with the Xerox DocumentCentre family.

Working Mother magazine namesXerox one of the Top 100 “exception-ally progressive” companies for whichto work.

1999Xerox acquires SET Electronique, aEuropean developer and distributor ofhigh-speed digital printers.

Xerox and the town of Webster, N.Y.,agreement ends 1992–1994 tax assess-ment litigation. This results in refundsto Xerox of $9.7 million, includinginterest ($6.5 million before interest).


42


dpiX, a former Xerox New EnterpriseCompany, is purchased by dpiXHolding Company LLC, owned byPlanar Systems Inc. and a consortium.Xerox retains a 20 percent interest in dpiX.

Xerox acquires Omnifax from DankaBusiness Systems.

Xerox experiences the worst day in the company’s history with the fatalshootings of seven employees in theHonolulu, Hawaii, facility.

Xerox partners with Bertlesman ArvatoAg, one of the world’s leading interna-tional book producers, to deploy digitalprint-on-demand technology and solu-tions worldwide.

2000Xerox acquires TektronixInc.’s Color Printing andImaging Division for $925 million.Launch of the next-generationDocuColor 2000 Series of digital colorpresses. About 5,000 are sold in the next two years.

Xerox and Hewlett-Packard settle allpatent-infringement cases, including the six patent-related lawsuits filedbetween May 1998 and June 1999.

Xerox sells Xerox DocumentUniversity campus to WXIII Oxford-DTC Real Estate LLC. Xerox will leaseback part of XDU and continue to hosteducation and learning events.

An Olympic first: At the Sydney 2000Summer Games, Xerox, an officialsponsor, burned the results of everycompetition onto CD-ROMs, creatingelectronic results books.

Xerox details aggressive turnaroundplan with actions centered on improvedcash flow and profitability — cutting $1 billion in costs and selling $2 billionto $4 billion of assets — while workingtoward strengthening its core businesses.

Xerox seals $310 million deal with Kinko’s Inc.,providing them with morethan 2,000 of the latest Xeroxdigital color products, high-speed digital printers, andblack-and-white digital multi-function machines.Xerox completes sale of Xerox (China) Ltd. and Xerox (Hong Kong)Ltd. for $550 million in cash to FujiXerox Co. Ltd.

2001 Xerox sells half of its stake in FujiXerox Co. Ltd. to Fuji Photo Film Co.Ltd., for more than $1.3 billion. Xeroxretains 25 percent ownership interest,and all product and technology agreements between Xerox and FujiXerox continue.

Xerox announces it will exit the SOHO (small-office/home-office) business segment to sharpen thecompany’s focus.

Xerox eliminates stock dividend.

Xerox begins to transfer office manufacturing operations toFlextronics, an electronics manufacturing services company.

2002Anne M. Mulcahy becomesXerox chairman.Xerox incorporates Palo Alto ResearchCenter Inc. as a wholly owned Xeroxresearch company. Xerox continues toembed relevant PARC technology intoits offerings.

“A New Way to Look at It™”advertising campaign is launched.

Digital imaging and repository servicesfacility in Hot Springs, Ark., expandsand more than quadruples its production capacity.

Settlement agreement reached with theSecurities and Exchange Commission,resolving all outstanding accountingissues with the SEC. Xerox neitheradmits nor denies SEC allegations and agrees to restate its financials for1997 through 2000 and adjust 2001 results.

$7 billion revolving line of creditsuccessfully renegotiated, reflectingXerox’s strengthened financial positionand improved operational performance.

43


2002 marks Xerox’s most significantproduct launch year in a decade, with 17 new products and five product platforms, including the Xerox iGen3Digital Production Press.

Xerox and General Electric agree to an 8-year financing arrangement forGE Vendor Financial Services tobecome primary equipment financingprovider for Xerox customers in theUnited States through monthlyadvances against Xerox’s new U.S.lease originations.

Xerox earns its 15,000th utility patent, Sept. 17.

Building on Xerox’s heritage in quality processes, Xerox Lean Six Sigma deployment begins.

Xerox returns to full-year profitability,resulting from successful implementa-tion of its transformation plan inOctober 2000.

2003Xerox Copier Assistant software islaunched, making it easier for peoplewho are blind or visually impaired tooperate a digital copier.

Xerox joins Microsoft and others as afounding sponsor of the InformationWork Productivity Center at MIT;center studies how organizations cantake advantage of technology toincrease productivity.

The IEEE recognizes Xeroxwith the 2003 CorporateInnovation Recognition award,“for its DocuTech product line,which unified digital electronics,computing and communicationswith xerography to create theprint-on-demand industry.” Theprestigious award is presentedannually “for outstanding andexemplary contributions” inelectrotechnology.

Reflecting strong investor confidence,Xerox completes a $3.6 billion recapital-ization that includes public offerings ofcommon stock, 3-year mandatoryconvertible preferred stock, and 7-yearand 10-year senior unsecured notes aswell as a new $1 billion credit facility.Demand for the offerings exceeds initialexpectations, further strengtheningXerox’s balance sheet.

Xerox and General Electric agree to a7-year agreement for GE VFS CanadaLimited Partnership, a unit of GECommercial Finance, to become theprimary equipment financing providerfor Xerox customers in Canada throughmonthly prepayments against Xerox’scustomer contract originations.

Xerox delivers 100th iGen3Digital Production Press.2004Two groundbreaking technology platforms launch: Xerox Nuvera digital copier-printers that create a new mid-production market segment,and the Phaser 8400, the industry’s firstoffice color printer that runs at 24 ppm in color or black-and-white and costsunder $1,000.

Bolstering its No. 1 market share posi-tion in digital production color printing,Xerox achieves 10,000th installation ofDocuColor 2000 Series presses.

Xerox sells its ownership stakes inaskOnce and Scansoft and the majorityof its stake in ContentGuard Inc.,successfully monetizing innovation that originated in its labs.

At the world’s largest printing trade show, drupa 2004, Xerox rolls out sevendigital systems, an expanded suite of services, and workflow tools that reinventtraditional ways of printing and driveprofit for customers.

Xerox marks its 40th and final year ofOlympic sponsorship as a Top OlympicPartner, documenting the legacy of the2004 Summer Games in Athens, Greece.

Xerox’s iGen3 presses reach a milestoneof printing more than 1 billion pagesworldwide since the system’s launch.

Xerox transforms its corporate signature logo to be depicted simply as “XEROX.” The new logo replaces“The Document Company — Xerox”corporate signature, adopted in 1994.

First-ever Innovate in France Awardfrom the French government’s Invest in France Agency is granted to Xerox.

2005 (through May)Sumitomo Mitsui Card Co. of Japaninstalls 24 Xerox iGen3 DigitalProduction Presses, the world’s largestsingle iGen3 installation.

The Gil Hatch Center for CustomerInnovation, a 100,000-square-foot showcase of digital production printingtechnology, opens in Webster, N.Y.

Patrons of Brooklyn Public Librarybegin to easily access library materials,print/copy privileges and more thanksto a debit-based library card and kiosksystem designed by Xerox.

“Color Everywhere” strategystrengthens with a new multimillion-dollar color-focused advertisingcampaign, a faster and more powerfuliGen3 Digital Production Press, and the WorkCentre C2424, the industry’sfirst color multifunction system withXerox-patented solid ink technology.

Xerox makes a voluntary pledge to cut greenhouse gas emissions from itsworldwide operations by 10 percentfrom 2002 to the end of 2012.

Sunoco Inc. chooses Xerox to digitize 5 million hardcopy documents to improveproductivity and records management.

F I N A N C I A L H I G H L I G H T S

44

F i n a n c i a l H i g h l i g h t s

Common Stock Price by Year

YEAR HIGH LOW CLOSE

20042003200220012000199919981997199619951994199319921991199019891988198719861985

Common Stock Splits and Year

YEAR SPLIT

199919961969196319591955193619281923

Five Years In Review 2004 2003 2002 2001 2000Dollars in millions, except per-share data

Total Revenue $15,722 $15,701 $15,849 $17,008 $18,751

Income (Loss)* $859 $360 $91 ($94) ($273)

Net income (Loss) $859 $360 $91 ($94) ($273)

Diluted Earnings (Loss) per Common Share* $0.86 $0.36 $0.02 ($0.15) ($0.48)

Common Shareholders of Record at Year-End 55,152 56,326 57,300 59,830 59,879

Employees at Year-End 58,100 61,100 67,800 78,900 91,500

* These values are for continuing operations.

Rank Among the Fortune 500*

YEAR RANK YEAR RANK YEAR RANK

200420032002200120001999199819971996199519941993199219911990

17.1213.8011.4511.3529.7563.6960.8144.0029.1324.1018.7915.1313.6911.639.68

11.5010.5014.1812.0010.08

12.668.054.304.954.44

19.8833.0925.7519.8916.0814.6311.6311.065.884.839.068.388.388.136.18

17.0113.808.05

10.424.63

22.6959.0036.9426.3122.8416.5014.6913.2111.425.929.549.759.44

10.0010.00

13213011612010987637251412221222221

198919881987198619851984198319821981198019791978197719761975

223432403838383842384036394039

1974197319721971197019691968196719661965196419631962

414140526071

109126145171227294423

* Data above show Xerox’s rank in Fortune magazine’s annual list ofthe 500 largest U.S. corporations, based on company revenue for theyear cited. The list is published in April, reflecting revenue from the previous calendar year.

2 for 13 for 13 for 15 for 14 for 13 for 13 for 15 for 13 for 1

Profit GrowthNet Income (Loss)($ millions)

2000 2001 2002 2003 2004(273)

(94)

91

360

859

Xerox Innovation

Group and CTO

• Research and Technology• Technology Enterprise s• Intel lectual Property

Business GroupOperations

• Engineering Center• Information Management• International Partners

Chairman & CEO

DevelopingMarkets

Operations

Chief FinancialOfficer

• Controller/Audit• Treasury• Ta x• Investor Relations• Lean Six Sigma

• Strategy• Fuji Xerox Relations

Production Systems Group

Xerox OfficeGroup

Paper, Suppliesand Supply Chain

Operations

XeroxNorth America

GlobalAccounts

& Marketing

External andLegal Affairs

General Counsel

Chief StaffOfficer and Chief Ethics

Officer

Fuji Xerox

• Business Operations

• Customer Operations

• Operations Support

Note:

This chart is illustrative only anddoes not show all organizationsor reporting relationships.

• Human Resources• Ethics and Compliance• Risk Management• Corporate Real Estate• Corporate PR and Communications

• Large Global Accounts• Marketing and e-marketing• Advertising• Xerox.com• Strategic PR

• North American Solutions Group • North American Agent Operations • North American Reseller Sales • North American TeleWeb Operations

CorporateStrategy

and Alliances

Xerox Global Services

Xerox Europe

45

O r g a n i z a t i o n a l S t r u c t u r e

O R G A N I Z A T I O N A L S T R U C T U R E

X E R O X G L O S S A R Y

46

X e r o x G l o s s a r y

Basic definitions of some termscommonly used atand around Xerox.AffiliateDirect or indirect subsidiary with exclu-sive rights to market and support Xeroxproducts and services in developingmarkets countries. Xerox maintains anequity investment in its affiliates.

AgentIndependent business in North Americathat takes orders for Xerox productsprimarily from small- and medium-sizedbusinesses. Agents have exclusive salesterritories defined by Xerox (like aEuropean concessionaire).

ChannelHow and where a company sells itsproducts, for example, through areseller, a direct sales representative or the Internet.

ConcessionaireIndependent business in Europe established to sell exclusively Xeroxequipment. Xerox does not own suchcompanies but does support their business activities (like a U.S. agent).

ConsumablesEquipment products such as toner,developer or ink cartridges that can be purchased and installed by thecustomer as needed.

Content managementProcesses involved in organizing,categorizing, and structuring informa-tion resources so that they can bestored, published and reused inmultiple ways. A content managementsystem can collect, manage and publishcontent, storing the content either ascomponents or whole documents,while maintaining the “connections”between components.

Continuous-feed printerProduction machine that is fed nonstopby a roll of paper and can cut eachprinted piece to size. CF printers offerthe industry’s fastest print speeds,around 1,000 images per minute.

ControllerMicroprocessor that performs the RIPand other control functions for printers.On office/workgroup printers, thecontroller is inside. On productionprinters, the controller is typicallyoutside the machine, housed in a sepa-rate PC or workstation. It may also becalled a “digital front end,” “printserver” or “color server.”

Dealer Independent business that sells certaingroups of Xerox products, such asworkgroup fax machines, to end-users.Dealers usually buy their productsdirectly from Xerox and other manu-facturers for resale to their customers.

Digital copierMachine that integrates scanning andprinting functionality to perform thecopy function. Unlike an analog (light-lens) copier, it creates an electronicrepresentation of the image.

Digital press Machine designed to handle high-volumeproduction-level printing, provide flaw-less image quality and offer compati-bility with multiple finishing options,just like an offset press. But comparedto offset, a digital press can produceshort-run jobs more economically, inte-grate with the Internet and incorporatevariable data.

DistributorshipIndependently owned business, in devel-oping markets countries, that can market,service and supply Xerox products andservices appropriate for its territory.Xerox has no ownership interest in its distributorships.

DocumentCompilation of information structuredfor human comprehension; the containerfor information. Formats include but arenot limited to electronic files, e-mail,paper, images and Web content.

Document managementIntegrating an organization’s criticalbusiness processes with functions suchas document imaging, storage, archivingand retrieval to ensure that workersalways have ready access to digital andpaper document-based information.

Document outsourcingA managed service in which skilledXerox operators take over a company’sdocument production and managementneeds, freeing the company to concen-trate on its core business.

Document suppliesMaterials that go through a printer orcopier, such as paper, card stock, labelsor transparencies.

Enterprise printingManaging electronic information andhardcopy printing throughout acompany’s critical business systems,such as billing or procurement, orthroughout an entire environment.

Green World AllianceAn environmental initiative that encour-ages customers to return used cartridges,toner and other consumables to Xerox,so Xerox can extend the products’useful lives through remanufacturing.

Imaging servicesTaking hardcopy documents and scan-ning them to make electronic files, alsoknown as images, that can be moreeasily stored, manipulated, shared andretrieved from a digital repository.

Intellectual propertyUnique designs, inventions, ideas andknow-how that are protected by patents,copyrights, trademarks, trade secrets orlicense agreements. Intellectual propertyis a corporate asset.

47

X e r o x G l o s s a r y

Just-in-time printingAllows documents to be created only at the moment they are needed; forexample, coordinating the print run ofinstruction sheets with the productionschedule of the boxes that they need tobe dropped into.

Knowledge managementTransforming individual knowledge and experiences into knowledge andexperience that can be used by thecollective organization. Effective knowledge management has both asocial and technological dimension.

Laser printingProcess invented by Xerox that useslasers to create the image on a printdrum, or photoreceptor. Areas on thedrum hit by the laser attract toner. Theprinter transfers the toner from thedrum to the paper and fuses the tonerin place with heat.

Multifunction product (MFP)Imaging device that combines multiplefunctions, such as print, copy, scan andfax, all in one system. Basic MFPs copyand print, plus offer basic fax and scanfunctionality. Advanced MFPs copy,print and have advanced faxing andscanning capabilities, such as Internetfax and scan-to-file or scan-to-repository.

“New Business of Printing™”How Xerox describes the ongoingtransformation of today’s world of high-end printing, which increasingly usesdigital technologies to enable “just-in-time” production, personalization andintegration with Web capabilities.Xerox solutions address these new business opportunities.

On-demand printingAllows commercial printers and otherprint providers to quickly turn aroundshort, economical print runs of a precisenumber of documents.

One-to-One (1:1) solutionsSoftware and hardware that enableautomatic customizing or personalizingof individual documents in a massproduction run — an essential capa-bility in industries such as directmarketing and financial services.

PhotoreceptorPhysical device inside a marking systemon which the latent image is written bya laser or LED bar and then developedwith toner.

Production publishingThe production of documents on demandfrom electronic files or masters, such asbooks, manuals, data sheets and cata-logs. These documents may or may notcontain variable data.

Raster image processing (RIP)Core function provided by a printercontroller that turns print files intodirections so the imaging mechanismknows where to put dots on paper.

ResellerIndependent business that sells certaingroups of Xerox products, such asnetwork printers, to end-users. Resellersbuy Xerox printers and other vendors’products from distributors, not directlyfrom the manufacturer.

Single pass printingTechnology that deposits all four colorson the paper in one pass to create afull-color image, rather than the fourpasses required by traditional colorlaser printers.

“Smarter DocumentManagementSM” How Xerox describes its abilities andstrategies to use a range of documenttechnologies, software and consulting services to help customers reduce costs,streamline operations and simplify howthey work with information and documents.

Solid ink printingProcess that uses solid blocks of coloredresin-based ink, which are melted andsprayed in minuscule dots onto aturning offset drum, which then trans-fers the image to paper in a single pass.

SolutionAn integrated offering that typicallyincludes hardware, software and serv-ices, which solves a problem, improves a work process, or creates a market orcompetitive advantage.

TonerThe “dry ink” for laser printers andcopiers used to form xerographicimages. It is made either mechanically(pulverizing ingredients into tiny parti-cles) or chemically (growing ingredientsfrom the molecular level into tiny parti-cles of a precise shape and size).

Transaction printingThe production of large volumes ofdocuments from data and informationin databases, using systems that dynami-cally merge data with electronic forms,such as statements, invoices, checks andinsurance policies.

Wide-format printingThe production of large-format docu-ments, such as engineering and architec-tural drawings and posters, on specializedequipment with scanning and printingwidths that typically range between 19 and 60 inches.

WorkflowThe tools and procedures required ineach step of a business process. In thegraphic arts industry, workflow typicallyrefers to the pre-press process: filepreparation, color proofing, variabledata programming, etc.

XerographyTechnology invented by Chester Carlsonin 1938 that started the copying revolu-tion and gave birth to Xerox Corporation.An original image is transferred whenlight is projected onto an electricallycharged surface. The image attracts oppo-sitely charged toner particles, which arethen fused into place on the copy paper,reproducing the original image. The word“xerography” is derived from the Greekwords for “dry” and “writing.”

Xerox Lean Six SigmaA disciplined, data-driven method of reducing waste and variation inprocesses so they consistently deliverproducts and services at the qualitylevels, speeds and prices that customers value.

G E N E R A L C O N T A C T S

48

G e n e r a l C o n t a c t s

Corporate Media Contacts

Christa B. Carone Office: 203-968-4644Mobile: 585-737-7653 [email protected], Conn.

Kara ChoquetteOffice: 303-796-6420Mobile: [email protected], Colo.

Michael GoodwinOffice: 203-968-4663Mobile: [email protected], Conn.

Bill McKeeOffice: 585-423-4476Mobile: [email protected] Rochester, N.Y.

Consultant Relations Contact

Jan Daley-Austin Office: 310-333-2445 Mobile: 310-503-0999 [email protected] El Segundo, Calif.

Products/Services/SolutionsMedia Contacts

Full list available for key business divisions and geographies atwww.xerox.com/news.

Other Contacts

Sales Information on Any XeroxProduct:800-ASK-XEROX(800-275-9376)www.xerox.com

Investor/Shareholder Services:800-828-6396www.xerox.com/investor

Technical Assistance:www.xerox.com/eSupportCentre

Career Information:www.xerox.com/careers

Customer Environment,Health and Safety Support:800-828-6571www.xerox.com/environment

Directory Assistance:800-334-6200

Ethics Helpline:866-979-0001

Student Research Inquiries:[email protected]

For Fact Book Copies

Employees:For all orders (lots of 10), visit theMaterials and Publications Services site,available through the “Collaterals” linkon the Xerox WebBoard.Reference No.: 610P703620There is no charge for this book,but MAPS requires shipping andhandling fees.

General PublicCall 585-423-5733.

Xerox Newsroom

www.xerox.com/newsThe Newsroom contains Xerox newsreleases, high-resolution productphotography, executive biographies,awards, presentations, an online FactBook that is updated throughout theyear, and other resources designed forthe media and consultant communities.

Xerox Corporation is an equal opportunity employer and, as such, affirms in policy and practice to recruit,hire, train and promote, in all job classifications, without regard to race, color, religion, sex, age, nationalorigin, citizenship status, marital status, sexual orientation or gender identity. Furthermore, Xerox will notdiscriminate against persons who are veterans of the Vietnam era. Similarly, considering the need forreasonable accommodation to their limitation, Xerox will not discriminate against persons because of their handicap, including disabled veterans.

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