Xerox Elevates High Performance and Image Quality of iGen3 Digital Press; Releasing Value Based Pricing Guide

ROCHESTER, NY—May 22, 2008—The printing industry’s most productive high-speed digital color press has just taken its image quality, productivity and profitability to a whole new level.

Xerox Corporation (NYSE: XRX) today introduced the Automated Color Quality Suite Press Matching System, for its Xerox iGen3® 90 and 110 Digital Production Presses, offering high performance plus quality that matches offset printing. The new Automated Color Quality Suite enables faster press set up, quicker time to production, greater color stability and automated Pantone-color matching.

Routine color maintenance and adjustments associated with running a high-speed digital color press now can be done with greater automation. The Automated Color Quality Suite reduces operator tasks – such as calibration and color matching – traditionally done manually. With greater uptime and faster time to press, operators can expect to gain hours of extra productivity each week, which can translate into thousands of pages and additional revenue.

Xerox iGen3 presses with the new Automated Color Quality Suite capabilities will be on display in Xerox’s stand in Hall 8b at drupa, May 29 through June 11, in Düsseldorf, Germany.

“Eight years ago, the iGen3 press started a revolution in graphic communications, helping print providers take on new kinds of work that brought in new revenue streams,” said Quincy Allen, president, Xerox Production Systems Group. “With the introduction of the Automated Color Quality Suite, the best is getting even better. Print providers can now offer superior color to their customers, while achieving even more uptime, boosting their own profitability.”

The new capabilities are made possible by integrating an in-line spectrophotometer, a device that measures the color of sample prints, in the Xerox iGen3’s paper path. Breakthrough improvements in profile creation technology yield accurate saturated color, even and balanced neutrals, outstanding shadow detail and smooth highlight sweeps. Operators can accept a file designed for offset printing, send it to an iGen3 press and achieve the desired output with ease. By limiting human subjectivity through automation, accurate and consistent color matching is achieved across multiple presses.

Other components of the Automated Color Quality Suite include:

• Advanced Profiling – Enables greater color consistency and realism in familiar objects like faces and skies and will automatically adjust colors to closely match offset printing standards in minutes. It can accurately match the popular GRACoL (General Requirements for Applications in Commercial Offset Lithography) standard, and takes advantage of ICC (International Color Consortium) DeviceLink profiling for higher performance. A color matching industry benchmark, GRACoL offers a new source profile option for the most demanding jobs. The ICC DeviceLink Profiling allows for faster processing and improved color rendering.

• Automated Color Check – Keeps the press production-ready by verifying color quality through a quick check of the system to ensure colors are being reproduced correctly and eliminating unnecessary maintenance.

• Automated Calibration – Eliminates the need for manual calibration and returns the print engine to a standard expected state – reducing inconsistencies in color caused by temperature fluctuations, humidity changes and day-to-day use.

• Automated Spot Color Calibration – Ensures accuracy of Pantone-licensed colors across print engines and reduces the need for manual adjustments of colors by automatically reading color values of printed patches, comparing them to reference values and modifying the CMYK formula for each spot color.

With these elevated high performance and image-quality enhancements, the industry-leading iGen3 press is a perfect match for printing profitable full-color applications that range from personalized direct mail and catalogues to marketing collaterals and photo books.

Pricing and availability

New and existing Xerox iGen3 press users operating Xerox FreeFlow® Print Server 6.0 in all geographies can purchase the Automated Color Quality Suite Press Matching System immediately. It has a U.S. list price of $25,000.

New Xerox ProfitAccelerator Tool Gives Print Providers a Competitive Edge in Digital Printing

On-site seminars at drupa give tips and best practices to grow a digital business, create a profitable future and more

Building a successful digital print operation takes more than the latest equipment. Business development plays a critical role and today Xerox Corporation introduced a new pricing tool to help print providers maximize profits.

Xerox’s Value Based Pricing Guide, part of its industry-leading ProfitAccelerator® Digital Business Resources Collection, helps print shops address the challenge of developing “value-based” versus “cost-plus” pricing. This enables the capture of incremental revenue from non-print services being provided as part of applications such as direct-mail campaigns. Xerox’s financial resource kit includes information and worksheets to help print providers adapt their business model from a cost-per-job to a services-based model.

“Xerox was the first vendor to offer digital business development support and its offerings, like the new Value Based Pricing Guide, are second to none in the graphic communications industry,” said Andy Tribute, managing partner of Attributes Associates, an internationally oriented consulting company specializing in marketing and technology issues for the printing, publishing and media markets. “As a result, Xerox’s customers around the world receive an unparalleled level of support as they start and run their businesses and look for new ways to drive profits.”

Xerox’s stand at drupa will also include five conversation areas highlighting key business development tools and services, and business development seminars featuring presentations by industry experts on how to grow and manage a digital business. Planned seminars include:

· “Developing a Profitable Digital Print Business” – Peter Muir, Bizucate, Inc.

· “Novel Ideas: Your Digital Book Publishing Opportunity” – John Conley, Xerox

· “Digital Photos: How to Break into the Digital Photo Products Market and Take Advantage of a $2B Opportunity” – Chris Jordan, Jordan & Jordan

· “Offset and Digital: A Marriage Made for Profit” – Xerox executive and customer

· “Hit the Sweet Spot: Target the Ad Agency and Design Services Market” – Andreas Weber, DigitaldruckForum

· “From Cost Center to Profit Center: The TransPromo Opportunity” – J. Edwards, Nexdocs (DSI)

· “Innovation + Application = Profit” – Reiner Eschbach, Xerox Research Fellow and Stora Enso executive

· “Print Automation: The Key to Profitability” – Chris Jordan, Jordan & Jordan

Availability
The Value Based Pricing Guide is available immediately worldwide through Xerox sales representatives. For more information on ProfitAccelerator Digital Business Resources visit www.xerox.com/driveprofit

Environmental Protection Agency Recognizes Xerox for Decades of Environmental Stewardship

NORWALK, CT—May 21, 2008 – Xerox Corporation (NYSE: XRX) today became the first technology company to be named a Performance Track Corporate Leader by the U.S. Environmental Protection Agency. Xerox is one of only five companies named an EPA Corporate Leader.

The Corporate Leader appointment acknowledges Xerox for decades of environmental achievement, a sustained compliance record and excellent facilities management in all five of its U.S. manufacturing facilities, and a superior level of commitment to reducing its environmental footprint. Xerox was also awarded the EPA’s Climate Protection Award for significantly reducing energy use and greenhouse gas emissions.

“Xerox is a true role model for the best in corporate sustainability practices and represents what our Corporate Leaders program is all about -- leadership, accountability and action,” said Dan Fiorino, director of the Performance Track Program, U.S. Environmental Protection Agency. “We are looking for the select few who influence and improve our future through innovation and a continued commitment to the environment and sustainability.”

The EPA created the Performance Track Corporate Leader distinction to recognize companies that exhibit policies and behavior associated with environmental excellence in the management of facilities and throughout the company’s entire value chain including suppliers and/or customers.

“Long before it was popular to do so, Xerox ranked sustainability high on its list of priorities and led the industry in innovative ways to reduce waste and conserve energy. Our experience has shown us that when we act in ways that benefit the environment, we make sound business decisions that not only benefit Xerox, but also our customers and shareholders,” said Wim Appelo, president, Xerox Strategic Services.

To continue its commitment to environmental sustainability and the Corporate Leaders distinction, Xerox has pledged to further minimize its environmental footprint by reducing greenhouse gas emissions by 25 percent by 2012 from a 2002 baseline; reducing solid waste and ultimately achieving waste-free manufacturing facilities; evaluating all strategic production suppliers according to the Electronic Industry Citizenship Coalition (EICC) standards and helping suppliers with less than optimal performance reach higher compliance levels; and greening the paper supply chain by strengthening environmental requirements for suppliers that provide paper to Xerox for resale.

Climate Protection Award

The EPA also awarded Xerox a 2008 Climate Protection Award for its achievements in reducing energy use and greenhouse gas emissions. Xerox reduced its total global greenhouse gas emissions by 18 percent from 2002 to 2006, surpassing several years early its original goal of a 10 percent reduction by 2012.

“Efforts to help fight climate change will benefit the planet for generations to come. We commend Xerox for its ongoing efforts to protect our environment,” said Bob Meyers, principal deputy assistant administrator, EPA Office of Air and Radiation.

Xerox achieved its goal ahead of schedule by developing a clear framework for greenhouse gas management, involving the entire company by establishing clear roles and accountability, engaging the full value chain, integrating climate protection into core business strategies and practices, allocating appropriate funding, and rewarding success.

Xerox has a long-standing partnership with the U.S. EPA. In the early 1990s, Xerox was a charter partner for the international ENERGY STAR program and has invested in product designs and technologies that conserve energy and reduce greenhouse gas emissions. Xerox also participates in the EPA Climate Leaders, Waste Wise and the National Environmental Performance Track Programs.

More information on Xerox’s goals and accomplishments in environmental stewardship and sustainability can be found in the company’s Global Citizenship Report available at www.xerox.com/environment

About Xerox Corporation
Xerox Corporation is the world’s leading document management technology and services enterprise. A $17 billion company, Xerox provides the industry’s broadest portfolio of color and black-and-white document processing systems and related supplies, as well as document management consulting and outsourcing services. Over the past 40 years, Xerox has demonstrated leadership in sustainability and citizenship in its products and its facilities and by investing in innovation that delivers measurable benefits to the environment. It is a member of the California Climate Action Registry as well as the United States Climate Action Partnership (USCAP). It was named to the Dow Jones Sustainability North America Index in recognition of its economic, environmental and social performance, and it received the National Medal of Technology, the highest technology award in the United States, for its innovations.