'InformationWeek' Magazine Ranks Xerox among Top 10 Information Technology Innovators.

STAMFORD, Conn. -- Xerox Corporation (NYSE: XRX) has been named to the Top 10 of CMP Media LLC's InformationWeek 500, a listing of the nation's most innovative users of information technology.

The company ranked No. 9 among the 500 companies recognized for IT innovation in 2004, up from No. 220 last year. Xerox also was recognized as No. 1 in the "consulting and business services" industry category.

According to InformationWeek, companies named to the list "demonstrate a pattern of technological and organizational innovation," and this year the top 100 companies "are distinguished by crisp and efficient strategies that cut costs and optimize productivity. These businesses have raised the bar on corporate governance and made a science out of measuring return on investment and the value of business-technology projects."

At Xerox, for example, project teams are using Lean Six Sigma tools to identify, reengineer and further strengthen the key business processes and technologies that underpin the way Xerox and its customers do business, from proposals, to orders, to installs and services, to billing, to post-sale care and service. Another Xerox Information Management team used Lean Six Sigma - a disciplined, data-driven methodology to make processes better and leaner - to develop a new statistical algorithm to improve software delivery and testing and to cut software development costs.

"This industry ranking validates the success of our continued efforts to drive Xerox's business transformation through smart process and technology improvements - and it attests to the dedication, knowledge and ingenuity of Xerox people," said Patricia Cusick, Xerox chief information officer.

In its 16th year, the InformationWeek 500 study examines business practices across companies' core areas of technology operations, including management priorities, investment approaches and IT strategies. Xerox has made the list 14 times.

The ranking is among several that Xerox has recently earned regarding its work practices and culture:

--The Human Rights Campaign once again gave Xerox a 100 percent score on its "Corporate Equality Index," which assesses issues important to gay, lesbian, bisexual and transgendered stakeholders.

--LATINA Style magazine named Xerox to its seventh annual "LATINA Style 50," a ranking based on companies' policies and practices for Hispanic women.

--Exame magazine and the Great Place To Work Institute named Xerox do Brazil one of the best companies to work for in Brazil. This is the seventh year the company has made the list of the top 150 companies.

Customer Contact:

For more information about the InformationWeek 500, visit www.informationweek.com.

Media Contacts:

Bill McKee, Xerox Corporation, 585-423-4476, [e-mail]

Kara Choquette, Xerox Corporation, 303-796-6420, [e-mail]

NOTE TO EDITORS: For more information on Xerox and company award archives, visit www.xerox.com/news. XEROX(R) is a trademark of XEROX CORPORATION.