'Innovation Powerhouse': New Patents Buttress Xerox Technology Leadership; Two Researchers Hit 100-Patent Mark; Company Reports Earning Nearly 630 Patents in 2003.

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Business Editors/High-Tech Writers

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STAMFORD, Conn.--(BUSINESS WIRE)--Jan. 6, 2004

Two Xerox Corporation scientists, Raj Patel and Robert Yu, were awarded their 100th U.S. patents last month. That rare accomplishment capped a year in which Xerox (NYSE: XRX) and its subsidiaries earned 628 U.S. utility patents on new materials, new technologies and new ways of processing documents, bringing its total U.S. patents earned to nearly 16,000 - a sum matched by only a handful of the nation's most creative companies.

Before now, only nine scientists in Xerox's 98-year history had reached the 100-patent milestone.

Yu, a 22-year Xerox veteran and a physical polymer chemist in the Supplies Delivery Unit, has specialized in perfecting a critical printer part called a photoreceptor. His work is at the heart of more than 50 different models of Xerox monochrome and color copiers, printers, and printing and publishing systems.

Yu's 100th patent, No. 6,660,441, was awarded in mid-December and describes a method for eliminating curl on flexible photoreceptor belts, resulting in higher productivity, longer belt life and improved image quality - a benefit to both customers and the company.

The following week Xerox chemist Raj Patel was awarded his 100th patent, No. 6,664,017. Patel, a 25-year veteran of the Xerox Research Centre of Canada, is one of the company's top experts in toner technology.

His most recent patent expands Xerox's document security know-how. The invention covers two new ways to apply glossy white toner marks - either visible to the eye at a certain angle or visible only under ultraviolet light - on documents for security or authentication purposes. Key potential uses for the invention include sports tickets, manufacturers' coupons and currency.

Both patents were among the 628 total patents issued to Xerox - including to its PARC subsidiary - by the U.S. Patent and Trademark Office in 2003*. In addition, Xerox's joint-venture partner in Japan, Fuji Xerox, received about 170, raising the overall patent total for the Xerox Group to nearly 800 patents.

"Innovation has always been a core strength for Xerox, and our patent achievements demonstrate the way Xerox people are pushing the frontiers of science, engineering and technology," said Herve Gallaire, chief technology officer and president, Xerox Innovation Group. "Our scientists have created an innovation powerhouse, sustaining our technological leadership and fueling the growth of Xerox and its customers."

Xerox provides unmatched expertise in document systems, services and solutions. Its research is aligned to help customers increase the intelligence, quality and productivity of documents and work processes, in the workplaces and commercial-printing environments of today and in the future.

In addition to Patel's and Yu's patents, other new inventions from Xerox researchers cover software architecture for Internet document delivery, plastic materials that conduct electricity, smart systems for self-diagnosing and self-repairing printers and copiers, and novel techniques to improve document image quality.

-- U.S. Patent No. 6,573,910 describes a framework for providing

print services on demand over the Internet. With digital

printing - a critical Xerox market - jobs are increasingly

submitted over the network, and the patented system will give

its print shop customers an advantaged method for bidding on

and executing jobs.

-- No. 6,621,099 covers a new class of plastic materials with

electrical properties that can be used as a conductive ink for

printing electrical circuits onto surfaces that flex and bend.

In the future the materials could be used for inexpensive,

flexible, large-format printed electronics to drive flat

displays, such as televisions and monitors, and electronic

paper.

-- No. 6,519,552 is among a group of patents that point to ways

next-generation machines will diagnose problems and repair

themselves. It covers intelligent self-diagnosis capabilities

that will allow machines to warn people before they fail, and

even correct themselves.

-- No. 6,525,751 covers a sophisticated motor control method that

allows multiple laser beams to synchronously write image data

on a belt moving at high speed. It makes possible the extreme

spatial precision required for printing color images of the

highest quality in Xerox's production printers.

-- No. 6,646,762 describes a breakthrough color printing process

that improves the way input colors are adjusted to match the

capabilities of the output device. This technique accounts for

the way people see, and the final color rendition appears to

have more detail, sharpness and color fidelity than with

previous techniques.

With close to 16,000 U.S. patents granted since the company's founding, Xerox ranks behind only a few elite U.S. research organizations such as IBM, General Electric and ATT/Lucent as the country's most prolific generator of inventions. Among Xerox's other intellectual property highlights from 2003:

-- Xerox received the IEEE's 2003 Corporate Innovation

Recognition award for its pioneering work that created the

DocuTech production publishing line and resulted in today's

$30 billion print-on-demand industry. The IEEE, the world's

largest technical professional society, recognized DocuTech as

a breakthrough technology based on an astonishing array of

innovations - a legacy that Xerox continues to lead and build

on today.

-- To capitalize even further on its innovation, Xerox appointed

IPVALUE Management as its worldwide agent for the

commercialization of intellectual property, including patent

licensing, technology licensing and technology transfer to

other companies.

Xerox Corporation operates research and technology centers in the United States, Canada and Europe that conduct work in color science, computing, digital imaging, work practices, electromechanical systems, novel materials and other disciplines connected to Xerox's expertise in printing and document management. The company consistently builds its inventions into business by embedding them in superior Xerox products and solutions, using them as the foundation of new businesses, or licensing or selling them to other entities. Xerox research is strategically coordinated with that of its joint-venture partner, Fuji Xerox Co. Ltd. of Japan.

Customer Contact:

For more information about Xerox research, visit www.xerox.com/innovation.

NOTE TO EDITORS: For fact sheets and photos of Robert Yu and Raj Patel, as well as more information about Xerox, visit www.xerox.com/news. XEROX(R), The Document Company(R) and the digital X(R) are trademarks of XEROX CORPORATION.

* Patent totals are preliminary in anticipation of the official U.S. Patent and Trademark Office reports and represent utility patents issued to Xerox Corporation or its wholly owned subsidiaries during the 2003 calendar year.

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