Accent Color Sciences and Xerox Reach Settlement Agreement.

Business Editors

EAST HARTFORD, Conn.--(BUSINESS WIRE)--March 23, 2001

Accent Color Sciences, Inc. (OTC Bulletin Board: ACLR), a leading provider of high-speed spot color printing systems and ink jet integration services, today announced that it has reached a settlement with Xerox Corporation terminating Accent Color's agreements with Groupe Set International, a subsidiary of Xerox in Europe.

Under the terms of the settlement, Accent Color received a cash payment from Xerox in return for the termination and other considerations.

Charles Buchheit, president and chief executive officer of Accent Color Sciences, commented: "We are disappointed Xerox has chosen not to continue its program with our product but understand its current business challenges, especially as we continue to refocus our business plan. Xerox's earlier indications, such as its reluctance to place additional orders for 2001, caused us to accelerate our efforts in industrial printing. In addition to our previous transactional printing business, we have also initiated business activities in package printing, engineering services, and component sales. As we speak with companies in various industrial markets, we find increasing need for our technical expertise and we are focusing our attention there."

Mr. Buchheit continued: "The industrial printing opportunity has been sized by consultants as being substantially larger than the conventional transactional printing market. The opportunity is also very diverse. In fact, we are currently reviewing programs that would require us to jet not only hot melt ink but also solvents, powdered metals, oils, and even glue. This opportunity is available for us due to the years of experience Accent Color has in the electrical and mechanical integration of ink jet technology."

Accent Color Sciences, Inc. designs, manufactures and sells innovative, high-speed ink jet printing systems, and provides ink jet integration and manufacturing services specializing in systems for industrial use. Its products include the Truecolor(TM) System--for the production printing and production publishing segments of the printing industry. Truecolor(TM) Systems, when integrated with high-speed, digital, black-on-white printers, create a system that prints or highlights critical information in multiple colors for large-volume applications. Such applications include billing statements, account statements, invoices, check in-filling, legal notices, brochures, financial reports and short-run, on-demand publications.

"Safe Harbor" Statement Under the Private Securities Litigation Reform Act of 1995: The statements contained in this news release that are forward-looking, including any redirection of the company's business, are based on current expectations that are subject to a number of uncertainties and risks, and actual results may differ materially. Those risks and uncertainties include, but are not limited to: (i) the need to secure strategic relationships and/or additional capital to pursue industrial printing opportunities while supporting current programs; (ii) the need to reach understandings with the Company's secured lender (IBM) concerning $ 2.7 million of indebtedness due June 30, 2001; (iii) the level of customer acceptance of the Company's products and the dependence of the company on additional orders from current customers; (iv) the rights of customers of the Company to modify or cancel orders under the terms of related product purchase agreements, as amended; (v) problems faced by the company's principal customers in their own businesses which may impact their ability or willingness to support their programs with the Company; (vi) the dependence of the Company on third-party suppliers for certain key technology elements, and (vii) the potential fluctuations in the Company's quarterly results of operations. Further information on factors that could cause actual results to differ from those anticipated is detailed in the Company's annual report on Form 10-K for 1999, quarterly reports on Form 10-Q, and other filings with the Securities and Exchange Commission.

NOTE: Press releases and other information are available on Accent Color Sciences' World Wide Web site at http://www.accentcolor.com.