Berman DeValerio, Johnson & Perkinson, and Milberg LLP Announce the Proposed Settlement of a Securities Class Action Lawsuit against Xerox Corporation, Certain of Its Officers or Directors, and KPMG LLP, for $750 Million in Cash.

NEW YORK -- In the United States District Court for the District of Connecticut, in Carlson v. Xerox Corporation, et al., Case No. 3:00-CV-1621 (AWT), a summary notice has been issued as follows:

Summary Notice of Pendency of Class Action and Proposed Settlement and Settlement Fairness Hearing

If you purchased Xerox Corporation common stock and/or bonds during the period from February 17, 1998 through June 27, 2002, inclusive, and your transactions in Xerox common stock and/or bonds during this period resulted in a loss, then you could get a payment from a class action settlement.

YOU ARE HEREBY NOTIFIED, pursuant to Rule 23 of the Federal Rules of Civil Procedure and an Order of the Court, that the above-captioned action has been certified as a class action and that a settlement for $750 million ($670 million contributed by Xerox Corporation and $80 million contributed by KPMG LLP) has been proposed. A hearing will be held before the Honorable Alvin W. Thompson in the United States Courthouse, 450 Main Street, Hartford, CT 06103, at 3:00 p.m., on October 7, 2008 to determine whether the proposed settlement should be approved by the Court as fair, reasonable, and adequate, and to consider the application of Plaintiffs' Counsel for attorneys' fees and reimbursement of expenses.

IF YOU ARE A MEMBER OF THE CLASS DESCRIBED ABOVE, YOUR RIGHTS WILL BE AFFECTED AND YOU MAY BE ENTITLED TO SHARE IN THE SETTLEMENT FUND. If you have not yet received the full printed Notice of Pendency of Class Action and Proposed Settlement, Motion for Attorneys' Fees and Settlement Fairness Hearing and a Proof of Claim form, you may obtain copies of these documents by contacting the Claims Administrator:

Carlson v. Xerox Corporation Securities Litigation
c/o Gilardi & Co. LLC, Claims Administrator
P.O. Box 808003
Petaluma, CA 94975-8003
Telephone [phone]
www.gilardi.com/xeroxsettlement

Inquiries, other than requests for the forms of Notice and Proof of Claim, may be made to Plaintiffs' Co-Lead Counsel:

Glen DeValerio, Esq.
Berman DeValerio Pease Tabacco Burt & Pucillo
One Liberty Square
Boston, MA 02109
Telephone: [phone]

Dennis J. Johnson, Esq.
Johnson & Perkinson
1690 Williston Road
P.O. Box 2305
South Burlington, VT 05403
Telephone: [phone]

Brad N. Friedman, Esq.
Milberg LLP
One Pennsylvania Plaza
New York, NY 10119-0165
Telephone: [phone]

To participate in the Settlement, you must submit a Proof of Claim no later than October 15, 2008. If you are a Class Member and do not exclude yourself from the Class, you will be bound by the Order and Final Judgment of the Court. To exclude yourself from the Class, you must submit a request for exclusion postmarked no later than July 1, 2008. Any objections to the proposed Settlement, Plan of Allocation or application for attorneys' fees and reimbursement of litigation expenses must be filed by July 1, 2008. If you are a Class Member and do not submit a proper Proof of Claim, you will not share in the Settlement but you nevertheless will be bound by the Order and Final Judgment of the Court.

Further information may be obtained by contacting the Claims Administrator.

By Order of the United States District Court for the District of Connecticut