Digital Color Page Volume Hits New High with Xerox iGen3 Press; Customers Say Color Business ''is Exploding''.

CHICAGO -- Graphic communications firms are taking digital color page volumes to unprecedented levels as Xerox Corporation (NYSE:XRX) expands profit-boosting support programs and introduces new capabilities across its high-end color line.

Today, more than 8 billion pages are being produced annually on Xerox digital production color systems worldwide, while customers using the flagship Xerox iGen3(R) Digital Production Press are set to break the 3 billion page mark this month. More than 70 iGen3 presses are printing 1 million pages or more in a single month, and more than 60 customers have multiple iGen3 presses.

The latest figures from IDC, a global provider of market intelligence, say Xerox is the leader in the 60+ pages per minute color space in the United States, with 68 percent market share in the first half of 2005. InfoTrends/CAP Ventures, an independent industry analyst firm, has forecast that the retail value of digital color print-on-demand in the United States will grow from $24.9 billion in 2004 to $50.6 billion in 2009. This represents a 15 percent compound annual growth rate.

One year after installing its first Xerox iGen3, DMI Inc. of Woburn, Mass., has now installed two more Xerox iGen3 110 presses to meet growing customer demand for personalized variable-data printing and on-demand color jobs such as brochures, marketing collaterals and direct-mail campaigns. The one-to-one marketing services provider is printing more than 1 million pages a month on its first iGen3 press, and it expects to average more than 500,000 pages a month on each of the additional digital presses.

"Our business is exploding. We are profiting from digital color, and the Xerox iGen3 presses are allowing us to continue to move into more revenue-generating full-color, one-to-one and cross-media marketing campaigns that are achieving significant increases in ROI for our customers," said Mark Ellis, vice president, sales and marketing, DMI Inc. "We are already looking forward to our fourth iGen3 press."

Toppan Printing Company America Inc., a wholly-owned subsidiary of Toppan Printing Co. Ltd., the second largest printing company in the world, operates two Xerox iGen3 presses at its sprawling plant in Somerset, N.J. According to Gavin Jordan-Smith, director of digital communications, the iGen3 presses have transformed the company's business and led to significant growth, customer retention, new customer generation and profit.

"Within six months of adding digital print services to complement our traditional offset work, we secured 85 new clients and generated a 20 percent increase in profits," said Jordan-Smith.

Quincy Allen, president of the Xerox Production Systems Group, points to the proven market performance of the iGen3 press, coupled with customer support programs, as key drivers of steadily increasing digital color page volumes.

"The combination of image quality, speed, reliability and paper-handling capabilities of the iGen3 press make it unsurpassed in the marketplace," said Allen. "But our focus goes beyond the technology to include intensive volume-building support and marketing programs designed to help ensure a superior - and profitable - customer experience. At the same time, we continue to enhance the capabilities of our color line."

Customer business development resources in Xerox's ProfitAccelerator(TM) portfolio - the industry's most comprehensive collection of knowledge, training and support programs - ensure that Xerox customers' digital investment will be successful. The portfolio includes sales and marketing, creative and design, application development and financial tools.

These successes and more are being showcased at Print 05 in Chicago this week, the printing industry's largest trade show this year.

Xerox boasts the industry's broadest and most successful digital color production printing line, with products ranging in speed from 40 to 110 pages per minute. Products include the DocuColor 240/250 Digital Printer/Copier; DocuColor 5252, 6060, 7000 and 8000 Digital Presses; and the Xerox iGen3 110 Digital Production Press.

Customer Contacts:

For more information about Xerox production color systems, software and services, visit www.xerox.com/products or call 800-ASK-XEROX.

For more information about Xerox at Print 05, visit www.xerox.com/print05.

NOTE TO EDITORS: Visit Xerox at Booth No. 1228, Sept. 9-15 at Print 05, McCormick Place, Chicago. For more information on Xerox, details on its Print 05 announcements, product photography, and to receive its RSS news feed visit www.xerox.com/productionnews or www.xerox.com/news. XEROX(R), iGen3(R) and ProfitAccelerator(TM) are trademarks of XEROX CORPORATION.