New Xerox Digital Copier-Printer Bridges Office and Light Production Markets.

ROCHESTER, N.Y. -- In its first product launch of the new year, Xerox Corporation (NYSE: XRX) today announced the Xerox 4590 digital copier-printer, which provides unmatched scanning speed and image quality for large networked offices and light production environments such as in-house and quick-print shops.

The Xerox 4590 leads the market with image quality of 2400 x 2400 dots per inch resolution and scanning speeds of up to 100 double-sided pages per minute. It prints and copies up to 90 pages-per-minute. Workers can quickly and easily produce large, complex documents including brochures and booklets as well as everyday business documents like reports and training materials. The system is engineered to produce from 75,000 to 175,000 pages per month.

Based on the same design as the Xerox 4110 digital copier-printer, the Xerox 4590 reflects Xerox's use of common technology platforms that can be extended across multiple products. Installs of Xerox production monochrome systems grew 21 percent in the third quarter of 2005, driven largely by the success of the Xerox 4110 system. In addition, data from IDC, a leading market research firm, indicates that the Xerox 4110 increased the company's U.S. market share within the 91 page-per-minute and faster monochrome copier based-MFP market to 33 percent in the third quarter of 2005, up 11 percentage points from the same period in 2004.

"The productivity features and crisp image quality make the Xerox 4590 a compelling offering for customers," said Keith Kmetz, director, Hardcopy Peripherals Solutions and Services programs at IDC. "Similar to the 4110's strong position in the light production market, this new system has the potential to increase Xerox's share in the high-volume office segment."

"The Xerox 4590 is built on proven technology that will continue to drive growth for Xerox," said Tim Williams, president, Xerox Office Group. "We are kicking off 2006 with a system that delivers a superior customer experience and beats the competition in image quality, speed and finishing."

The Xerox 4590 is designed to help customers spend less time at the system waiting for jobs to be completed and more time getting work done. These benefits include:

--  Productivity. While competitive products slow down when
        scanning double-sided documents, the Xerox 4590 copier-printer
        maintains scanning speeds up to 100 ppm for both single and
        double-sided documents. With this new system and the Xerox
        4110 digital copier-printer introduced last year, Xerox
        delivers the fastest scanning speeds in the office printing
        and light production markets.

        The Xerox 4590 has a 250-sheet automatic document handler that
        holds 150 sheets more than competing devices, and it has up to
        eight paper trays for up to 8,225 sheets of paper. With this
        superior paper capacity, the system can handle large jobs
        easily with minimal intervention. Users can also ensure jobs
        are completed quickly and without interruptions by replacing
        toner cartridges while a job is running.

    --  Professionally finished documents. This system provides 2400 x
        2400 dots per inch resolution and 256 gray levels, delivering
        sharp images, fine lines and text. Xerox's patented EA toner,
        which requires less energy to manufacture and generates less
        waste, ensures images remain consistent during long runs.

        Customers also can create complex technical documents or
        creative collaterals, such as menus, catalogs or user manuals.
        The Xerox 4590 supports an unsurpassed range of media, up to
        13" x 19.2" and 140 lb./253 gsm. It includes a post-process
        interposer -- which automatically inserts color pages or
        covers into documents -- and finishing options such as
        100-sheet stapling, hole punching, and tri-folding.

    --  Easier workflow. The Xerox 4590 makes it easy to convert
        hardcopy documents to digital files. It can scan up to 10 jobs
        while simultaneously printing, preventing long waits in busy
        print shops and offices. People can easily capture, store and
        share documents by scanning them on the Xerox 4590 and sending
        them directly to e-mail, a network file-server or to the
        system's hard drive for printing or copying at a later time.
        The system's 500 electronic mailboxes also help people save
        time since documents can be scanned once, stored on the system
        and reprinted frequently by pressing a button.

The Xerox 4590 includes Xerox CentreWare Web software, which helps IT professionals proactively and easily manage print devices across an entire enterprise, giving IT the information and control needed to anticipate issues and reduce downtime.

The system also comes in a copy-only version. List price for the Xerox 4590 digital copier starts at $52,800. The Xerox 4590 copier-printer starts at $59,100. Order-taking starts today in North America through the Xerox direct sales force and authorized sales agents.

Customer Contacts:

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

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