New Xerox Multifunction System Family Supercharges Office Productivity, Processes Jobs Up to Three Times Faster.

Business Editors

TECHXNY/PC EXPO 2002

Xerox Document Centre 500 Series Offers Faster Output,

Expanded Finishing Options in a Smaller Footprint at Economical

Prices

A new generation of digital multifunction systems that's more affordable, powerful and features buy-only-what-you-need options was unveiled today by Xerox Corporation (NYSE: XRX) at PC Expo.

Designed for small and mid-size workgroups, the network products can boost productivity with job processing speeds that are up to three times faster than competitive products.

With prices starting as low as $8,555, the Document Centre 500 Series digital multifunction systems will offer black-and-white print speeds of 35, 45 and 55 pages per minute and expanded network and output options.

Tests by Buyers Laboratory Inc., an independent organization that evaluates office products, show the Document Centre 500 Series is up to three times faster than similar competitive products in network processing speed when printing multiple office jobs such as e-mail with attachments, text documents or presentations.

"Testing(a) has shown that of all systems compared in the BLI print productivity evaluation, the Xerox Document Centre products proved to be the most productive and efficient," said Tony Polifrone, president, Buyers Laboratory Inc.

In early customer engagement, the systems have been well received. OfficeMax, Inc. will install 3,200 of the affordable Document Centre 500 Series products in its in-store, print-for-pay CopyMax locations as part of a four-year, $109 million agreement announced in April. The agreement enabled OfficeMax to replace an existing agreement with better equipment at a lower price.

Like all Xerox Document Centre systems, the 500 Series is engineered to perform all steps of the printing process at once - receiving, processing and printing one job after another without pausing - which is one reason it is more productive than competitive products. A person who walks up to make a quick copy, for example, doesn't have to wait for a printing, faxing or scanning job to conclude before entering a new job. Compared with previous similarly rated Xerox equipment, it RIPs, processes and prints jobs 30 percent faster.

The 500 Series provides optional features that enable buyers to customize the system for their own office requirements, as well as standard features to cut office costs and boost productivity.

-- An Internet fax option enables users to send hardcopy documents over the Internet, avoiding telephone costs.

-- IEEE 802.11b wireless network connectivity via compatible third-party adapters enables ease of installation and mobility where traditional network cabling is impractical.

-- An image overwrite security option helps system administrators protect the confidentiality of their office documents by erasing print and scan jobs from the system's hard drive.

-- Expanded output and finishing options include an offsetting

catch tray and a 2,000-sheet finisher with single or dual

multi-position stapling and hole punching.

-- Modular design results in a footprint that is as much as 40

percent smaller than older models, saving valuable office

floor space.

-- Customer replaceable modules enable customers to replace

equipment parts such as imaging and fuser cartridges,

eliminating downtime associated with service calls.

In addition, these products offer the crispest document quality available to office workgroups with true 600 x 600 dots-per-inch resolution and up to 1800 dpi emulated print resolution. For system administrators concerned with compatibility, Document Centre drivers are Microsoft-certified for all the latest Windows environments.

Document Centre 500 Series systems will be offered in multiple configurations. The base configuration includes two 550-sheet trays and a 100-sheet bypass tray. The high-capacity feeder configuration adds 2,000-sheet and 1,600-sheet trays.

Suggested pricing starts at $8,555 for a 35-ppm basic digital copier to $20,445 for a 55-ppm network multifunction system. All models will be available beginning July 30 in the United States, Canada and Europe. Sales, service and leasing are offered through the Xerox direct sales force, authorized sales agents, dealers and concessionaires.

Customer contact: For more information about the Document Centre 500 Series, visit www.xerox.com.

NOTE TO EDITORS: Document Centre 500 Series systems will be demonstrated at Xerox Booth 2204, June 25-27 at PC Expo, Jacob K. Javits Convention Center, New York.

(a) Print productivity was conducted by Buyers Laboratory Inc., with each product operating in default mode and resolution set at 600 dpi. Multiple jobs from a BLI test suite were sent in series to each device, with output consisting of a mix of single and multiple stapled sets with a banner page for each job in the test suite. The order in which jobs were sent was randomly selected.

For more information about Xerox and product photography, visit www.xerox.com/news. XEROX(R), The Document Company(R), and the digital X(R) are trademarks of XEROX CORPORATION.