Office Depot Partnership Broadens Xerox Presence in the HP Compatible Printer Cartridge Market; Xerox HP-Compatible Toner Cartridges Offer Outstanding Value for Laser Printer Users.

ROCHESTER, N.Y.--(BUSINESS WIRE)--Dec. 3, 1999--

Xerox Corporation (NYSE: XRX) today announced an agreement with Office Depot Inc., the world's largest seller of office products, that greatly expands the distribution and availability of Xerox-branded compatible toner cartridges designed for use in Hewlett-Packard (HP) and other laser printers.

Office Depot is now offering five HP-compatible printer toner cartridges from Xerox in its 780 office superstores across the United States. These cartridges will be sold in "It's Compatible" packaging that clearly displays HP and Canon alphanumeric designations for convenient comparison shopping.

The cartridges from Xerox are compatible with many popular desktop laser printers on the market today, including Hewlett-Packard, Canon and Apple, but are priced as much as 15 percent less than those competitors' cartridges. In addition, the performance of the Xerox HP compatible cartridges is 100 percent guaranteed and backed by free Team Xerox support.

"We truly believe that these HP compatible replacement cartridges provide the quality and value that our customers have come to expect from Office Depot and Xerox," said Shawn McGhee, president of Office Depot's merchandising group. "It's an innovative way of providing our customers with affordable and dependable solutions for their laser printer needs from a brand they can trust."

A recent independent research study by Torrey Pines Research concluded that the "Xerox replacement toner cartridges exceed the yield rating stated by Xerox, and provide consistent print quality." The full report is available on the Xerox Web site, www.xerox.com, under the Supplies section.

Xerox "It's Compatible" printer toner cartridges will be available to customers at Office Depot stores for use in the most popular Hewlett-Packard Laser Printers, including the following: LaserJet 4L/4P, LaserJet 5P/6P, LaserJet IIP/IIIP, LaserJet II/III and LaserJet4/5.

"Through our partnerships with retailers such as Office Depot, Xerox is uniquely positioned to deliver an affordable and trusted alternative for customers who use laser printers," said Rosemary Thomas, vice president and general manager, Xerox North American Retail Operations.

For more information on Xerox products, services and programs for the small office/home office, visit the Xerox World Wide Web site at http://www.xerox.com or call 1-800-TEAM-XRX (832-6979).

NOTE TO EDITORS: Xerox, The Document Company, the digital X and "It's Compatible" are trademarks of Xerox Corporation. All other brands and product names are trademarks or registered trademarks of their respective companies.