Waste-Free Strategies Benefit Xerox, Its Customers and the Environment.

Business Editors

ROCHESTER, N.Y.--(BUSINESS WIRE)--Nov. 21, 2002

Annual Progress Report Details Savings Such As Recycling 94

Percent of Returned Equipment, Cutting Dust Emissions 81 Percent

Conventional thinking suggests that environmental and employee safety initiatives are a luxury for businesses in a slow economy.

Yet Xerox Corporation (NYSE: XRX) is stepping up its already-ambitious programs, and they continue to pay off for the company, its employees, its customers and the environment, according to Xerox's just-released report.

"We consider protection of the environment and the health and safety of our people to be fundamental components of our commitment to good corporate citizenship," said Jack C. Azar, vice president, Environment, Health and Safety at Xerox. "Even when changing business strategies and external pressures posed significant challenges, we never wavered."

Embedding this vision in Xerox business operations has delivered year-over-year gains in energy savings and reuse-and-recycle rates in both factories and products as well as improvements in employee safety measurements. Among the successes detailed in the company's new 2002 Environment, Health and Safety Progress Report, Xerox:

-- Prevented 149 million pounds of material from entering landfills through the reuse and recycling of Xerox equipment in 2001. Total waste diverted from landfills through equipment remanufacture and parts reuse/recycle from 1991 to 2001 was more than 1.2 billion pounds. This volume of material would fill nearly 137,000 garbage trucks, which lined up end to end would stretch 520 miles -- the distance from Chicago to Memphis.

-- Enabled energy savings of nearly 1.5 million megawatt hours of electricity in 2001 through reuse of parts and the sale of ENERGY STAR(R) products. That's enough energy to light more than 1 million U.S. homes for a year.

-- Cut emissions of ozone and dust from Xerox equipment by 56 percent and 81 percent, respectively, from a 1990 baseline. These reductions are one result of Xerox's waste-free product goals, which have also encompassed energy-efficient product design enabling customer energy savings.

-- Recycled 90 percent of all non-hazardous solid waste in 2001. That includes recovery and recycling of 94 percent of all "end-of-life" equipment returned to the company.

-- Beneficially managed 99 percent of hazardous waste through treatment, recycling or fuels blending. Since 1991 there has been an 89 percent reduction in air emissions from Xerox supplies manufacturing operations - its most chemically-intensive processes.

-- Reduced the number of musculoskeletal injuries among Xerox employees in U.S. manufacturing operations by 65 percent since 1992.

"Our goal - waste-free products from waste-free facilities - is both a challenging and a rewarding way to do business," Azar said. "It has sparked creative thinking and multimillion-dollar savings worldwide."

For instance, an energy conservation program in Rampur, India, last year reduced energy consumption in copier manufacturing operations by 46 percent. Earlier, in the U.S., Xerox employees found they could clean returned Xerox equipment with dry ice pellets instead of volatile organic solvents. The substitution not only contributed to a reduction in hazardous waste, but it has also reduced cleaning time by 40 percent and lowered cleaning costs by 35 percent.

Aiming to fine-tune its program, Xerox plans to strengthen environment, health and safety requirements for its global suppliers, invest in technology to reduce environmental impacts of its products, and continue expanding its range of products and solutions that are accessible by people with disabilities, the report said. The company is setting stretch targets for future products that include improvements in product energy efficiency and in equipment, supplies and packaging design for reuse or recycling.

Covering subjects ranging from ergonomic programs in its manufacturing facilities to the amount of electronic waste recycled, the 2002 Environment, Health and Safety Progress report provides a comprehensive view of Xerox programs worldwide. It is available at www.xerox.com/ehs/progressreport.

NOTE TO EDITORS: For more information about Xerox, visit www.xerox.com/news. XEROX(R), The Document Company(R) and the digital X(R) are trademarks of XEROX CORPORATION. ENERGY STAR is a U.S. registered mark.