Xerox Chosen First Recipient of U.S. State Department Award for Corporate Excellence; Secretary of State Madeleine Albright Recognizes Company's Outreach Efforts in Brazil.

Business Editors

WASHINGTON, D.C.--(BUSINESS WIRE)--December 21, 1999

Xerox today was honored by the United States government with the inaugural U.S. Department of State Award for Corporate Excellence. The award, presented at a State Department ceremony this morning, recognizes the company's outstanding corporate citizenship, innovation and exemplary business practices in Brazil.

Secretary of State Madeleine Albright presented Xerox president and CEO Rick Thoman with the award, citing the company's impressive contributions to Brazil's social development through innovative youth training programs and environmentally friendly recycling initiatives.

In accepting the award, Thoman praised the outstanding efforts of the 5,000 Xerox do Brasil employees who volunteer their time and talents to support Xerox' social programs, and he challenged other companies to take a leadership role in promoting goodwill throughout the regions where they do business.

"Xerox has learned through its many worldwide outreach programs that doing good is good for business," said Thoman. "Communities are appreciative, employees are motivated, and customers - even potential customers are enlightened to see a different side of your business."

Each year, Xerox do Brasil directs more than $1 million to social programs and community projects throughout Brazil. The investment has helped to build some of the greatest community resources in the region:

Mangueira Olympic Village: Xerox believes youth participation in sports is a formidable means of encouraging school attendance. That's why the company helps thousands of children participate in the Olympic Village's sporting activities by providing funding for teachers, coaches, equipment, meals, and transportation. In addition to sponsoring youth in sports, the Mangueira Village has child care facilities, a clinic, a computer room, and offers tradecraft instruction for 220 apprentices each year. More than 1,400 students study at Mangueira's school, and 3,000 people annually are treated at the Mangueira clinic.

Factory of Hope: The Factory of Hope is home to economic and social projects that provide assistance to the community of Acari, one of the poorest suburbs of Rio de Janeiro. Xerox, one of the first companies in the region to establish projects at the site, offers professional training courses for teenagers on building maintenance and electromechanics, and workshops on running and servicing Xerox equipment. More than 60 students graduate from the manual trades training program each year.

Traineeship - Camp Mangueira: Offered at Xerox facilities, this training program provides personal and professional guidance for young people eager to enter the job market. Last year 400 students benefited from the positive influence of training in a professional work environment. Many of the participants are now full-time Xerox employees.

Reprographic Library: Helping to preserve the history of the Brazilian people, the Xerox reprographic library re-issues out-of-print books and publishes valuable research studies. Publications are distributed free of charge to libraries, researchers, universities, book lovers, and other interested organizations.

Recycling at Xerox: All of Xerox' plants and offices in Brazil are active in "Reduce, Reuse and Recycle" initiatives. Xerox uses the funds generated from recycling centers to sponsor environmental education projects for children.

Xerox was nominated for the State Department award by the Embassy Rio de Janeiro, Brazil. Xerox do Brasil was formed in 1965 and has sales and administration offices in Rio de Janeiro as well as manufacturing and engineering facilities in Manaus, Resende, Salvador and Vitoria.

NOTE TO EDITORS: XEROX(R), The Document Company(R) and the stylized X are trademarks of Xerox Corporation. Product and service names profiled herein are trademarks of Xerox Corporation. Any other named products profiled herein are trademarks of their respective companies.