Xerox Surpasses Competition With New Color Inkjet All-in-one Priced $200 Less Than Hewlett-Packard.

Business Editors/High Tech Writers

ROCHESTER, N.Y.--(BUSINESS WIRE)--Oct. 23, 2000

WorkCentre XK50cx Offers High-Quality Performance

at Low Cost to SOHO Customers

Xerox Corporation (NYSE: XRX) today expanded its presence in the small office/home office market with the Xerox WorkCentre XK50cx, a new color inkjet flatbed all-in-one product.

With a suggested street price of $599, the WorkCentre XK50cx is $200 less than the comparable Hewlett-Packard product and offers more fax memory and a faster fax transmission speed - in both color and black-and-white.

The WorkCentre XK50cx combines vivid color inkjet printing, color scanning, and color flatbed faxing and copying. The plain-paper fax can store up to 160 pages in memory, nearly 30 percent more than the comparable HP model, the HPG85. The 33.6 Kbps modem also transmits and receives faxes at three seconds per page, twice as fast as HP.

"The WorkCentre XK50cx provides consumers with the reliability, functionality and product quality that they have come to expect from Xerox, all at an affordable price," said Jim Miller, president, Xerox SOHO Business Group.

The WorkCentre XK50cx prints up to 12 pages-per-minute (ppm) in laser-quality black and up to 7 ppm in photo-quality color with a resolution of up to 2400 x 1200 dots-per-inch (dpi). As a copier, the WorkCentre XK50cx produces up to 10 copies-per-minute (cpm) in black and up to 5 cpm in color at 600 dpi, without a PC connection required.

In addition, it can fax and copy "out-of-the-box," and it offers flatbed (platen-based) color copying and scanning -- features typically offered only in higher-priced business machines. The Xerox WorkCentre XK50cx also features an easy one-touch scanning option, enabling users to scan color documents and images at the touch of a button.

For quick and easy installation, the WorkCentre XK50cx offers both parallel and USB options and ships with a USB cable in the box. The WorkCentre XK50cx operates in Windows 95/98/2000 and Windows NT 4.0 environments. Windows ME drivers will be available post-launch.

PagisPRO 3.0 software, which includes ScanSoft's TextBridge PRO 98, comes bundled with the product and allows Windows 95/98 and Windows NT 4.0 users to capture, use and organize documents.

The WorkCentre XK50cx comes with a one-year warranty with multiple service offerings, including overnight exchange. It is available immediately through a variety of office superstores, computer superstores, consumer electronic stores and resellers in the United States.

NOTE TO EDITORS: XEROX(R), The Document Company(R) and the digital X(R) are trademarks of XEROX CORPORATION.

Customer Contact: For more information, visit www.xerox.com or call 800-TEAM-XRX (832-6979).