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XEROX PLANS TO SUPPORT MICROSOFT AT WORK ARCHITECTURE; WILL JOIN MICROSOFT TO INTEGRATE PCs AND OFFICE PRODUCTS

 NEW YORK, June 9 /PRNewswire/ -- Xerox Corporation (NYSE: XRX) today announced its intention to bring to market a family of digital document products that will combine the Microsoft At Work architecture with advanced Xerox document imaging technologies. These products will provide better integration with personal computers and redefine the ways people create, produce and distribute documents.
 The new family of Xerox document products -- including fax machines, printers and digital copiers -- will incorporate Xerox intelligent document software to provide new functionality and features, distinguishing them from other products that use the Microsoft At Work architecture. These products support the Xerox goal of expanding the power of the document to improve interaction among people and create new levels of productivity.
 "We're focused on improving our customers' business environments through superior document products and services," said Paul A. Allaire, chairman and CEO of Xerox. "Our knowledge of how people use documents, combined with our expertise in document software and hardware design, enable us to deliver highly integrated document systems that work the way people do," he added.
 "Xerox' reputation in document products complements our position in software technology," said Bill Gates, chairman and CEO of Microsoft. "The Xerox and Microsoft brands will be a winning combination for our customers."


THE NEW INTEGRATED OFFICE
 Today, personal computers and office machines are not well- integrated, creating duplication of effort and resulting in diminished workflow and productivity. As The Document Company, Xerox recognizes the need to simplify the process, allowing people to easily move their ideas and creativity -- through documents -- between the electronic and paper worlds.
 A new family of Xerox products will incorporate Xerox advanced Document Services software that builds on the core Microsoft At Work architecture. For example, a Xerox smart fax machine could create personalized cover sheets and automatically route documents directly to an individual's computer for faster access, simplifying mass distribution. An intelligent copier could extract designated portions of documents and reproduce only the highlighted sections.
 These new products will also support Xerox Smart Paper(TM) documents, which incorporate glyph technology. Glyphs embed intelligence in paper documents, providing them with encoded data that can be read by the machine. These Smart Paper documents are portals to the electronic world, enabling information to move easily from paper to electronic form and back. For example, a user could request information from a remote server simply by checking boxes on a Smart Paper form and sending it through a Xerox smart fax machine.
 "These document solutions will close the loop between the paper and electronic worlds," said Paul Ricci, president of Xerox Advanced Office Document Services division. "The combination of Microsoft At Work and Xerox imaging software will set the standards for a new family of office products."
 Xerox and Microsoft (NASDAQ: MSFT) share a common goal of tightly integrating PCs and office products. On June 8, the two companies announced that they signed an agreement in principle for a broad strategic partnership. Under the agreement, they will jointly define application programming interfaces (APIs) in the areas of image processing and remote diagnostics. Additional areas of cooperation will be disclosed later.
 Xerox Corporation is a global enterprise serving the worldwide document processing market. The company's Document Processing business develops, manufactures, markets, services and finances a complete range of products and services designed to make offices around the world more produ.?
 -0- 6/9/93
 /CONTACT: Jeff Simek of Xerox Corporation, 716-423-5230; Lisa Gillespie of Cunningham Communication, Inc., 408-764-0754, for Xerox; Collins Hemingway of Microsoft Corporation, 206-882-8080; or June f? Waggener Edstrom, 503-245-0950, for Microsoft/
 (XRX MSFT)


CO: Xerox Corporation; Microsoft Corporation ST: New York, Washington IN: CPR SU: JVN

BM -- CL004 -- 0058 06/09/93 10:01 EST
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Date:Jun 9, 1993
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