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XEROX TO CONTINUE ACCOUNTING FOR FINANCIAL SERVICES BUSINESSES ON CONSOLIDATED BASIS IN REPORTS

 STAMFORD, Conn., March 19 /PRNewswire/ -- Xerox Corporation (NYSE: XRX) announced today it will continue to consolidate results from the company's insurance and other financial services businesses for Generally Accepted Accounting Principles (GAAP) reporting purposes.
 This decision was communicated in connection with the issuance of the company's 1992 financial statements today.
 Earlier this year, Xerox had said it would be deconsolidating insurance and other financial services results in line with its announced strategy to exit those businesses.
 As a result of the decision to continue consolidated accounting, future profits from the financial services businesses, after allocated interest expense, will not be deferred, to the extent of net cumulative profits, as previously indicated.
 The decision is based on a more recent, technical interpretation of the meaning of "temporary control" in FAS 94, the Financial Accounting Standards Board's publise?d standard relating to consolidation.
 Consolidating the financial results of insurance and other financial services has no impact on 1992 reported earnings per share or the company's strategic decision to disengage from these businesses to concentrate on its core document processing business, Xerox said.
 For analytical purposes, the company said it will continue to report earnings per share for its document processing business separate from earnings per share for consolidated operations.
 Consistent with the strategy to disengage from financial services, Xerox: completed the sale of The Van Kampen Merritt Companies, Inc. in February; is holding discussions to sell a majority share of Furman Selz Holding Corporation to its employees; is involved in preliminary discussions with potential buyers of Xerox Financial Services Life Insurance Company; and has filed a preliminary proposed restructuring plan for Crum and Forster, Inc. with its principal insurance regulator.
 -0- 3/19/93
 /CONTACT: Thomas C. Abbott of Xerox, in Connecticut, 203-968-3378/
 (XRX)


CO: Xerox Corporation ST: Connecticut IN: SU:

334 03-19-93 12:44 EST LD-WB -- NY026 -- 8112 03/19/93 18:24 EST
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Date:Mar 19, 1993
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