NEW YORK--April 30, 2003-- Going after a larger slice of the $52 billion office document market, Xerox Corporation today announced a complete transformation of its office market strategy, enhanced its line with several new offerings, and instituted aggressive value pricing -- all in a campaign to reach both large and small customers with new products and services. "Today is all about growth," said Anne M. Mulcahy, Xerox chairman and chief executive officer. "Over the past two years we have revamped every aspect of our office business -- from manufacturing to distribution -- to develop a leaner, more cost-effective and efficient business model. With our strengthened operations, we now can be more competitive in the office, offer aggressive pricing and deliver substantial value to customers in more market segments. "The office market is our heartland, and we have invested more than $1.9 billion in research and development for office platforms over the past five years," she said. "We will leverage that investment, and the new offerings resulting from it, to fuel growth for Xerox and our customers." Xerox today showcased a suite of 21 new and enhanced office products -- including nine new digital copiers, basic multifunction products that print and copy, and advanced MFPs that print, copy, fax, scan and e-mail. The new line has speeds ranging from 16 to 90 pages per minute (ppm) and prices starting as low as $899, reflecting the most competitive pricing for the office in Xerox's history. "Whether you operate a small, family business or a large, global enterprise, Xerox will be there with the features you need at prices you want," Jim Miller, president, Xerox Office Group, told customers meeting here. The company also spotlighted software solutions developed by eight industry partners using the open architecture of Xerox multifunction systems, and focused on innovative people-based services designed to help customers reduce document costs and increase worker productivity. Strategy for Office Growth In its most significant product announcement of the year, Xerox presented an action plan to grow profitable revenue and reclaim market share in its $7.5 billion office business. Xerox is a one-stop provider for all office product and services needs, from stand-alone digital copiers and printers to top-of-the-line, networked multifunction systems in black-and-white and color. Features previously bundled with higher-priced products are now available in new entry-level configurations so customers can purchase only what they need. At the same time, the company is expanding its range of office services, including Office Document Assessments, which can result in savings of up to 40 percent by streamlining document work processes. A recently launched television advertising campaign promotes the Office Document Assessment service. To make it easier to buy from Xerox, the company is expanding its worldwide distribution channels, such as TeleWeb operations, resellers, dealers, agents and concessionaires in addition to direct sales. For the first time in the U.S., Xerox will offer selected office multifunction systems through key distributors and resellers in a pilot program aimed at providing a wider range of products to resellers who previously only sold Xerox printers. And in a break with standard practice in the multifunction market, Xerox will start to post product pricing on its Web site, at www.xerox.com. Selected systems will be available beginning May 1 in the U.S. and Canada, followed by other multinational markets later this year. Office Product Line Up All Xerox digital copiers and office multifunction systems now belong to one of three families -- CopyCentre(TM), WorkCentre or WorkCentre Pro. They feature both new products and others that have been redesigned, re-priced and renamed. CopyCentre products are affordable choices for customers who want fast, reliable digital copiers. They are available in speeds ranging from 16 ppm to 90 ppm and can be upgraded to a multifunction system -- as customers' needs change and grow. The new CopyCentre C32 and C40 color-capable copiers provide the most cost-effective color copying in the industry. Users pay only for color on pages produced in color; the rest are charged at standard black-and-white costs eliminating the penalty typically associated with using color products to make black-and-white pages. WorkCentre products are cost-effective, basic multifunction devices, providing copying and network printing with options for scanning, faxing and e-mailing. Speeds range from 16 ppm to 55 ppm. These products enable companies to consolidate equipment, save space and energy, and increase office productivity. WorkCentre Pro MFPs copy and print at speeds from 16 ppm to 90 ppm in color and monochrome. They offer open architecture, advanced networking, and easy integration with solutions from third-party providers. Rounding out Xerox's office product family are existing Phaser network printers, including solid ink color imaging technology which maximizes speed and image quality while significantly reducing cost. Partner Solutions Enhance MFPs Xerox has worked closely with third-party partners to develop network scanning, faxing and accounting solutions. More than a dozen updated and new solutions were announced today. Among them, Omtool Ltd.'s AccuRoute software, which works with the WorkCentre Pro to provide secure network faxing and document transmission for legal markets where privacy is paramount. Other Premier Business Partners include Captaris Corp., Cardiff Software Inc., Cobra Technologies, Control Systems Inc., Equitrac Corporation, Kofax Image Products Inc. and ScanSoft Inc. For more information about Xerox, visit www.xerox.com or call 800-ASK-XEROX.