NEW YORK, March 20, 2001  -- Xerox Corporation (NYSE: XRX) and Scitex Digital Printing, a subsidiary of Scitex Corporation Ltd. (NASDAQ: SCIX), today announced the companies have signed a letter of intent to complete a reseller agreement. The agreement adds the blazing speed of Scitex VersaMark Series continuous feed, monochrome, spot-color and full-color web presses to Xerox's extensive arsenal of color products for high-end printing environments. Expected to be finalized soon, the agreement targets selected accounts worldwide. It would pair innovative Scitex technology with Xerox's strong distribution and marketing to offer super-high-speed color presses with lower per-page costs and customized content on every page. Running at more than 2000 pages per minute (ppm), VersaMark presses are designed to produce millions of bills, statements, direct mail and user manuals where attention-getting color can add value to variable data. Customers will include corporate data centers, high-volume service bureaus and commercial and book printers. The agreement, which would extend and support the Xerox strategy for growth in color across all market segments, would complement Xerox's high-end color portfolio and reinforce the company's commitment to the continuous-feed printing market, according to Anshoo Gupta, president of Xerox's Production Systems Group. "Customers are calling for low-cost, high-speed, 100 percent variable data in color. Scitex's modular, ultra-high-speed inkjet products are the most competitive in the market," Gupta said. "They are aimed at printers who want to upgrade their existing continuous-feed devices or who have been using a more traditional solution that involves color offset templates overprinted with variable digital data." Xerox Europe is already installing its first VersaMark press for Swedish Post, the largest service bureau in Sweden. Swedish Post is using the system to improve its production process and eliminate a major portion of 4,500 different, preprinted, customer-specific documents at substantial cost savings. "Partnering with Xerox will enable both Scitex Digital Printing, the leader in continuous inkjet technology, and Xerox, the leader in high-end color document systems, to further expand their leadership positions in digital printing," said Homi Shamir, president and CEO, Scitex Digital Printing. "Scitex Digital Printing will benefit from the largest distribution and services organization in this industry."