ROCHESTER, N.Y., April 4, 2001 Xerox Corporation (NYSE: XRX) today introduced the WorkCentre Pro 416, a digital multifunction product that offers essential digital features at affordable prices for one of the fastest-growing segments in today's market - the small office. More powerful than Xerox SOHO multifunction laser and inkjet products and less costly than Xerox Document Centre products for departmental use, the WorkCentre Pro 416 delivers on Xerox's commitment to support the digital office in new ways with more affordable, high-quality products. The new series will also be marketed primarily through dealers, agents and concessionaires, reflecting Xerox's strategy to distribute office products through more cost-effective indirect channels of distribution. The WorkCentre Pro 416 prints and copies at 16 pages per minute (ppm). In addition, it provides the rich functionality of larger multifunction devices such as scan-once-print-many capability, electronic collation and booklet creation at a price substantially lower than Xerox's current line of Document Centre products. The 13- to 20-ppm multifunction market is the fastest-growing segment in the digital office market, according to IDC, an independent technology research firm. It is predicted to grow at 35 percent per year from 1999 to 2004. "Small office and workgroup customers are looking for an affordable way to benefit from the key functions of digital technology without paying for some of the extras included on higher-end devices," said Keith Kmetz, IDC. "The WorkCentre Pro 416 fills the gap for Xerox and provides customers with a solid digital solution that fits their size and budget."