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Xerox Retains PricewaterhouseCoopers as New Accountants

Press release from the issuing company

STAMFORD, Conn.--Oct. 5, 2001--Xerox Corporation today announced that PricewaterhouseCoopers LLP has been named the company's independent accountants for the fiscal year ending December 31, 2001, replacing KPMG LLP. "KPMG and Xerox have had a long and important relationship,'' said Paul A. Allaire, Xerox chairman. "While Xerox appreciates their service on our behalf, the Board and its Audit Committee believe it is appropriate at this time to bring in new accountants. We fully expect a smooth and seamless transition to PricewaterhouseCoopers.'' Xerox today is filing a Form 8-K with the Securities and Exchange Commission detailing the change in the company's independent auditor. The Audit Committee and the Board of Directors approved this week the company's decision to change independent accountants.

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