STAMFORD, Conn.--Oct. 12, 2001--Xerox Corporation today announced preliminary third-quarter results that include an estimated $3.8 billion to $4 billion in revenue and a loss in the range of 22 to 25 cents per share, before net restructuring charges of 5 cents. Results were impacted by a number of factors including a reduction of approximately 9 cents due to currency losses from unhedged exposures, a tax rate change, and a property insurance deductible related to Sept. 11 losses. "In many regards, Xerox's performance in July and August exceeded expectations and we were well positioned to meet our third-quarter targets,'' said Anne M. Mulcahy, Xerox president and chief executive officer. "However, the events of Sept. 11 resulted in a significant impact on sales for the balance of the month - typically the strongest two weeks of the quarter. "We continue to aggressively implement our cost-reduction initiatives and focus on operational improvements. With further progress expected in these areas, we remain cautiously optimistic for a return to operational profitability in the fourth quarter,'' added Mulcahy. The company also reported continued progress in strengthening its liquidity. After the repayment of approximately $350 million in third-quarter maturing debt, Xerox had $2.4 billion in cash at the end of September, compared to $2.2 billion at the close of the second quarter. Xerox continues to be in full compliance with its debt covenants and expects the consolidated tangible net worth cushion to be approximately $200 million. Xerox will report its full third-quarter results on Oct. 23, 2001.