MIAMI BEACH, Fla.--Jan. 18, 2002--In a speech to top quick printers today, Xerox Chairman and CEO Anne Mulcahy said poor technology acquisition decisions could result in a growing number of business failures - but the smartest and strongest will prosper. Mulcahy was the featured speaker at AlphaGraphics' annual "Gold Circle'' gathering of about 100 executives and high-revenue-producing franchisees. AlphaGraphics, a major Xerox global account, is one of the world's largest quick-print franchises with hundreds of retail printing shops in the U.S. and 19 other countries. "AlphaGraphics went into the New Business of Printing early, seeing the need to create, distribute and print anywhere in the world, anytime. These trends are driven by customer needs for fast turnaround, precise quantities and customization. They also present fast-rising revenue and volume opportunities. It's all about finding more ways to make more money,'' Mulcahy said. She pointed out that the economy and other issues have stalled growth but cited printing industry research showing improvement in the latter half of 2002 and in 2003. "We share the mutual challenge and opportunity to capture growth in a changing market with increased competition. The need to leverage new technology, attract skilled talent, and offer new solutions and services has never been greater,'' Mulcahy emphasized. The quick-print industry has been at the forefront of the transition from traditional printing to digital printing. The trend is now expanding to higher end commercial printing. "But technology alone is not the answer,'' she said. "Poor equipment choices cause a significant number of business failures. If you can't make money with it, don't buy it. At Xerox, we're developing better ways to help customers apply technology profitably by adding more value to documents and focusing on services -- not just output.'' Xerox offers a Marketing Partnership Program designed to help printers effectively market digital services. The company is also doing more to promote color, variable data and personalization capabilities through tool kits and advertising. Rob Nielsen, an AlphaGraphics sales consultant in Greenville, S.C., said he has benefited from increased support. "The things I've learned through Xerox's digital training and marketing program recently helped me close a sale worth up to 40 million impressions a year. Without what I learned, I would not have been able to put the deal together.'' Responding to questions on market performance and competition, Mulcahy said Xerox is making strides but more remains to be done. "We're closing gaps in our product lines, pricing, sales and support infrastructure. These actions are not only putting us back in the game but also positioning us to win,'' she said, pointing to stabilizing market share in digital monochrome printing and leadership in color. "Our competition has been aggressive, and I am here to tell you we're fighting back with more productive, affordable systems and solutions.'' Mulcahy highlighted five new technology platforms coming to market this year: the Xerox DocuColor iGen3(TM) Digital Production Press, a common DocuSP controller for color and monochrome production systems, new office color and black-and-white platforms, and "EA Technology,'' a new category of chemically produced dry inks.