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U.S. Attorney Reviewing Xerox Accounting Matters

Press release from the issuing company

STAMFORD, Conn.---Sept. 23, 2002--Xerox Corporation learned this evening that the U.S. attorney's office in Bridgeport, Conn., is conducting an investigation into Xerox's past accounting issues, which had been previously reviewed by the Securities and Exchange Commission. As disclosed on April 11, Xerox concluded its settlement with the SEC related to accounting matters that had been under investigation since June 2000. Under the terms of the settlement, the company restated its financials for the years 1997 through 2000 and adjusted its previously announced 2001 results. On June 28, Xerox filed its 2001 10-K, which included its restated financials from prior years. The company will cooperate fully with the U.S. attorney's office.

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