STAMFORD, Conn. & PLANO, Texas--Nov. 25, 2002--Xerox Corporation and EDS today announced a strategic alliance designed to integrate EDS' information technology (IT) services with Xerox's document management systems and services to provide customers with one-stop shopping and full support of their office IT infrastructure. Under terms of the alliance agreement, EDS, which manages more than 3.3 million desktops worldwide, becomes a systems integrator for Xerox products, software and solutions, creating a seamless "input-to-output" solution for existing and future customers that rely on EDS for desktop management services. In addition, Xerox becomes EDS' global internal supplier of choice for all print, copy and fax systems and related services. The alliance targets the burgeoning market for desktop and document management services and the emerging convergence of IT services for the general office. "Businesses today are focused on efficiency and simplicity for all systems and processes in their workplace. The objective of our alliance with EDS is to provide just that - a better, more productive way to work," said Anne Mulcahy, Xerox chairman and chief executive officer. "Whether it's a high-end production infrastructure or a networked office environment, Xerox and EDS can together provide the integrated systems and services at a lower cost with a single point of accountability. It's a combination of talent and technology that is a win for customers and both companies." Today's announcement further broadens the business relationship between EDS and Xerox. In November 2001, the two companies jointly announced an IT outsourcing contract extension for EDS and a preferred printer provider designation for Xerox. "Together with Xerox, we have created a compelling value proposition to transform the way our clients do business," said Dick Brown, EDS chairman and chief executive officer. "This latest initiative between two industry leaders builds on our strong relationship and will produce a new set of innovative, integrated products and services that help clients increase employee productivity while reducing technology infrastructure costs." Managed Output Services Managed Output Services combines Xerox office services and systems with EDS' desktop management support. The offering includes Xerox's full range of office products - color and black-and-white networked printers, digital copiers and multifunction systems - combined with a suite of document and desktop software and services to effectively manage the customer's total networked office environment. One of the services offered by Xerox is an Office Document Assessment (ODA), which examines a customer's enterprise to understand overall document requirements, including how customers are spending their money and time in document-related processes in the office. Upon completion of an ODA, Xerox and EDS will provide recommendations to help customers manage documents and related processes more efficiently across their enterprise. The new Managed Output Services offering is immediately available in the U.S. and will be expanded globally through EDS and Xerox field organizations. "Integrating desktop outsourcing with document management is emerging as a major market opportunity as companies aggressively pursue the ability to reduce costs while improving the efficiencies of their infrastructure," said Peter Grant, principal analyst, Gartner. EDS and Xerox are also working together to develop joint go-to-market initiatives including integrated solutions for clients with high-end production printing requirements, more solutions for the mobile office environment and a wider range of document and IT services. The alliance has already been successful in achieving results for clients such as Avista Corp., an energy company involved in the production, transmission and distribution of energy as well as other related businesses. "We were looking for ways to add customer value while improving operational efficiency to drive down cost when the joint team of EDS and Xerox approached us," said Jim Kensok, chief information officer of Avista. "Their combined solution offered us innovation and enhanced service offerings from established vendors. More importantly, we achieved the best value at the right cost."