BOSTON--Oct. 27, 2005-- Xerox Corporation Chairman and CEO Anne M. Mulcahy today announced a set of offerings and customer contracts that demonstrate how Xerox is executing a growth strategy driven by increasing demand for document management services and for color in businesses small to large. At the company's annual briefing with industry analysts and research firms, Mulcahy introduced new assessment services and software to help large companies increase the productivity of their printing operations by up to 40 percent and reduce costs by 20 percent. For small and mid-sized businesses, the company launched its most affordable black-and-white office multifunction product yet - starting at $399 - and a competitive color laser printer priced at $499. Xerox's leadership in color and services continues to draw customers. OfficeMax, one of the nation's largest office superstores, signed a four-year, $18 million deal that will put 1,280 Xerox color products in retail stores across the United States. Following a review of competitive color systems, OfficeMax selected Xerox DocuColor 240/250 color multifunction systems and Xerox CopyCentre C2636 digital color copiers to provide high-quality in-store printing services. In a five-year contract at Dow Chemical Co., Xerox is helping to upgrade global document management systems with about 3,500 new Xerox color and black-and-white digital multifunction systems that will provide greater reliability and cost savings. Building on market successes, Mulcahy said Xerox is pursuing a combination of "new and reinvented" opportunities designed to better serve customers and capture a bigger slice of an estimated $112 billion market. "We have new opportunities in document consulting services to help customers take costs out and put value into business processes that revolve around paper and digital documents," Mulcahy said. "We are also reinventing the fast-growing color document market through superior digital color technology for small and medium-sized businesses, large enterprises and print providers." Color Growth Mulcahy noted that Xerox's flagship iGen3 Digital Production Press is gaining momentum as the high-end digital color press of choice for commercial printing customers worldwide. More than 17 iGen3 presses were sold over seven days at the Print 05 exhibition last month in Chicago. Xerox is the industry leader in color equipment sale revenue, according to research firm IDC.(1) The company has a No. 1 market share position in high-speed digital production color and black-and-white cut-sheet systems that produce brochures, invoices, manuals and other documents on-demand.(2) To expand its leadership position, Mulcahy said Xerox has placed top priority on improving all kinds of customer interactions. A series of Xerox Lean Six Sigma projects has been launched to make it easier and more effective to work with Xerox. Global process improvements are under way in areas such as account management, billing, and customer support. "Growth is not just about customer acquisition," she pointed out. "It's about intense customer collaboration - providing Xerox people, processes and technologies to deepen relationships and solve real customer problems. By doing that better than anyone else, we can provide an unbeatable, sustainable advantage." Leading with Services To better serve customers in large enterprises, Xerox is expanding services designed to make the business of making documents less costly and more efficient. Through new Production Optimization Services, Xerox is helping companies make the most of their digital and offset printing technology investments. Lean Six Sigma assessment tools and simulation software help Xerox consultants identify inefficiencies in print and mail operations, eliminating wasteful steps and automating the way documents are produced and distributed. For example, First Data Corporation, a $10 billion electronic commerce and payments leader, turned to Xerox to streamline its printing processes and facilities. Using a tool called Lean Document Production developed in Xerox research labs, Xerox redesigned First Data's in-house print shop, increasing productivity and maximizing how equipment is used. "Xerox's analysis and recommendations helped First Data reduce expenses and, more important, improve the quality of service we can provide to our output services clients," said Tim Rosenthal, senior vice president, Output Services, First Data. Xerox's Production Optimization Services join other services offerings, including Xerox Office Services such as Office Document Assessments, fleet management and help desk support. The company's value-added services business is ramping up with nearly 100 multimillion-dollar contract signings this year around the world. Partnering for Growth To advance its document management strategy, Mulcahy emphasized the growing role of partnerships to deliver Xerox technology and services. Xerox is currently working with leading companies such as Accenture, CapGemini, EDS, Enovation and others to expand its market reach. Partners also are increasingly involved in other areas, including research and development, product distribution and administrative processes. "It's partner or perish," she said. "Xerox does many things at world-class levels and our investments are closely aligned with core competencies in document management. We bring that expertise to partners who are increasingly combining our capabilities with their own offerings to deliver superior solutions to customer problems." Xerox is working closely with Microsoft to help manage more than 7 million of Xerox's customer transactions a day, involving office printing fleets at customer locations worldwide. Xerox people also are working with Microsoft engineering and software designer teams to ensure Xerox technology and services achieve timely, full interoperability with the latest Microsoft product releases such as the upcoming version of SQL Server 2005 software. As part of its alliance with EDS, Xerox is delivering document management technology and services to support outsourcing contracts with large enterprises such as Barclays Plc in the United Kingdom and PPL Corporation, a major energy company in Pennsylvania. EDS also has expanded the use of Xerox Office Services at its own facilities around the world, including Europe, as well through Fuji Xerox in Australia and New Zealand. From Large to Small Xerox's new products for small and medium-sized businesses further broaden the company's line of printers and multifunction systems sold through indirect channels. The Phaser 6120 color laser printer, starting at $499, prints up to five pages per minute in color and 20 ppm in black-and-white. The 20 ppm WorkCentre PE220 black-and-white multifunction system, starting at $399, offers printing, copying, faxing and color scanning in one compact device. Xerox has launched 49 office and production products in 2005 and won more than 230 awards from independent testing labs and research organizations worldwide.