NORWALK, Conn. -- Xerox Corporation's board of directors announced today that Anne Mulcahy, chairman and chief executive officer, will retire as CEO effective July 1. Ursula Burns, current president of the company, was named by the board to succeed Mulcahy as chief executive officer. Mulcahy will remain as chairman of the board.

"As CEO, Anne successfully led a multibillion-dollar turnaround of Xerox and transformed the business into an innovative digital technology and services enterprise," said N.J. Nicholas, Jr., lead independent director of Xerox's board of directors. "She has consistently demonstrated values-based leadership, strong strategic insight, broad expertise and a remarkable ability to create 'followership' through the respect she earned from Xerox people. As important, Anne has focused intently on developing the next generation of leadership at Xerox, with Ursula Burns prepared to strengthen Xerox's industry-leading position in the marketplace."

Mulcahy, 56, became CEO of Xerox on Aug. 1, 2001, and chairman on Jan. 1, 2002. Prior to that, she was president and chief operating officer of the company from May 2000 through July 2001. She began her Xerox career as a sales representative in Boston in 1976. During her 33-year tenure with Xerox, Mulcahy has held senior management positions in sales, human resources and marketing, and led the Xerox business division that sells products for reseller and dealer channels.

The hallmarks of Mulcahy's leadership include a close connection to Xerox customers - she is often referred to as Xerox's chief salesperson - and an unwavering commitment to innovation. As a result, Xerox has completely overhauled its product line during her tenure, launching more than 80 products in the last three years and earning the number-one revenue share position in its industry. In addition, Mulcahy created and scaled Xerox Global Services, which offers document-related outsourcing, imaging and consulting services, and last year generated $3.5 billion in annuity revenue.

"I joined Xerox because it offered a level playing field - a sales environment where meritocracy ruled. And, I stayed because the values of the brand, the culture and the people are so closely aligned with how I think every business should operate," said Mulcahy. "It has been a privilege leading Xerox. The decision to move on is made easy only in the fact that Ursula Burns is so well positioned to take Xerox to the next level. Our strategy is sound and well defined. And, despite a tough economy, we are generating cash, building our technology and services pipeline and poised for a period of steady profitable growth in the future.

"Ursula takes on the leadership role the old-fashioned way," added Mulcahy. "She has earned it. And, for that, she has my deep respect and confidence."

Ursula Burns, 50, joined Xerox in 1980 as a mechanical engineering summer intern and later assumed roles in product development and planning. From 1992 through 2000, Burns led several business teams including the office color and fax business and office network printing business. In 2000, she was named senior vice president, Corporate Strategic Services, heading up manufacturing and supply chain operations. She then took on the broader role of leading Xerox's global research as well as product development, marketing and delivery. In April 2007, Burns was named president of Xerox, expanding her leadership to also include the company's IT organization, corporate strategy, human resources, corporate marketing and global accounts.

"During Anne's tenure, Xerox has become a stronger, financially sound company, serving a broader base of customers - from small businesses to large - with broader capabilities than ever before," said Burns. "She leaves the CEO role having created a rich legacy that I am honored to build on. It is humbling to follow such a great leader and to serve as CEO of such a great company. I'm grateful for the opportunity and, like Anne, focused on creating value for our customers, our people, our shareholders and our communities."