- Watch for exclusive analysis about this news coming on Monday. NEW YORK--Jan. 29, 2004-- Gaining traction on its growth trajectory, Xerox Corporation today unveiled two breakthrough technology platforms coupled with consulting services that put new power into its core production and office markets. The offerings - including five new printing and imaging systems ranging from $979 to $99,000 - beef up what is already the industry's broadest document product and services portfolio. "These platforms fundamentally change the competitive dynamics of today's markets, delivering ways to help customers make and save money," said Anne Mulcahy, Xerox chairman and chief executive officer. "They present an opportunity to build new businesses, enrich existing ones and ultimately transform the way work flows through enterprises of every kind." According to Mulcahy, who will address customers here today in an event broadcast to 10 locations worldwide, Xerox's new platforms are based on clean-sheet designs that will result in faster product development cycles and lower manufacturing costs. They will also spawn a steady stream of technologically superior, next-generation products over the next several years. The first offerings to result from the new platforms are: * The DocuTech 100 and 120 Copier/Printers, two black-and-white 100 and 120 page-per-minute digital systems that create a new mid-production market segment and set image-quality, productivity, ease-of-use and reliability benchmarks. They bridge the gap between current light-production copier/printers and heavy-duty systems, offering features previously available only on high-end equipment. The platform can produce customized black-and-white brochures, newsletters, manuals and booklets that deliver offset-equivalent print quality without the time and expense. "This next generation of DocuTech is, in many respects, a revolutionary product, bringing a new quality and price-performance level to quick and commercial print shops, in-plant operations, and large offices," said Barb Pellow, Gannett Professor of Printing and Publishing at Rochester Institute of Technology. * The Phaser 8400, the first office color printer derived from a new solid ink technology platform, runs at an unprecedented 24 ppm - in color or black-and-white, all for less than $1,000. IDC research shows the sub-$1,000 segment is the fastest-growing part of the U.S. color page printer market, growing at 212 percent year-over-year in unit shipments*. The Phaser 8400 breaks a key price barrier while setting an industry standard for speed, performance and functionality. "To say that the 8400 is an impressive performer is an understatement," said PC Magazine, which has published an early independent review of the printer. Xerox simultaneously rolled out two other office printers, the Phaser 4500 black-and-white laser printer and the Phaser 7750 color laser printer - each offering unmatched performance and value. In addition, the company showcased enhanced consulting services aimed at streamlining document-intensive processes in offices and in high-volume production environments, such as large commercial print operations that produce direct mail campaigns, statements and insurance policies for Fortune 500 clients. Xerox is working with customers to uncover hidden costs, reduce waste and standardize processes. "Printing is only one part of the equation. Our strategy goes beyond total print management to focus on smart document management throughout the enterprise," said Ursula Burns, president, Xerox Business Group Operations. "We're helping customers look at the interplay of people, process and technology to find real and measurable cost savings." Xerox customers including Continental Airlines, Prudential Financial, AlphaGraphics, and major commercial printers will join Mulcahy and Burns on stage to share first-hand experiences on how they increased productivity while reducing costs. Next-Generation DocuTech The two DocuTech copier/printers represent the first major redesign of the DocuTech line, which launched the transformation of traditional offset printing to digital in 1990. The result of a $400 million development effort that generated more than 300 patents, this black-and-white platform creates a new digital alternative to offset printing. Because these DocuTechs are built for reliability, they are capable of consistently producing as many as 700,000 pages a month. They have 40 percent fewer moving parts than existing digital production printers. A scanning system built around breakthrough Xerox technology scans both sides of a two-sided document at record speed and quality. The DocuTech 100 starts at $77,000 and the higher-speed DocuTech 120 is priced up to $99,000. Order-taking starts Feb. 1 with initial installations beginning in March. New Solid Ink Platform Xerox rolled out its first solid ink platform since the advanced office color printing technology was redesigned in 1998. The Phaser 8400 is the first of a family of color printers built around this new solid ink architecture. Innovations in print head design result in smaller, more uniform ink drop size. Image quality is further enhanced by 300 percent more inkjets that fire 30 million drops per second. The redesign shaved 25 percent off the printer's weight and cut the number of parts from about 600 to a dozen sub-assemblies. Like other solid ink products, the Phaser 8400 uses a considerably lower volume of materials to produce color prints. Thus, it produces 97 percent less waste than a comparable color laser printer over the life of the product. It starts at $999 and is available immediately. Xerox's other new office printers are the Phaser 4500, a 36-ppm black-and-white laser printer, and the Phaser 7750, a 35-ppm color laser printer. With more features and faster print speed than other printers in its class, the Phaser 4500 starts at $979. The Phaser 7750 color laser printer is designed for graphic arts and office professionals who need high-quality color output for day-to-day printing and pre-press proofing. Starting at $5,599, it's 46 percent faster than other color laser printers. Both printers are available immediately. Ramping Up Consulting Services As part of its focus on people-based consulting services, Xerox Global Services is expanding Six Sigma-based service offerings designed to help office and production customers save money and improve productivity. Xerox's new Production Services help clients with high-volume printing needs to deploy the right technology with the right processes. Production Document Assessments help redesign printing facilities into more efficient operations, enabling customers to reduce turnaround times and deliver marketing materials quicker. Xerox is also ramping up office services through the use of Office Document Assessments that help customers save up to 40 percent in document-related costs. These assessments have been strengthened with a standardized methodology to ensure improved focus on document output processes. In addition, Xerox has enhanced Web-based software tools that monitor networked devices and correct potential printer or network problems before they occur. Xerox's expanded portfolio of digital systems and value-added services is generating returns through increased customer demand and share gains in targeted markets, as evidenced by the company's equipment sales growth reported earlier this week. For the fourth quarter 2003, equipment sales grew 11 percent with 60 percent of all fourth-quarter equipment sales due to the 38 new products launched within the past two years.