STAMFORD, Conn.--June 21, 2002--Xerox announced today the renegotiation of its $7 billion revolving line of credit. The company has repaid $2.8 billion of the revolver and extended the maturity date for the remaining $4.2 billion. "Xerox's strengthened financial position and improved operational performance contributed to our successful renegotiation of the revolver," said Anne M. Mulcahy, Xerox chairman and chief executive officer. "With this new credit facility, we are better positioned to effectively manage our liquidity while focusing intently on building back value in the company." Effective today, the new credit facility consists of three term loans totaling $2.7 billion and a $1.5 billion revolving line of credit. The first term loan of $700 million must be completely repaid by its final maturity this September. The remaining term loans and the revolving line of credit have a final maturity of April 30, 2005. "The completion of the revolver renegotiation as well as continued progress in transitioning equipment financing to third parties are evidence of the progress Xerox is making to restructure its balance sheet and restore its financial health," added Lawrence A. Zimmerman, Xerox senior vice president and chief financial officer. Following the repayment of the $2.8 billion portion of the revolver and $1.3 billion in debt that matured this quarter, Xerox's current worldwide cash position is about $1.7 billion.