New Office Systems Set Standards for Efficiency, Effectiveness; Head-to-Head Tests Demonstrate Productivity Advantages NEW YORK--June 25, 2002-- Reasserting its leadership in the $53 billion office market, Xerox Corporation today unveiled a suite of systems, solutions and services designed to boost productivity and slash costs in offices small to large. At the PC Expo technology trade show, which opened here today, Xerox revitalized its office line and delivered three of the five technology platforms the company pledged to launch in 2002 - the next-generation Document Centre and DocuColor multifunction systems and an advanced form of chemical toner or "dry ink." With prices starting as low as $8,555, the Document Centre systems list for up to 30 percent less than Xerox's previous comparable models and operate up to three times faster than competitive machines. Xerox also showcased its recently expanded line of Phaser color printers for the office, announced an agreement with Omtool Ltd. to provide secure document delivery via networked multifunction devices, and expanded its focus on services that help office customers better manage document processes. "When offices improve document workflow, the results go right to their bottom line," said Gil Hatch, president, Xerox Office Systems Group. "Our goal is to lead the way to better work and help customers be more efficient and effective with unsurpassed systems, solutions and services." In a live face-off based on independent tests by Buyers Laboratory Inc., an independent evaluator of office systems, Xerox demonstrated that the real measure of productivity in a typical office is not rated speed, but the actual time it takes to produce a job from start to finish. Running a suite of 15 common office jobs - including e-mail, Microsoft Word, Microsoft PowerPoint and Adobe Acrobat documents - as one network queue, the 45 page-per-minute (ppm) Document Centre 545 finished approximately 60 to 75 percent faster than the 50-ppm Canon and Hewlett-Packard machines and two times faster than a 105-ppm Ricoh machine(a). "Because Xerox understands how people work, its systems, software and services are designed to help customers produce more work and better work while lowering costs," Hatch said. He cited Office Document Assessments completed for customers that project an average savings of 41 percent in device and infrastructure costs, when systems based on networked multifunction devices replace the typical mix of office equipment. PC Expo announcements delivered on Xerox's strategy to improve effectiveness and efficiency in the office. They included: * The Document Centre 500 Series digital multifunction systems, offering black-and-white copying, scanning to e-mail, Internet faxing and printing at speeds of 35, 45 and 55 ppm. These network products bring unparalleled productivity and big-office features to small and mid-sized workgroups. Their footprint is up to 40 percent smaller than older models, a space bonus for crowded offices. * The DocuColor 2240 and 1632 Printer/Copiers, which deliver affordability and speed, with a benchmark cost for color prints and copies of less than 10 cents a color page. Destined to advance the transition from black-and-white to color printing in the office and among quick-print firms, these systems make color prints at a rate of 22 and 16 ppm and black-and-white prints at 40 and 32 ppm, respectively. Improvements in operating costs are supported by chemically produced EA (emulsion aggregation) toner, developed by Xerox research scientists. U.S. list prices for the DocuColor models start at $17,900. * A solution that couples Omtool Ltd.'s AccuRoute software with the scanning capabilities of Xerox's Document Centre digital multifunction systems for secure, private delivery of documents. The system simplifies the distribution of hardcopy documents in electronic form, offering a secure alternative to courier and postal charges. * Expanded printing options for mobile workers, which include an agreement to resell Electronics for Imaging's PrintMe Internet printing system and an upgrade of Xerox's mDoc wireless document access software. Rounding out the Xerox office offerings are the Phaser 8200 solid ink color printer and the Xerox Phaser 6200 color laser printer, announced in May. They also are designed to fuel the migration to color in the office by offering cost and print quality advantages that make it practical to replace black-and-white printers.