BW20030501000049  20030501T132047Z UTC


( BW)(XEROX-CORP.)(XRX) Miscellaneous

    Business Editors
    UK REGULATORY NEWS

    LONDON--(BUSINESS WIRE)--May 1, 2003--


     GOING FOR GROWTH, XEROX LAUNCHES AGGRESSIVE OFFICE STRATEGY, 
       PRICING; ADDS PRODUCTS, SERVICES TO REACH MORE CUSTOMERS

          Expanded Line Delivers New Value with 21 Offerings,
             Including Nine New Models - Starting at $899

NEW YORK, April 30, 2003 - Going after a larger slice of the $52
billion office document market, Xerox Corporation (NYSE: XRX) today
announced a complete transformation of its office market strategy,
enhanced its line with several new offerings, and instituted
aggressive value pricing - all in a campaign to reach both large and
small customers with new products and services.

"Today is all about growth," said Anne M. Mulcahy, Xerox chairman and
chief executive officer. "Over the past two years we have revamped
every aspect of our office business - from manufacturing to
distribution - to develop a leaner, more cost-effective and efficient
business model. With our strengthened operations, we now can be more
competitive in the office, offer aggressive pricing, and deliver
substantial value to customers in more market segments.

"The office market is our heartland, and we have invested more than
$1.9 billion in research and development for office platforms over the
past five years," she said. "We will leverage that investment, and the
new offerings resulting from it, to fuel growth for Xerox and our
customers."

Xerox today showcased a suite of 21 new and enhanced office products -
including nine new digital copiers, basic multifunction products that
print and copy, and advanced MFPs that print, copy, fax, scan and
e-mail. The new line has speeds ranging from 16 to 90 pages per minute
(ppm) and prices starting as low as $899, reflecting the most
competitive pricing for the office in Xerox's history.

"Whether you operate a small, family business or a large, global
enterprise, Xerox will be there with the features you need at prices
you want," Jim Miller, president, Xerox Office Group, told customers
meeting here.

The company also spotlighted software solutions developed by eight
industry partners using the open architecture of Xerox multifunction
systems, and focused on innovative people-based services designed to
help customers reduce document costs and increase worker productivity.

Strategy for Office Growth

In its most significant product announcement of the year, Xerox
presented an action plan to grow profitable revenue and reclaim market
share in its $7.5 billion office business. Xerox is a one-stop
provider for all office product and services needs, from stand-alone
digital copiers and printers to top-of-the-line, networked
multifunction systems in black-and-white and color. Features
previously bundled with higher-priced products are now available in
new entry-level configurations so customers can purchase only what
they need.

At the same time, the company is expanding its range of office
services, including Office Document Assessments, which can result in
savings of up to 40 percent by streamlining document work processes. A
recently launched television advertising campaign promotes the Office
Document Assessment service.

To make it easier to buy from Xerox, the company is expanding its
worldwide distribution channels, such as TeleWeb operations,
resellers, dealers, agents and concessionaires in addition to direct
sales. For the first time in the U.S., Xerox will offer selected
office multifunction systems through key distributors and resellers in
a pilot program aimed at providing a wider range of products to
resellers who previously only sold Xerox printers. And in a break with
standard practice in the multifunction market, Xerox will start to
post product pricing on its Web site, at www.xerox.com.

Selected systems will be available beginning May 1 in the U.S. and
Canada, followed by other multinational markets later this year.

Office Product Line Up

All Xerox digital copiers and office multifunction systems now belong
to one of three families - CopyCentre(TM), WorkCentre(R) or
WorkCentre(R) Pro. They feature both new products and others that have
been redesigned, re-priced and renamed.

CopyCentre products are affordable choices for customers who want
fast, reliable digital copiers. They are available in speeds ranging
from 16 ppm to 90 ppm and can be upgraded to a multifunction system -
as customers' needs change and grow. The new CopyCentre C32 and C40
color-capable copiers provide the most cost-effective color copying in
the industry. Users pay only for color on pages produced in color; the
rest are charged at standard black-and-white costs eliminating the
penalty typically associated with using color products to make
black-and-white pages.

WorkCentre products are cost-effective, basic multifunction devices,
providing copying and network printing with options for scanning,
faxing and e-mailing. Speeds range from 16 ppm to 55 ppm. These
products enable companies to consolidate equipment, save space and
energy, and increase office productivity.

WorkCentre Pro MFPs copy and print at speeds from 16 ppm to 90 ppm in
color and monochrome. They offer open architecture, advanced
networking, and easy integration with solutions from third-party
providers.

Rounding out Xerox's office product family are existing Phaser(R)
network printers, including solid ink color imaging technology which
maximizes speed and image quality while significantly reducing cost.

Partner Solutions Enhance MFPs

Xerox has worked closely with third-party partners to develop network
scanning, faxing and accounting solutions. More than a dozen updated
and new solutions were announced today. Among them, Omtool Ltd.'s
AccuRoute software, which works with the WorkCentre Pro to provide
secure network faxing and document transmission for legal markets
where privacy is paramount.

Other Premier Business Partners include Captaris Corp., Cardiff
Software Inc., Cobra Technologies, Control Systems Inc., Equitrac
Corporation, Kofax Image Products Inc., and ScanSoft Inc.

                                 -XXX-

For additional information about The Document Company Xerox, please
visit our Worldwide Web site at www.xerox.com/investor.

This release contains forward-looking statements and information
relating to Xerox that are based on our beliefs as well as assumptions
made by and information currently available to us. The words
"anticipate," "believe," "estimate," "expect," "intend," "will" and
similar expressions, as they relate to us, are intended to identify
forward-looking statements. Actual results could differ materially
from those projected in such forward-looking statements. Information
concerning certain factors that could cause actual results to differ
materially is included in the company's Form 10-K for the year ended
2002, as filed with the SEC.

XEROX(R), The Document Company(R) and the digital X(R) are trademarks
of XEROX CORPORATION.


James A. Ramsey                                          Cynthia B. Johnston
Director, Investor Relations                             Manager, Investor Relations
203-968-3807                                             203-968-3489
James.Ramsey@usa.xerox.com                               Cindy.Johnston@usa.xerox.com
Fax (203) 968-3944                                       Fax (203) 968-3944

   Short Name: Xerox Corp.
   Category Code: MSC
   Sequence Number: 00004445
   Time of Receipt (offset from UTC): 20030501T141544+0100

    --30--sm/uk*

    CONTACT: Xerox Corporation
             

    KEYWORD: UNITED KINGDOM INTERNATIONAL EUROPE
    INDUSTRY KEYWORD: COMPUTERS/ELECTRONICS HARDWARE PUBLISHING 
    SOURCE: Xerox Corporation

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