Xerox Chairman to Shareholders: Affordable Technology, Document Services Help Businesses Reduce Costs; Deliver Value for Customers and for Xerox

At its annual shareholders meeting held here today, Anne M. Mulcahy, chairman and CEO of Xerox Corporation (NYSE: XRX), and Xerox president Ursula M. Burns outlined strategic steps the company is taking to mitigate economic challenges while positioning Xerox for long-term growth through its industry-leading document technology and services.

The shareholders meeting followed an announcement this morning that Mulcahy is retiring as CEO of Xerox effective July 1, and that Burns was named by the board of directors as her successor. Mulcahy will continue as chairman.

In her address to shareholders, Mulcahy said, "Customers are relying on Xerox now more than ever to be a trusted business partner – not just a vendor. We are successfully answering the call with affordable, breakthrough color technology; document services that take costs out of doing business; and more distribution channels to companies of all sizes.”

During a review of the company’s operations, Mulcahy noted that Xerox is on track to deliver $550 million in cost reductions this year to help minimize the impact of the recession, and expects to generate $1.3 billion this year in cash from operations. Added Burns, "We are neither giving up on 2009 nor mortgaging our future by foregoing investments that will give us momentum as the economy improves.”

Burns updated shareholders on several strategic initiatives including color leadership, document management services, digital production printing, and expanding its presence in the small and mid-size business (SMB) market. Examples of Xerox’s progress in these areas include:

• Launched the world’s first high-speed solid ink multifunction printer, which cuts the cost of color pages by up to 62 percent compared to traditional color lasers - without compromising print quality. The Xerox ColorQube™ 9200 Series multifunction printer uses Xerox’s proprietary solid ink technology to lower the environmental impact of office printing. The cartridge-free design generates 90 percent less supplies waste and reduces the effects of manufacturing and transportation on the environment.
• Increased the number of pages printed on Xerox color systems by 24 percent last year –significantly higher than the competition. According to InfoTrends, a leading independent research firm, Xerox's DocuColor® and iGen presses accounted for approximately half of the total worldwide color pages printed by high-speed digital systems.
• Strengthened Xerox’s penetration in the SMB marketplace by acquiring 10 office technology dealers in the last two years and launching 18 products designed exclusively for SMBs in 2008.
• Built partnerships with IT services companies like CSC and HCL Technologies to integrate Xerox’s document management strengths with their IT services expertise and experience.

Also at the annual meeting, shareholders elected by an overwhelming majority vote 10 members of the Xerox board of directors. Re-elected to the board are Glenn A. Britt, Ursula M. Burns, Richard J. Harrington, William Curt Hunter, Robert A. McDonald, Anne M. Mulcahy, N.J. Nicholas, Jr., Charles Prince, Ann N. Reese and Mary Agnes Wilderotter.

Shareholders also approved the selection of PricewaterhouseCoopers LLP as the company’s independent registered public accounting firm for 2009.

This release contains "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. The words "anticipate,” "believe,” "estimate,” "expect,” "intend,” "will,” "should” and similar expressions, as they relate to us, are intended to identify forward-looking statements. These statements reflect management’s current beliefs, assumptions and expectations and are subject to a number of factors that may cause actual results to differ materially. These factors include but are not limited to: the unprecedented volatility in the global economy; the risk that unexpected costs will be incurred; the outcome of litigation and regulatory proceedings to which we may be a party; actions of competitors; changes and developments affecting our industry; quarterly or cyclical variations in financial results; development of new products and services; interest rates and cost of borrowing; our ability to protect our intellectual property rights; our ability to maintain and improve cost efficiency of operations, including savings from restructuring actions; changes in foreign currency exchange rates; changes in economic conditions, political conditions, trade protection measures, licensing requirements and tax matters in the foreign countries in which we do business; reliance on third parties for manufacturing of products and provision of services; and other factors that are set forth in the "Risk Factors” section, the "Legal Proceedings” section, the "Management’s Discussion and Analysis of Financial Condition and Results of Operations” section and other sections of our 2008 Annual Report on Form 10-K and Quarterly Report on Form 10-Q for the quarter ended March 31, 2009 filed with the Securities and Exchange Commission. The Company assumes no obligation to update any forward-looking statements as a result of new information or future events or developments, except as required by law.

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