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( BW)(XEROX)(BB63) Xerox Shipping Groundbreaking Digital Color
Press, Unveils New Solutions, Services for Printing Industry
    
    Business Editors
    UK REGULATORY NEWS

    CHICAGO--(BUSINESS WIRE)--Oct. 7, 2002--

               Installs of DocuColor iGen3 Begin in Six
            Major Markets; Customers Convene at Graph Expo

Delivering its most significant technology platform in a decade, Xerox
Corporation (NYSE:XRX) today announced the availability of its
groundbreaking DocuColor iGen3(TM) Digital Production Press effective
this month in six major markets across the United States and Europe.

The phased roll-out begins in Chicago, London, Los Angeles, New York,
Paris and Washington, D.C., followed by additional multinational
markets.

The company simultaneously unveiled a cadre of solutions and services
designed to drive growth in its high-end printing business, leapfrog
competitive offerings and help customers boost profits.

In a major exhibition at Graph Expo, North America's largest gathering
for the graphic arts industry, Xerox also showcased new on-demand book
publishing solutions and advanced software for its color and
black-and-white production printers.

"These offerings share one goal: to help commercial printers and
graphic arts service providers make more money," said Ursula M. Burns,
president, Xerox Document Systems and Solutions Group. "Graph Expo is
all about expanding Xerox's high-end digital printing leadership,
capturing new revenue streams and serving new market segments. We are
demonstrating our commitment to the graphic arts market and adding
momentum to Xerox's growth and transformation."

With U.S. list prices starting at $510,000 and color page costs as low
as 3.4 cents, the 100 page-per-minute DocuColor iGen3 is a color press
that provides unmatched print speed, image quality, cost-effectiveness
and paper-handling capabilities.

For the first time, iGen3 test site customers shared their experiences
and showed award-winning print jobs that rival the quality of
traditional offset printing.

"What impressed me is Xerox's ability and commitment to keep the
machine running while providing additional people-based services to
train, advise and support my business," said Roger Gimbel, president
of New York City-based Xerographic Reproduction Center, a division of
Global Document Solutions. "Xerox has a focus on volume-building
programs and solutions in such areas as one-to-one marketing and
digital books. It's way beyond what other vendors are doing."

John Place, president, Mercury Print Production, a large commercial
printer and on-demand book publisher in Rochester, N.Y., added, "The
quality is amazing. We can easily print colors that we couldn't print
on offset equipment. It has the best performance I've ever seen on
coated stocks with a digital press. I anticipate growing volume to at
least 700,000 prints per month."

Other Xerox announcements at Graph Expo included:

-- Software that prints customized print jobs and automatically mixes
color and black-and-white pages produced on different printers.

-- Two DocuTech solutions, including a first-of-its-kind booklet maker
that puts a square-fold edge on saddle-stitched booklets, providing
the look and feel of a perfect-bound book, for one quarter of the
price of traditional perfect binding.

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-Q for the quarter
ended June 30, 2002, as filed with the SEC.

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

   Short Name: Xerox Corp.
   Category Code: MSC
   Sequence Number: 00000910
   Time of Receipt (offset from UTC): 20021007T132334+0100

    --30--jgm/in*

    CONTACT: Xerox
             James A. Ramsey, 203/968-3807
             James.Ramsey@usa.xerox.com
             Fax 203/968-3944
             Cynthia B. Johnston, 203/968-3489
             Cindy.Johnston@usa.xerox.com   
             Fax 203/968-3944

    KEYWORD: ILLINOIS CONNECTICUT UNITED KINGDOM INTERNATIONAL EUROPE
    INDUSTRY KEYWORD: COMPUTERS/ELECTRONICS HARDWARE PRODUCT 
    SOURCE: Xerox Corp.


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