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ATTACHMENTS BELOW!!!

Xerox Hits Fast-Growing 'Light Production' Market With New Economical Copying/Printing System

Xerox 2101 Offers Advanced Features, Reliability at Competitive Price

ROCHESTER, N.Y., Aug. 19, 2003 -- Xerox Corporation (NYSE: XRX) has introduced its newest "light production" copier/printer, targeting the fastest-growing segment of the black-and-white print-on-demand market and offering more capabilities at no extra cost to offices and print shops.
The new Xerox 2101 Digital Copier/Printer delivers high reliability and advanced features - but costs about the same as competitive models with fewer features.

The system prints or copies as many as 101 pages per minute (ppm) and addresses the growing need for advanced finishing, printing, copying and network scanning capabilities in high-volume office environments and low- to medium-volume print shops.

"The Xerox 2101 builds on our highly successful Xerox 1010 Copier/Printer and provides even greater finishing flexibility and even more powerful production-level features," said Mark Waxenberg, vice president and general manager, Xerox Production Solutions Business Unit. "Our competitors simply cannot match the Xerox 2101's high reliability and benchmark light-production productivity, backed by our leadership knowledge of industry and application requirements."

According to Gartner Dataquest, a leading industry research firm, sales of digital copiers rated at speeds of 91 ppm and faster are expected to grow at an 11 percent compound annual growth rate from 2002 to 2007 - making it the fastest-growing market segment in the digital monochrome marketplace.*

Xerox research shows that users of light-production devices increasingly produce integrated color and black-and-white documents and require fast turnarounds and a variety of automated finishing options in a solution that is easy to use. The Xerox 2101's advanced feature set addresses these trends for entry-level print-on-demand.

The standard 175-sheet interposer (in-line page inserter) helps people who create documents such as a report with black-and-white pages but also want a color cover or some color pages. The interposer can automatically integrate black-and-white and color pages - including pre-printed color covers and inserts - into one document, so workers don't have to collate pages by hand.

The standard 100-sheet stapler has a three-position single- or dual-stapling capability and a hole-punching feature, providing automated finishing for professionally finished reports and catalogs. An optional booklet maker finisher can impose, print and saddle stitch booklets with as many as 15 pages. An optional folding unit provides C-folds and Z-folds for either finishing device.

For additional integration with color documents, the Xerox 2101 is the only product in its class with a scanner that scans in black-and-white or full-color mode. The scanner can save documents as industry-standard TIFF or PDF files to a network file server or client, to an e-mail address, or on the Xerox 2101 copy server for convenient print on demand. Documents can be scanned and shared with as many as six other Xerox 2101's on the network via Internet Protocol (IP) address for workload balancing.

Network printing is highly productive with a powerful Fiery X5/EX2101 controller from Electronics for Imaging, Inc. The controller is compatible with the optional EFI Velocity solution for advanced workflow controls such as job splitting among multiple printers and splitting of color and black-only pages. Image quality remains consistent on long runs, especially on graphics.

With easy-to-use screens, the Xerox 2101 makes it simple for all users to walk up and make copies and use all the copier/printer's features. The system includes an enhanced copy server, which permits as many as 240 print jobs and 6,000 pages to be scanned to a 60-gigabyte hard drive for storage, retrieval and editing. For enhanced productivity and improved turnaround time, scanned images can be viewed on the user interface to simplify job editing and management. The attributes of stored jobs also can be reprogrammed at the user interface. As many as 10 jobs can be scanned ahead for unattended printing.

The Xerox 2101 has a paper capacity of 6,055 sheets ranging from 16-pound bond paper (60 gsm) to 80-pound cover stock (220 gsm) and tab stock. It prints and scans at up to 600 by 600 dots per inch resolution. The recommended print volume is 60,000 to 350,000 impressions per month. The duty cycle is rated at 600,000 impressions per month. The Xerox 2101 is backed by the benchmark Xerox Customer Satisfaction Guarantee.

The Xerox 2101 Digital Copier/Printer is available immediately in Canada, Europe and the United States. The U.S. manufacturer's list price is $56,550 for the copier-only version and $65,050 for the copier/printer.

Options include a high-capacity feeder, $2,700; the booklet maker, $11,800; and the folder, $5,700. Sales, service and leasing are offered through the Xerox direct sales force and authorized sales agents.

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