*NEWS*GRAND IDEAS PAYS-OFF FOR XEROX

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Date: Monday July 10, 2006 10:42:00 am
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    Grand ideas pay off for Xerox Canadian R&D Centre
    Xerox Research Centre of Canada achieves 1,000th patent
    MISSISSAUGA,
    ON, JULY 06 – The Xerox Research Centre of Canada(XRCC) today announced
    it has been awarded its 1,000th U.S. patent, surpassinga key milestone
    in the facility’s 30+ year record of innovation responsiblefor piquing
    the interest of, amongst others, the Canadian federal andprovincial
    governments and global research community.With only 120 scientists,
    XRCC has generated approximately 160potentially commercial technology
    ideas every year in the past several years,working at breakneck speed
    to pursue almost four novel scientific ideas perweek. This has resulted
    in 40-60 patents on average per year. “Achieving our 1,000th patent is
    testament to the innovative prowess andproductivity of XRCC people,”
    says Hadi Mahabadi, Xerox vice president anddirector of the Centre. “It
    emphasizes that building a research facility in alocation rich with
    creative talent, a diversity of cultures and knowledge, anda
    multi-disciplinary scientific focus is a recipe for innovation
    success.”XRCC’s reputation for turning fundamental research concept
    into tangible,commercial product or service innovations has led to the
    heightened visibilityof the centre and recent visits by key government
    officials. These includeArthur Carty, national science advisor to the
    prime minister, who sought toidentify where Canadian industry in
    general might learn from XRCC on how tofoster innovation at a similar
    pace.Today XRCC continues its mandate of developing imaging and
    consumablematerials for Xerox globally – the same work that won XRCC
    the 2005 Innovationand Leadership Award for Best Emerging Technology
    from the CATAAlliance. Thiswas for the development of Emulsion
    Aggregation (EA) Toner technology — ascientific breakthrough based on
    nanotechnology that now is the core ofXerox’s products — which enables
    significantly less toner usage and is madeusing a more organic,
    environmentally-friendly process than traditionalmethods.XRCC
    researchers have also been instrumental in designing key
    proprietarymaterials and production processes that have enabled Xerox
    products to achievemarket leadership. Among XRCC’s many innovations are
    the photoreceptor pigmentand toner resin for the iGen3 Digital
    Production Press.U.S. patent number 6,985,690 for “Fuser and Fixing
    Members Containing  PEI-PDMS Block Copolymers” is the 1,000th patent
    awarded to XRCC scientistssince the lab received its first patent in
    1979. Says Mahabadi about the mostrecent patent: “This invention is
    part of the portfolio of patents thatfurther enhance print image
    quality and fuser cost-effectiveness, both indirect response to Xerox
    customer needs. And, as proud as we are to have 1,000patents under our
    collective belt, everyone at XRCC is focused on the futureinventions
    that will underwrite Xerox’s technology leadership in the year
    tocome.”XRCC is one of five research and technology centres Xerox
    Corporationoperates in the United States, Canada, and Europe that
    conduct work in colourscience, computing, digital imaging, work
    practices, electromechanicalsystems, novel materials and other
    disciplines connected to Xerox’s expertisein printing and document
    management. The company consistently reaps financialreturns on the
    innovations embedded in superior Xerox products and solutions,using
    them as the foundation of new businesses, or licensing or selling
    themto other entities.

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