*NEWS*XEROX A MAJOR PRESENCE IN JAPAN

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Date: Saturday March 5, 2005 10:36:00 am
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    Xerox A Major Presence in Japan’s TransacTional Market

    24 Xerox iGen3 Digital Presses to Provide Full-Color, Customized
    Statements for Sumitomo Mitsui’s Credit Cardholders in Japan.

    TOKYO & STAMFORD, CT, MARCH 2005 – Sumitomo Mitsui Card Co. Ltd., one of
    Japan’s leading credit-card firms and the pioneer in issuing the Visa Card in
    Japan, unveiled a new service in which millions of full-color, personalized
    credit-card statements will be printed on-demand on 24 Xerox Corporation (NYSE:
    XRX) iGen3® Digital Production Presses.


    Fuji Xerox Co. Ltd. has partnered with JAIS Ltd., a wholly owned
    subsidiary of the Japan Research Institute Ltd., to create an innovative digital
    printing solution with the installation of the 24 Xerox iGen3’s. A new printing
    center has been created in Osaka with the digital color presses for full-scale
    entry in the digital printing service market. JAIS hopes to expand its business
    operation by further boosting its print-on-demand business.

    Fuji Xerox is a 25/75 joint venture with Xerox Corporation and Fuji Photo
    Film Co. Ltd., and it markets the Xerox brand in Japan, the Pacific Rim and most
    of Asia.

    Personalized Printing to Begin March 28
    Sumitomo Mitsui Card was
    first in Japan to issue the Visa Card, and it has more than 13 million members.
    The new service enabled by the Xerox iGen3 will provide the latest information
    on products and services tailored to the individual needs of each cardholder
    based on information such as gender, address and past credit-card usage. The
    service is scheduled to start with statements issued on March 28.

    Full-color printing enables sophisticated color images and text to be
    printed, enhancing the visibility and recognition of information for each
    member. Photos and color illustrations introducing information such as locations
    of Sumitomo Mitsui Card member stores or premium gifts in exchange for card
    points will add visual appeal as well as value-added information to card
    statements.

    Marketing to Emphasize Customer Relationship
    Sumitomo Mitsui Card
    plans to conduct enhanced one-to-one marketing built on customer information
    analysis; for example, providing a shop’s sale information to an office worker
    who often uses the card in boutiques or providing golf course information to
    someone who often goes golfing on weekends. With a finer segmentation and
    information offering, Sumitomo Mitsui Card aims to strengthen its relationship
    with members and enhance customer satisfaction.

    Fuji Xerox is promoting its production services business offering digital
    printing system equipment and services along with its office equipment and
    printer businesses.

    The 100-pages-per-minute iGen3 press is Xerox’s flagship production product,
    providing a digital complement to traditional offset printing. The ability of
    the iGen3 press to create personalized, short-run, high-quality color
    applications is creating new business opportunities for customers, who on
    average print more than 400,000 pages per month on their iGen3 systems. So far
    more than 30 customers have now printed 1 million pages or more on a single
    iGen3 press in a given month, running jobs as diverse as customized financial
    statements, travel itineraries and direct-marketing campaigns.

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