Focus on Innovation at Xerox Produces More Than 500 Patents in 2004, Provides Sound Foundation for Future Growth

STAMFORD, Conn. -- 1/13/2005 -- Xerox Corporation’s (NYSE: XRX) research and development investment continued to pay off in 2004, adding 520 U.S. utility patents in areas as diverse as mobile document imaging, color print reproduction, management of print shops, and advanced materials that can improve the performance of printers and copiers.


This unflagging commitment to innovation fueled by the brainpower of Xerox scientists and engineers has netted more than 16,000 patents since Xerox was founded and is the launch pad for future growth.

"These patents typify the creative brilliance that’s enriching existing products, developing next-generation product platforms, and exploring potentially disruptive technologies for new growth opportunities. The innovations they represent are at the heart of Xerox’s future success; they are the way Xerox creates shareholder value" said Herve Gallaire, chief technology officer and president, Xerox Innovation Group.

Gallaire noted that Xerox introduced 40 new products in 2004. Through the third quarter of last year, about two-thirds of the company’s equipment sales were generated from products launched in the last two years. "Our intellectual property process identifies ideas that will spawn the coming waves of document services and technologies - ones that our customers can ride to new levels of productivity" he added.

Xerox provides unmatched expertise in document systems, services and solutions. Its research helps customers in workplaces and commercial-printing environments increase the intelligence, quality and productivity of their documents and work processes and build new businesses. Much Xerox research is tightly coordinated with business units; the remainder is aimed at developing future opportunities both in its core business and in related areas of expertise.

Xerox was awarded a number of strategic patents in 2004 that strengthen its intellectual property portfolio. Included were patents in the areas of capturing and converting documents from hardcopy to digital form using a mobile phone or phone camera; streamlining production printing shop operations to become more productive; and achieving even more accurate color reproduction from one printer to the next.

Other key patents include ones that help make printer parts like photoreceptors last longer; belt coatings that improve product performance; and a flexible and efficient way to compress and decompress digital documents that allows print professionals to produce high-resolution color prints with fully personalized content and images at speeds of 100 pages per minute.

In addition to the patents granted to Xerox last year, its joint-venture partner in Japan, Fuji Xerox Co. Ltd., was awarded 202 patents, raising the overall patent total for the Xerox Group to 717. (Because the two companies’ research is strategically coordinated, the group total includes five jointly held patents where Xerox Corporation and Fuji Xerox worked together on research.) The combined total ranks the Xerox Group among the top 25 U.S. patent winners in 2004. With more than 16,000 U.S. patents granted since the company’s founding, Xerox is one of the country’s most prolific generators of inventions.

Xerox Corporation operates research and technology centers in the United States, Canada and Europe that conduct work in color science, computing, digital imaging, work practices, electromechanical systems, novel materials and other disciplines connected to Xerox’s expertise in printing and document management. The company consistently builds its inventions into business by embedding them in Xerox products and solutions, using them as the foundation of new businesses, or licensing or selling them to other entities.

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For more information on Xerox innovation activities, visit www.xerox.com/innovation.

NOTE TO EDITORS: For details on some of the key patents and for more information on Xerox, visit www.xerox.com/news. XEROX(R) is a trademark of XEROX CORPORATION.

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Bill McKee

Media Contact

Xerox Corporation

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