Xerox Corporation
October 18, 2005

XEROX ADOPTS A PRECAUTIONARY GOAL: WASTE-FREE PRODUCTS

Rachel's summary:  The Xerox corporation has set a new goal: waste-free
products from waste-free facilities

Xerox Reports on Environment, Health and Safety Success; 'Waste-Free
Products' Vision Helps Customers Meet Their Environmental Objectives

ROCHESTER, N.Y.-- Business Wire -- Spotlighting the company's
environmentally-friendly product portfolio as well as its ongoing
efforts to deliver "waste-free products from waste-free facilities,"
Xerox Corporation (NYSE: XRX) today released its 2005 Environment,
Health and Safety Progress Report (3 megabytes, PDF), which details
the year's accomplishments, new initiatives and continuing challenges.

"Sustainable operations is a demanding goal but one that will
ultimately more than repay our efforts. We have demonstrated that you
actually can save money by investing in environmentally sound
technologies and business practices," said Patricia A. Calkins, Xerox
vice president of Environment, Health and Safety. "Sustainable
strategies also ensure that Xerox products answer the environmental
expectations of customers, from large federal agencies to small
family-owned businesses."

Xerox's environmental program embraces the entire product life cycle,
from selecting raw materials to integrating product features that help
people work wisely in small offices, large enterprises and commercial
print operations worldwide. It includes sourcing paper from
environmentally sound suppliers, designing equipment with parts and
subsystems that can be reused, and eliminating hazardous substances in
products.

In addition, Xerox products are designed to help customers meet their
own sustainability objectives. For example, equipment is energy-
efficient and includes features for automatic two-sided printing to
conserve paper. Toner cartridges and other supplies are designed for
recycling. And Xerox-exclusive technologies such as solid ink generate
95 percent less consumables waste than comparable laser printers.

Notable new products include the WorkCentre(R) C2424, Xerox's first
office color multifunction system to bring customers the benefits of
solid ink, and Xerox Nuvera(TM) digital production systems with
innovative technologies that make machine components last longer and
scan pages with low-power, mercury-free lamps. Xerox's Premium Laser
paper was among the papers redesigned to add 30 percent recycled
content.

Xerox is moving forward on a number of important goals, Calkins said,
including Xerox's pledge announced earlier this year to reduce
absolute greenhouse gas emissions by 10 percent from 2002 to 2012, its
program to achieve benchmark safety levels, and its initiative to
further control chemicals used in Xerox products. Among the highlights
in the report:

-- Ninety-seven percent of eligible new Xerox products met the
requirements of the international ENERGY STAR(R) and Canada's
Environmental Choice. By selling ENERGY STAR products and reusing
parts in Xerox remanufacturing operations, the company enabled energy
savings equivalent to 1.4 million megawatt hours of electricity in
2004, enough to light about 1.1 million U.S. homes for a year.

-- Improvements in energy efficiency enabled Xerox to reduce its
greenhouse gas emissions by nearly 6 percent between 2002 and 2004,
while energy consumption decreased by 3 percent.

-- All new products achieved Xerox's rigorous standards for minimal
use of hazardous materials and noise, ozone and dust emissions.

-- In 2005, the company launched its first office products -- such as
the WorkCentre M118/M118i basic multifunction systems -- designed to
meet the requirements of the European Union's restriction on the use
of hazardous substances, which takes effect in July 2006. Xerox
engineers continue to innovate to ensure Xerox products meet the E.U.
directive, called RoHS.

-- Reuse and recycling of Xerox equipment and supplies in 2004 kept
142 million pounds of material from entering landfills -- the
approximate weight of 8,600 African elephants. Over the past 15 years,
this program has given new life to the equivalent of 2.5 million
copiers, printers and multifunction systems.

-- Ninety-six percent of returned parts ineligible for reuse were
successfully recycled by Xerox's worldwide equipment recovery and
recycle operations.

-- Xerox workplace injury rates are 54 percent lower than when the
company's Zero Injury program began in 1997, yet they fell short of
Xerox's goal of a 10 percent year-over-year reduction. The company has
launched a Lean Six Sigma project to identify strategies to reach its
goal.

Xerox is committed to the protection of the environment and the health
and safety of its employees, customers and neighbors. The company has
received major environmental awards worldwide, and it has pioneered
conservation and protective environmental policies well in advance of
governmental regulations. As part of its legacy as a leader in
corporate citizenship, Xerox recently joined the Business Roundtable's
new "S.E.E. Change" initiative, which calls for corporations to adopt
or strengthen business strategies that support sustainable growth.

The 11th annual Progress Report is available here.

NOTE TO EDITORS: For more information about Xerox and to receive its
RSS news feeds, visit www.xerox.com/news. XEROX(R), WorkCentre(R) and
Xerox Nuvera(TM) are trademarks of XEROX CORPORATION. ENERGY STAR and
the ENERGY STAR mark are registered U.S. marks.

Contacts

Xerox Corporation
Kara Choquette, 303-796-6420
kara.choquette@xerox.com
Bill McKee, 585-423-4476
bill.mckee@xerox.com

At A Glance

Xerox Corporation

Headquarters: Stamford, Conn.
Website: http://www.xerox.com
CEO: Anne Mulcahy
Employees: 58,100
Ticker: XRX (NYSE)
Revenues: $15.7 billion (2004)
Net Income: $859 million (2004)

Copyright Business Wire 2005