Xerox has announced the completion of its acquisition of Tektronix's Colour Printing and Imaging Division for $925 million. This was a reduction of $25 million from the original purchase price due to various balance sheet adjustments. Xerox simultaneously launched a newly formed Office Printing Business (OPB) that merges both companies' technology, marketing creativity and distribution channels.

With Tektronix' industry-leading colour printer line in hand, Xerox claims to command a market share position second only to HP in the global office colour printing market. The Tektronix colour portfolio complements Xerox' growing family of monochrome network printers to create a full line of office printing products available through more than 16 000 resellers worldwide.

"We have taken the strength of the Xerox brand and fortified it with Tektronix' product line and distribution capacity - creating an office printing powerhouse that no one can match," said Rick Thoman, Xerox President and CEO. "Xerox now owns the building blocks for high growth and success in this exploding market."

Aggressive integration actions are under way. Specifically, Xerox will:

* Launch several new colour and monochrome network printers with significant competitive advantages throughout the year.

* Extend Xerox' three-year 'Total Satisfaction Guarantee' to all eligible new Xerox and Tektronix printers resulting from the acquisition.

* Share technology across research and development groups. Xerox gains more than 430 Tektronix CPID patents in solid-ink and imaging science.

* Develop a multimillion-dollar worldwide advertising campaign and initiate a joint process for sharing customer leads and bids.

* Support and expand creative marketing programs such as Tektronix' FreeColorPrinters.com and Xerox' end-user leasing program.

* Offer the most favourable margins, incentives and rebates to top partners by merging the best of each company's premier reseller program.

* Host combined customer and reseller summits worldwide.

Gerry Perkel, former president of Tektronix CPID, becomes President of the Xerox Office Printing Business. The new unit has about 3000 employees worldwide. The Xerox Office Printing Business serves the fast-growing market for colour and monochrome printing from the networked office to the graphic arts environment. OPB develops and markets the combined Xerox and Tektronix family of network printers. OPB also manages associated channels of distribution including resellers and distributors worldwide.

Xerox

(011) 928 9353

juliet.hanson@zaf.xerox.com

www.xerox.com