Xerox Corp.

Inkjet Technology, etc

Xerox Corp
14 March 2000

XEROX, SHARP, FUJI XEROX ATTACK SOHO PRINTING MARKET, 
REVEAL ADVANCED INKJET TECHNOLOGY AND $2 BILLION ALLIANCE

Global Leaders Join Forces to Serve SOHO Customers, Compete with HP

NEW YORK, March 14, 2000 - Xerox Corporation (NYSE:XRX), Sharp Corporation and
Fuji Xerox today revealed next-generation technology, fueled by a $2 billion
alliance, that will deliver faster, more affordable inkjet printing to millions
of small and home offices world-wide.

The combination of Xerox, Sharp and Fuji Xerox creates an unprecedented force to
challenge Hewlett-Packard and better serve customers in the exploding small
office/home office (SOHO) market.  Gearing up for double-digit marketshare,
Xerox, Sharp and Fuji Xerox will each launch a full line of low-cost inkjet
products.  The products will be available at more than 12,000 retail stores, Web
sites and other sales channels, maximizing the global distribution capacity of
the three companies.

This SOHO Printing Alliance leverages Xerox' strong brand and thermal inkjet
patents, Sharp's product development and manufacturing expertise, and Fuji
Xerox' technological know-how.

'Xerox, Sharp and Fuji Xerox together can accomplish what none of us could have
done alone.  Combined, we have the strength of a multibillion-dollar enterprise
that is unsurpassed in its ability to compete in the inkjet market,' said Rick
Thoman, Xerox president and CEO.  'Our commitment to SOHO customers will result
in dramatic growth through millions of inkjet unit placements and associated
supplies.'

'Sharp has been a pioneer in small office products for desktop and mobile
users,' said Katsuhiko Machida, president, Sharp.  'We are now extending our
highly successful 15-year partnership with Xerox, from personal copiers to
inkjet printers.'

Over the next five years, Xerox, Sharp and Fuji Xerox together will invest more
than $2 billion in inkjet research, development, manufacturing, advertising and
marketing.  The alliance also takes advantage of Xerox' massive cache of
intellectual property, including the third largest thermal inkjet patent
portfolio in the world.

Xerox estimates that inkjet products and supplies represent a $57 billion
worldwide market opportunity with a double digit annual growth rate.

Xerox, Sharp and Fuji Xerox have moved aggressively to ramp up inkjet
manufacturing, printhead and ink tank development.  New and expanded Xerox
facilities include state-of-the-art inkjet facilities in Dundalk, Ireland;
Canadaigua, N.Y>; and Manaus, Brazil.  Sharp has constructed a dedicated inkjet
product manufacturing and assembly center in Manila, Philippines.

Fast, High Quality Products For Small Offices

According to multinational market research Xerox conducted over the past year,
SOHO customers are calling for inkjet products with higher print quality,
increased speed and lower ownership costs.  This is especially true of more
experienced inkjet users.

At the center of the SOHO Printing Alliance is a competitively priced family of
inkjet products that is at least 50 percent faster than comparable products from
Hewlett-Packard and others, with up to 20 percent in ink savings.

The new products feature two major competitive advantages.  An additional
printing mode, called eXpress Mode TM, prints significantly faster than
competitors' normal mode with comparable output quality.  A unique Xerox
'bidirectional printing' design prints 1000 percent of the color ink in a single
pass.  Most other printers put down only half of the necessary ink on each of
two passes.

The products also feature InkLogic TM, an intelligent color ink system equipped
with four individual ink tanks.  Most inkjet printers have only one integrated
color ink tank.  InkLogic TM lowers costs by allowing users to replace only the
color that is empty.

In addition, the inkjet family features long-life printhead technology capable
of lasting up to 10,000 pages without replacement.  Most competitive models
require users to replace printheads about every 500 pages.

The SOHO Printing Alliance will result in a steady stream of inkjet products
based on a common technology platform.  As a result, Xerox, Sharp and Fuji Xerox
will be able to expand and refresh products at a quicker pace, introducing new
inkjet units and features about every six months.

Within the next few months, Xerox will begin launching personal inkjet printers,
copiers and multifunction machines in North America, Europe and developing
markets.  Sharp will offer its brand of inkjet products in those markets as well
as Japan and the Asia-Pacific region.  Fuji Xerox-branded products will be sold
in Japan and the Asia-Pacific region.

Xerox, Sharp, Fuji Xerox

The SOHO Printing Alliance is Xerox' second major move to capture growth in
general printing markets, following the company's $925 million acquisition of
the Tektronix printing business in January.  Both initiatives are managed by the
Xerox Channels Group within the company's General Markets Operations, a $6
billion enterprise charged with increasing growth by selling personal and
networked products through expanded distribution channels.  Xerox had $19.2
billion in revenue in 1999.

Sharp Corporation, a $14.5 billion company, is a worldwide developer of core
technologies that play an integral role in the new digital era.  As a leader in
liquid crystal displays (LCDs), optoelectronics, and semiconductors, Sharp
offers one of the broadest and most advanced lines of business solutions,
consumer electronics and electronic components.  For more information, visit
www.sharp.co.jp.

Fuji Xerox Co. Ltd., with $7.8 billion in revenue, is a 50-50 joint venture
between Fuji Photo Film and Xerox that develops, manufactures and markets office
equipment, software and solutions in Japan and the Pacific Rim.  It also
manufactures digital color copiers and printers and low-end printers for
worldwide distribution.  In cooperation with Xerox, Fuji Xerox'focus on research
and development has led to many breakthroughs and a large number of patents,
making it a global leader in technology.



For additional information about the Document Company Xerox, please visit our
Worldwide Web site at www.xerox.com/Investor.