Xerox Reports First-Quarter 2013 Earnings

  Xerox Reports First-Quarter 2013 Earnings

  *Q1 GAAP earnings per share of 23 cents; adjusted EPS of 27 cents
  *Revenue of $5.4 billion down 3 percent
  *Reiterated 2013 full-year earnings expectations

Business Wire

NORWALK, Conn. -- April 23, 2013

Xerox (NYSE: XRX) announced today first-quarter 2013 adjusted earnings per
share of 27 cents, which includes a 2-cent benefit from a reserve reduction
related to recent litigation developments. Adjusted EPS excludes 4 cents
related to amortization of intangibles, resulting in GAAP EPS of 23 cents.

In the first quarter, total revenue of $5.4 billion was down 3 percent.
Revenue from the company’s services business was up 4 percent and represents
55 percent of total revenue.

“We delivered solid revenue growth in our services business along with a
stable segment margin and a 64 percent increase in the total contract value of
signings to $3.7 billion,” said Ursula Burns, Xerox chairman and chief
executive officer.

“While results in our services business align with our growth strategy and our
expectations, challenges in our document technology business continued during
the first quarter,” she added. Revenue from the company’s document technology
business, representing 40 percent of total revenue, was down 9 percent, which
had an adverse impact on segment margin as market conditions and the timing of
a recent product platform launch put pressure on the sale of document systems,
supplies and related services. In February, Xerox announced ConnectKey^TM, a
software system embedded in 16 new Xerox multifunction printers, many of which
began shipping in the second quarter.

“We’re continuing to shift our business model to adapt to market trends by
expanding indirect distribution and streamlining our supply chain and product
portfolio,” said Burns. “These changes, along with implementing broader
operational improvements across the company, will result in increased margins
that will help us scale profitable revenue in services while maintaining
strong market share in document technology.”

First-quarter operating margin declined 1.1 points to 7.4 percent. Gross
margin was 30 percent, and selling, administrative and general expenses were
19.7 percent of revenue.

The company used $87 million in operating cash during the first quarter, in
line with cash flow seasonality and reflecting an increase in inventory
related to new product launches.

For second-quarter 2013, Xerox expects GAAP earnings of 19 to 21 cents per
share and adjusted EPS of 23 to 25 cents per share. The company plans a higher
level of restructuring activities in the second quarter, and has included 2
cents of restructuring in its guidance.

Expected first-half results will keep Xerox on track to meet its full-year
2013 guidance for GAAP earnings per share in the range of 94 cents to $1.00,
and adjusted EPS of $1.09 to $1.15. The company also reiterated expectations
to generate operating cash flow of $2.1 billion to $2.4 billion in 2013.

About Xerox

With sales approaching $23 billion, Xerox (NYSE: XRX) is the world’s leading
enterprise for business process and document management. Its technology,
expertise and services enable workplaces – from small businesses to large
global enterprises – to simplify the way work gets done so they operate more
effectively and focus more on what matters most: their real business.
Headquartered in Norwalk, Conn., Xerox offers business process outsourcing and
IT outsourcing services, including data processing, healthcare solutions, HR
benefits management, finance support, transportation solutions, and customer
relationship management services for commercial and government organizations
worldwide. The company also provides extensive leading-edge document
technology, services, software and genuine Xerox supplies for graphic
communication and office printing environments of any size. The 140,000 people
of Xerox serve clients in more than 160 countries. For more information, visit
http://www.xerox.com, http://news.xerox.com or http://www.realbusiness.com.
For investor information, visit http://www.xerox.com/investor.

Non- GAAP Measures:

This release refers to the following non-GAAP financial measures:

  *Adjusted EPS (earnings per share) for the first-quarter 2013 as well as
    for the second-quarter and full-year 2013 guidance that excludes certain
    items.
  *Operating margin for the first-quarter 2013 that excludes certain
    expenses.

Refer to the “Non-GAAP Financial Measures” section of this release for a
discussion of these non-GAAP measures and their reconciliation to the reported
GAAP measure.

Forward-Looking Statements

This release contains "forward-looking statements" as defined in the Private
Securities Litigation Reform Act of 1995. The words “anticipate,” “believe,”
“estimate,” “expect,” “intend,” “will,” “should” and similar expressions, as
they relate to us, are intended to identify forward-looking statements. These
statements reflect management’s current beliefs, assumptions and expectations
and are subject to a number of factors that may cause actual results to differ
materially. These factors include but are not limited to: changes in economic
conditions, political conditions, trade protection measures, licensing
requirements and tax matters in the United States and in the foreign countries
in which we do business; changes in foreign currency exchange rates; actions
of competitors; our ability to obtain adequate pricing for our products and
services and to maintain and improve cost efficiency of operations, including
savings from restructuring actions; the risk that unexpected costs will be
incurred; the risk that subcontractors, software vendors and utility and
network providers will not perform in a timely, quality manner; our ability to
recover capital investments; the risk that multi-year contracts with
governmental entities could be terminated prior to the end of the contract
term; the risk that our Services business could be adversely affected if we
are unsuccessful in managing the ramp-up of new contracts; development of new
products and services; our ability to protect our intellectual property
rights; our ability to expand equipment placements; the risk that individually
identifiable information of customers, clients and employees could be
inadvertently disclosed or disclosed as a result of a breach of our security;
interest rates, cost of borrowing and access to credit markets; reliance on
third parties for manufacturing of products and provision of services; our
ability to drive the expanded use of color in printing and copying; the
outcome of litigation and regulatory proceedings to which we may be a party;
and other factors that are set forth in the “Risk Factors” section, the “Legal
Proceedings” section, the “Management’s Discussion and Analysis of Financial
Condition and Results of Operations” section and other sections of our 2012
Annual Report on Form 10-K filed with the Securities and Exchange Commission.
The Company assumes no obligation to update any forward-looking statements as
a result of new information or future events or developments, except as
required by law.

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XEROX^®, XEROX and Design^®, and ConnectKey^TM are trademarks of Xerox in the
United States and/or other countries.


Xerox Corporation

Condensed Consolidated Statements of Income (Unaudited)
                                                         
                                       Three Months
                                       Ended March 31,
(in millions, except per-share         2013       2012         % Change 
data)
                                                                   
Revenues
   Sales                               $ 1,446       $ 1,588       (9       %)
   Outsourcing, maintenance and          3,793         3,767       1        %
   rentals
   Financing                            117         148         (21      %)
Total Revenues                          5,356       5,503       (3       %)
                                                                   
Costs and Expenses
   Cost of sales                         948           1,052       (10      %)
   Cost of outsourcing,                  2,758         2,690       3        %
   maintenance and rentals
   Cost of financing                     43            53          (19      %)
   Research, development and             154           173         (11      %)
   engineering expenses
   Selling, administrative and           1,057         1,068       (1       %)
   general expenses
   Restructuring and asset               (7    )       17          *
   impairment charges
   Amortization of intangible            83            82          1        %
   assets
   Other expenses, net                  15          55          (73      %)
Total Costs and Expenses                5,051       5,190       (3       %)
                                                                   
Income before Income Taxes &             305           313         (3       %)
Equity Income^(1)
   Income tax expense                    52            77          (32      %)
   Equity in net income of              47          40          18       %
   unconsolidated affiliates
                                                                   
Net Income                               300           276         9        %
                                                                   
   Less: Net income attributable        4           7           (43      %)
   to noncontrolling interests
                                                                   
Net Income Attributable to Xerox       $ 296        $ 269         10       %
                                                                   
Basic Earnings per Share               $ 0.24        $ 0.20        20       %
Diluted Earnings per Share             $ 0.23        $ 0.19        21       %
                                                                   
* Percent change not meaningful.
                                                                   
^(1) Referred to as "Pre-Tax Income" throughout the remainder of this
document.



XEROX CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)
                                                                 
                                                                      
                                                           Three Months Ended
                                                           March 31,
(in millions)                                               2013     2012 
                                                                      
Net Income                                                 $ 300      $ 276
  Less: Net income attributable to noncontrolling           4        7    
  interests
Net Income Attributable to Xerox                           $ 296     $ 269  
                                                                      
Other Comprehensive (Loss) Income, Net:
  Translation adjustments, net                             $ (363 )   $ 160
  Unrealized losses, net                                     (8   )     (43  )
  Changes in defined benefit plans, net                     103      (54  )
Other Comprehensive (Loss) Income, Net                       (268 )     63
  Less: Other comprehensive income, net attributable to     -        1    
  noncontrolling interests
Other Comprehensive (Loss) Income, Net Attributable to     $ (268 )   $ 62   
Xerox
                                                                      
Comprehensive Income, Net                                  $ 32       $ 339
  Less: Comprehensive income, net attributable to           4        8    
  noncontrolling interests
Comprehensive Income, Net Attributable to Xerox            $ 28      $ 331  
                                                                             

                                                         
Xerox Corporation

Condensed Consolidated Balance Sheets (Unaudited)
                                                                 
                                             March 31,           December 31,
(in millions, except share data in        2013              2012      
thousands)
Assets
Cash and cash equivalents                    $ 993               $ 1,246
Accounts receivable, net                       3,065               2,866
Billed portion of finance                      150                 152
receivables, net
Finance receivables, net                       1,741               1,836
Inventories                                    1,096               1,011
Other current assets                          1,215             1,162     
Total current assets                           8,260               8,273
Finance receivables due after one              3,213               3,325
year, net
Equipment on operating leases, net             520                 535
Land, buildings and equipment, net             1,523               1,556
Investments in affiliates, at equity           1,332               1,381
Intangible assets, net                         2,724               2,783
Goodwill                                       8,993               9,062
Deferred tax assets, long-term                 697                 763
Other long-term assets                        2,303             2,337     
Total Assets                                 $ 29,565           $ 30,015    
                                                                 
Liabilities and Equity
Short-term debt and current portion          $ 1,107             $ 1,042
of long-term debt
Accounts payable                               1,656               1,913
Accrued compensation and benefits              786                 741
costs
Unearned income                                448                 438
Other current liabilities                     1,630             1,776     
Total current liabilities                      5,627               5,910
Long-term debt                                 7,432               7,447
Pension and other benefit                      2,876               2,958
liabilities
Post-retirement medical benefits               894                 909
Other long-term liabilities                   741               778       
Total Liabilities                             17,570            18,002    
                                                                 
Series A Convertible Preferred Stock          349               349       
                                                                 
Common stock                                   1,228               1,239
Additional paid-in capital                     5,560               5,622
Treasury stock, at cost                        -                   (104      )
Retained earnings                              8,208               7,991
Accumulated other comprehensive loss          (3,495    )        (3,227    )
Xerox shareholders' equity                     11,501              11,521
Noncontrolling interests                      145               143       
Total Equity                                  11,646            11,664    
Total Liabilities and Equity                 $ 29,565           $ 30,015    
                                                                 
Shares of common stock issued                  1,227,903           1,238,696
Treasury stock                                -                 (14,924   )
Shares of common stock outstanding            1,227,903         1,223,772 
                                                                             


XEROX CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
                                                             
                                                                     
                                                     Three Months Ended
                                                     March 31,    March 31,
(in millions)                                        2013          2012  
                                                                     
Cash Flows from Operating Activities:
Net income                                           $ 300           $ 276
Adjustments required to reconcile net income
to cash flows from operating activities:
       Depreciation and amortization                   329             313
       Provision for receivables                       26              27
       Provision for inventory                         9               10
       Undistributed equity in net income of           (47   )         (31   )
       unconsolidated affiliates
       Stock-based compensation                        31              31
       Restructuring and asset impairment              (7    )         17
       charges
       Payments for restructurings                     (38   )         (39   )
       Contributions to defined benefit                (45   )         (79   )
       pension plans
       Increase in accounts receivable and             (363  )         (452  )
       billed portion of finance receivables
       Collections of deferred proceeds from           115             96
       sales of receivables
       Increase in inventories                         (107  )         (34   )
       Increase in equipment on operating              (59   )         (67   )
       leases
       Decrease in finance receivables                 96              164
       Increase in other current and long-term         (99   )         (101  )
       assets
       Decrease in accounts payable and                (94   )         (144  )
       accrued compensation
       Decrease in other current and long-term         (66   )         (35   )
       liabilities
       Net change in income tax assets and             17              43
       liabilities
       Net change in derivative assets and             (47   )         21
       liabilities
       Other operating, net                           (38   )        (31   )
                Net cash used in operating            (87   )        (15   )
                activities
                                                                     
Cash Flows from Investing Activities:
       Cost of additions to land, buildings            (85   )         (91   )
       and equipment
       Proceeds from sales of land, buildings          3               4
       and equipment
       Cost of additions to internal use               (22   )         (37   )
       software
       Acquisitions, net of cash acquired              (53   )         (87   )
       Other investing, net                           4             (3    )
                Net cash used in investing            (153  )        (214  )
                activities
                                                                     
Cash Flows from Financing Activities:
       Net proceeds on debt                            57              998
       Common stock dividends                          (52   )         (57   )
       Preferred stock dividends                       (6    )         (6    )
       Proceeds from issuances of common stock         22              7
       Excess tax benefits from stock-based            1               -
       compensation
       Payments to acquire treasury stock,             (10   )         (50   )
       including fees
       Repurchases related to stock-based              (10   )         -
       compensation
       Distributions to noncontrolling                (3    )        (57   )
       interests
                Net cash (used in) provided by        (1    )        835   
                financing activities
Effect of exchange rate changes on cash and           (12   )        6     
cash equivalents
                                                                     
(Decrease) increase in cash and cash                   (253  )         612
equivalents
Cash and cash equivalents at beginning of             1,246         902   
period
Cash and Cash Equivalents at End of Period           $ 993          $ 1,514 
                                                                             

                                                                 
Financial
Review
                                                                         
Revenues
                   Three Months Ended
                   March 31,                                  % of Total
                                                              Revenue
(in                2013      2012       %             2013       2012
millions)                                      Change
                                                                         
Equipment          $ 724         $ 811         (11     %)     14   %     15  %
sales
Annuity             4,632       4,692      (1      %)     86   %     85  %
revenue
Total              $ 5,356      $ 5,503      (3      %)     100  %     100 %
Revenue
                                                                         
                                                                         
Reconciliation to Condensed Consolidated
Statements of Income:
Sales              $ 1,446       $ 1,588
Less: Supplies       (528  )       (565  )
and other sales
Less: Paper         (194  )      (212  )
sales
Equipment          $ 724        $ 811   
Sales
                                                                         
Outsourcing,
maintenance and    $ 3,793       $ 3,767
rentals
Add:                 117           148
Financing
Add: Supplies        528           565
and other sales
Add: Paper          194         212   
sales
Annuity            $ 4,632      $ 4,692 
Revenue
                                                                         

First quarter 2013 total revenues decreased by 3% compared to the first
quarter 2012, with no impact from currency, and reflected the following:

  *Annuity revenue decreased by 1% compared to the first quarter 2012, with
    no impact from currency. Annuity revenue is comprised of the following:

       *Outsourcing, maintenance and rentals revenue, which includes
         outsourcing revenue within our Services segment and maintenance
         revenue (including bundled supplies) and rental revenue, both
         primarily within our Document Technology segment. An increase of 1%
         was driven by an increase in outsourcing revenue in our Services
         segment, partially offset by a decline in maintenance revenue, due to
         moderately lower page volumes and revenue per page.
       *Supplies and other sales, which includes unbundled supplies and other
         sales, primarily within our Document Technology segment. A decrease
         of 7% was driven by moderately lower supplies demand, as well as a
         lowering of channel inventories in the U.S.
       *Paper sales, primarily within our Other segment, decreased by 8% from
         the first quarter 2012, driven by market pricing and lower activity.
       *Financing revenue declined by 21% from the first quarter 2012. The
         2012 sales of finance receivables drove approximately half of the
         total decline in 2013, while the remainder was driven by a decline in
         the volume of new finance receivables as a result of lower financed
         equipment sales in prior periods.

  *Equipment sales revenue is reported primarily within our Document
    Technology segment and the document outsourcing business within our
    Services segment.  Equipment sales revenue declined 11% as compared to the
    first quarter 2012, with no impact from currency. Declines were driven by
    the weak macro-environment as well as the timing of our mid-range product
    refresh. Entering the second quarter 2013, order backlog is up year over
    year, resulting from our first quarter 2013 product announcements in the
    mid-range and entry production color spaces. Consistent with prior
    quarters, price declines were in the range of 5% to 10%.

Additional analysis of the change in revenue for each business segment is
included in the “Segment Review” section.

                                                         
Costs, Expenses and Other Income
                                                                          
Summary of Key Financial Ratios
                                                                          
The following is a summary of key financial ratios used to assess our
performance:
                                                                          
                             Three Months Ended
                             March 31,
                             2013           2012              Change
                                                                          
Total Gross Margin           30.0  %           31.0  %           (1.0  )  pts.
RD&E as a % of               2.9   %           3.1   %           (0.2  )  pts.
Revenue
SAG as a % of                19.7  %           19.4  %           0.3      pts.
Revenue
Operating Margin             7.4   %           8.5   %           (1.1  )  pts.
^(1)
                                                                          
Pre-tax income               5.7   %           5.7   %           0.0      pts.
margin
                                                                          

Operating Margin

First quarter 2013 operating margin^1 of 7.4% decreased 1.1-percentage points
as compared to the first quarter 2012. This decrease was driven primarily by
an increase of SAG expenses as a percent of revenue in our Technology segment
as well as a decline in gross margin in our Services segment.

Gross Margin

Gross margin of 30% decreased 1.0-percentage point as compared to the first
quarter 2012. This decrease was driven by revenue mix within the Services
segment, contract ramp within document outsourcing, as well as the continued
increase of Services revenue as a percent of total revenue.

Services segment gross margin decreased by 0.7-percentage points as compared
to the first quarter 2012. The decrease was driven by revenue mix within the
segment and contract ramp within document outsourcing. Productivity
improvement and restructuring savings more than offset the impact of price
declines.

Document Technology segment gross margin was flat as compared to the first
quarter 2012 as cost improvements offset the impact of price declines.

Research, Development and Engineering Expenses (“RD&E”)

First quarter 2013 RD&E as a percentage of revenue of 2.9% decreased
0.2-percentage points from the first quarter 2012. In addition to lower
spending and improved productivity, this decrease was driven by the positive
mix impact of the continued growth in Services revenue, which historically has
a lower RD&E as a percentage of revenue.

RD&E of $154 million was $19 million lower than the first quarter 2012,
reflecting the impact of restructuring and productivity improvements.
Innovation continues to be a core strength and we continue to invest at levels
that enhance our innovation, particularly in services, color and software.
Xerox R&D is strategically coordinated with Fuji Xerox.

Selling, Administrative and General Expenses (“SAG”)

SAG as a percentage of revenue of 19.7% increased 0.3-percentage points from
the first quarter 2012. The increase was driven by lower than expected revenue
in our Document Technology segment reflecting product launch timing and
overall market conditions. This was partially offset by restructuring
benefits, productivity improvements and the positive mix impact from the
continued growth in Services revenue, which historically has a lower SAG as a
percentage of revenue.

SAG of $1,057 million was $11 million lower than the first quarter 2012. This
included a $1 million favorable impact from currency for the quarter. SAG
expenses reflect the following:

  *$19 million decrease in selling expenses, driven primarily by benefits
    from restructuring and productivity improvements, partially offset by the
    impact of acquisitions and investments in our mid-range product launch.
  *$7 million increase in general and administrative expenses, as
    restructuring savings and productivity improvements were more than offset
    by the impact of acquisitions.
  *$1 million increase in bad debt expenses to $25 million. Small increases
    in the U.S. and developing markets were partially offset by a decrease in
    Europe. First quarter 2013 bad debt expense remained at less than one
    percent of receivables.

Restructuring and Asset Impairment Charges

During the first quarter 2013, we recorded net restructuring and asset
impairment credits of $7 million, primarily resulting from net reversals and
adjustments in estimated reserves from prior period initiatives.

The restructuring reserve balance as of March31, 2013, for all programs was
$86 million, of which approximately $80 million is expected to be spent over
the next twelve months.

We expect to incur additional restructuring charges of approximately $35
million in the second quarter of 2013 for actions and initiatives which have
not yet been finalized.

During the first quarter 2012, we recorded net restructuring and asset
impairment charges of $17 million, which included approximately $22 million of
severance costs related to headcount reductions of approximately 500 employees
primarily in North America and $2 million of asset impairment charges. These
costs were partially offset by $7 million of net reversals for changes in
estimated reserves from prior period initiatives.

Amortization of Intangible Assets

During the first quarter 2013 we recorded $83 million of expense related to
the amortization of intangible assets.

Worldwide Employment

Worldwide employment of approximately 143,200 at March 31, 2013 decreased
approximately 4,400 from year-end 2012, due to restructuring-related actions
and attrition outpacing hiring.

                                         
Other Expenses, Net
                                              Three Months Ended
                                              March 31,
(in millions)                                  2013      2012 
                                                             
Non-financing interest expense                $ 61           $ 56
Interest income                                 (2   )         (3   )
Gains on sales of businesses and assets         -              (1   )
Currency gains, net                             (4   )         -
Litigation matters                              (37  )         (1   )
Loss on sales of accounts receivables           4              6
Deferred compensation investment gains          (6   )         (7   )
All other expenses, net                        (1   )        5    
         Total Other Expenses, Net            $ 15          $ 55   

Note: Other Expenses, Net are included in the Other segment
                                                                    

Non-financing interest expense

First quarter 2013 non-financing interest expense of $61 million was $5
million higher than first quarter 2012, driven by an increase in the core debt
balance. When combined with financing interest expense (cost of financing),
total company interest expense declined by $5 million from the first quarter
2012, driven by a lower total debt balance.

Litigation Matters

Litigation matters of $(37) million reflects the benefit resulting from a
reserve reduction related to recent litigation developments.

Income Taxes

First quarter 2013 effective tax rate was 17.0%.On an adjusted basis^1, the
first quarter 2013 tax rate was 21.6%, which was lower than the U.S. statutory
tax rate primarily due to foreign tax credits resulting from anticipated
dividends and other foreign transactions and the retroactive tax benefits from
the American Taxpayer Relief Act of 2012 tax law change of approximately $19
million.

First quarter 2012 effective tax rate was 24.6%. On an adjusted basis^1, first
quarter 2012 tax rate was 27.6%, which was lower than the U.S. statutory tax
rate primarily due to foreign tax credits resulting from anticipated dividends
and other foreign transactions as well as net tax benefits from the
geographical mix of profits.

Xerox operations are widely dispersed. The statutory tax rate in most non-U.S.
jurisdictions is lower than the combined U.S. and state tax rate. The amount
of income subject to these lower foreign rates relative to the amount of U.S.
income will impact our effective tax rate. However, no one country outside of
the U.S. is a significant factor to our overall effective tax rate. Certain
foreign income is subject to U.S. tax net of any available foreign tax
credits. Our full year effective tax rate includes a benefit of approximately
10 percentage points from these non-U.S. operations, which is comparable to
2012.

Our effective tax rate is based on nonrecurring events as well as recurring
factors, including the taxation of foreign income. In addition, our effective
tax rate will change based on discrete or other nonrecurring events that may
not be predictable. We anticipate that our effective tax rate for the
remaining quarters of 2013 will be approximately 28%, excluding the effects of
intangibles amortization and discrete events.

Equity in Net Income of Unconsolidated Affiliates

Equity in net income of unconsolidated affiliates, which primarily reflects
our 25% share of Fuji Xerox net income, was $47 million, an increase of $7
million compared to the first quarter 2012.

First quarter 2013 and first quarter 2012 equity income both include charges
of $4 million related to our share of Fuji Xerox after-tax restructuring.

Net Income

First quarter 2013 net income attributable to Xerox was $296 million, or $0.23
per diluted share. On an adjusted basis^1, net income attributable to Xerox
was $347 million, or $0.27 per diluted share, which includes a benefit of
approximately $0.02 per share resulting from a reserve reduction related to
recent litigation developments. First quarter 2013 adjustments to net income
reflect the amortization of intangible assets.

First quarter 2012 net income attributable to Xerox was $269 million, or $0.19
per diluted share. On an adjusted basis^1, net income attributable to Xerox
was $319 million, or $0.23 per diluted share. First quarter 2012 adjustments
to net income reflect the amortization of intangible assets.

The Net Income and EPS reconciliation table in the Non-GAAP Financial Measures
section contains the first quarter adjustments to net income.

The calculations of basic and diluted earnings per share are included as
Appendix I. See Non-GAAP financial measures for calculation of adjusted EPS.

                                                              
Segment Review
                                                                      
                          Three Months Ended March 31,
                          Total        % of Total     Segment         Segment
(in millions)             Revenues   Revenue        Profit          Margin
                                                      (Loss)
2013
     Services             $ 2,920      55     %       $  273          9.3   %
     Document               2,135      40     %          187          8.8   %
     Technology
     Other                 301        5      %         (65  )       (21.6 %)
     Total                $ 5,356      100    %       $  395         7.4   %
                                                                      
2012
     Services             $ 2,821      51     %       $  263          9.3   %
     Document               2,338      43     %          245          10.5  %
     Technology
     Other                 344        6      %         (52  )       (15.1 %)
     Total                $ 5,503      100    %       $  456         8.3   %
Refer to Appendix II for the reconciliation of Segment Profit to Pre-tax
Income.
                                                                            

Services

Our Services segment comprises three service offerings: Business Process
Outsourcing (“BPO”), Document Outsourcing (“DO”) and Information Technology
Outsourcing (“ITO”).

Revenue

First quarter 2013 Services total revenue of $2,920 million increased 4% from
the first quarter 2012, with no impact from currency.

  *BPO revenue increased 3% and represented 61% of total Services revenue.
    BPO growth was driven by our government healthcare, healthcare payer and
    customer care businesses.
  *DO revenue increased 1% and represented 27% of total Services revenue. DO
    growth was driven primarily by our new partner print services offerings.
  *ITO revenue increased 13% and represented 12% of total Services revenue.
    ITO growth was driven by the continued revenue ramp on recent signings.

Segment Margin

First quarter 2013 Services segment margin of 9.3% was flat as compared to the
first quarter 2012, as the decline in gross margin was offset by SAG
reductions which included benefits from restructuring.

Metrics

Pipeline

Our total Services sales pipeline grew 5% over the first quarter 2012. This
sales pipeline includes the Total Contract Value (“TCV”) of new business
opportunities that potentially could be contracted within the next six months
and excludes business opportunities with estimated annual recurring revenue in
excess of $100 million.

Signings

Signings are defined as estimated future revenues from contracts signed during
the period, including renewals of existing contracts. Services signings were
an estimated $3.7 billion in TCV for the quarter.

  *BPO signings of $2.8 billion TCV.
  *DO signings of $792 million TCV.
  *ITO signings of $108 million TCV.

Signings increased 64% as compared to the first quarter 2012. Signings on a
trailing twelve month basis decreased 11% in relation to the comparable prior
year period. The above DO signings figure represents Enterprise signings only
and does not include signings from our partner print services offerings.

Note: TCV is estimated total revenue for future contracts for pipeline or
signed contracts for signings as applicable.

Renewal rate (for BPO and ITO)

Renewal rate is defined as the annual recurring revenue (“ARR”) on contracts
that are renewed during the period as a percentage of ARR on all contracts on
which a renewal decision was made during the period. The first quarter 2013
contract renewal rate for BPO and ITO contracts was 89%, at the high end of
our target range of 85%-90%.

Document Technology

Our Document Technology segment includes the sale of products and supplies, as
well as the associated maintenance and financing of those products.

                                            
Revenue
                        Three Months Ended
                        March 31,
(in millions)           2013       2012          Change
                                                    
Equipment sales         $ 597         $ 679         (12 %)
Annuity revenue          1,538        1,659       (7  %)
Total Revenue           $ 2,135       $ 2,338       (9  %)
                                                        

First quarter 2013 Document Technology revenue of $2,135 million decreased 9%
from the first quarter 2012, with no impact from currency. Document Technology
revenues exclude the impact of growth in Document Outsourcing. Inclusive of
Document Outsourcing, first quarter 2013 aggregate document-related revenue
decreased 6% from the first quarter 2012. Document Technology segment revenue
results included the following:

  *Equipment sales revenue decreased by 12%. This decline was driven by the
    weak macro-environment as well as the timing of our mid-range product
    refresh. Price declines were in the historical 5% to 10% range.
  *Annuity revenue decreased by 7%, driven by a modest decline in total pages
    and revenue per page, the continued migration of customers to our partner
    print services offering (included in our Services segment) and a decline
    in financing revenue.
  *Document Technology revenue mix was 22% entry, 58% mid-range and 20%
    high-end, consistent with recent quarters.

Segment Margin

First quarter 2013 Document Technology segment margin of 8.8% decreased by
1.7-percentage points from the first quarter 2012. Gross margin was flat as
compared to first quarter 2012, as productivity and restructuring offset the
impact of price declines. SAG as a percent of revenue was negatively impacted
by lower than expected revenue driven by product launch timing and overall
market conditions.

Total Installs (Document Technology and Document Outsourcing^2)

Install activity includes installations for document outsourcing and
Xerox-branded products shipped to Global Imaging Systems (“GIS”). Detail by
product group is shown below:

Entry

  *16% increase in color multifunction devices driven by demand for the
    WorkCentre^® 6015, WorkCentre^® 6605 and the ColorQube 8700/8900.
  *6% increase in color printers driven by demand for the recently launched
    Phaser 6600 family of products as well as an increase in sales to OEM
    partners.
  *22% decrease in black-and-white multifunction devices driven by declines
    in all geographies.

Mid-Range

  *4% decrease in installs of mid-range color devices.
  *7% decrease in installs of mid-range black-and-white devices.

We expect to see the positive impact of our late first quarter 2013 product
refresh beginning in the second quarter 2013.

High-End

  *44% increase in installs of high-end color systems driven by growth across
    several product areas, including Entry Production Color and iGen, as we
    continue as market leader in the Production Color segment.
  *20% decrease in installs of high-end black-and-white systems, reflecting
    continued declines in the overall market.

Note: “Entry”, “Mid-Range” and “High-End” are defined in Appendix II.

Other

Revenue

First quarter 2013 Other revenue of $301 million decreased 13% from the first
quarter 2012, with no impact from currency. The decline is due primarily to
lower paper sales and lower sales of electronic presentation systems. Paper
comprised approximately 64% of the first quarter 2013 Other segment revenue.

On March 22, 2013, Xerox announced that it would sell its North American paper
and print media products business, which represents approximately 20% of total
Other segment revenue, to Domtar Corporation. The transaction is expected to
close in the second quarter 2013.

Segment Margin

First quarter 2013 Other segment loss of $65 million increased $13 million
from the first quarter 2012, primarily driven by profit declines in our wide
format business as well as an increase in non-financing interest expense. All
non-financing interest expense is contained within the Other segment.

Notes

^(1)See the “Non-GAAP Financial Measures” section for an explanation of the
non-GAAP financial measure.

^(2)Equipment sales associated with Document Outsourcing are reported as
revenue in our Services segment revenues.

Capital Resources and Liquidity

The following table summarizes our cash and cash equivalents for the three
months ended March 31, 2013 and 2012:

                                                              
                                      Three Months Ended
                                      March 31,
                                                  
(in millions)                         2013          2012         Change
                                                                      
Net cash used in operating            $ (87   )       $ (15   )       $ (72  )
activities
Net cash used in investing              (153  )         (214  )         61
activities
Net cash (used in) provided             (1    )         835             (836 )
by financing activities
Effect of exchange rate changes        (12   )        6             (18  )
on cash and cash equivalents
(Decrease) increase in cash and         (253  )         612             (865 )
cash equivalents
Cash and cash equivalents at           1,246         902           344  
beginning of period
Cash and Cash Equivalents at          $ 993          $ 1,514        $ (521 )
End of Period
                                                                      

Cash Flows from Operating Activities

Net cash used in operating activities was $87 million in the first quarter
2013. The $72 million decline in operating cash from first quarter 2012 was
primarily due to the following:

  *$72 million decrease in pre-tax income before depreciation and
    amortization, restructuring and litigation.
  *$98 million decrease due to losses on the settlements of foreign currency
    derivative contracts. The losses primarily relate to our hedges of Yen
    purchases and the related weakening of the Yen as compared to the U.S.
    Dollar and Euro. These losses are offset by favorable currency impacts on
    the cost of those purchases. In the aggregate, currency was favorable
    year-over-year.
  *$73 million decrease due to higher inventory levels reflecting the
    expected launch of new products as well as lower sales.
  *$60 million decrease due to lower net run-off of finance receivables
    primarily due to prior year finance receivables sales.
  *$108 million increase from accounts receivable primarily due to the
    benefits from the sales of accounts receivable and lower revenue.
  *$50 million increase primarily related to the timing of payments of
    accounts payable and accrued compensation.
  *$34 million increase due to lower contributions to our defined benefit
    pension plans.
  *$25 million increase associated with lower up-front costs and other
    customer-related spending for service contracts.

Cash Flows from Investing Activities

Net cash used in investing activities was $153 million in the first quarter
2013. The $61 million decrease in the use of cash from first quarter 2012 was
primarily due to the following:

  *$34 million decrease due to the 2013 acquisition of Impika for $53 million
    as compared to the 2012 acquisitions of RK Dixon and two smaller
    acquisitions totaling $87 million.
  *$21 million decrease due to lower capital expenditures (including internal
    use software).

Cash Flows from Financing Activities

Net cash used in financing activities was $1 million in the first quarter
2013. The $836 million decrease in cash from the first quarter 2012 was
primarily due to the following:

  *$941 million decrease from net debt activity. First quarter 2013 reflects
    an increase of $40 million in commercial paper. First quarter 2012
    reflects net proceeds of $1.1 billion on Senior Notes offset by a decrease
    of $100 million in commercial paper.
  *$54 million increase due to lower distributions to noncontrolling
    interests.
  *$40 million increase as a result of lower share repurchases.

Customer Financing Activities

The following represents our Total finance assets, net associated with our
lease and finance operations:

                                                    
                                            March 31,       December 31,
(in millions)                              2013            2012
                                                            
Total Finance receivables, net ^(1)         $  5,104        $    5,313
Equipment on operating leases, net            520              535
Total Finance Assets, net ^(2)              $  5,624        $    5,848


^(1)  Includes (i) billed portion of finance receivables, net, (ii) finance
receivables, net and (iii) finance receivables due after one year, net as
included in our Condensed Consolidated Balance Sheets.
^(2) Change from December 31, 2012 includes a decrease of $105 million due to
currency.

The following summarizes our debt:

                                         March 31,          December 31,
(in millions)                               2013                  2012
                                                                  
Principal debt balance^(1)                  $   8,470             $  8,410
Net unamortized discount                        (61     )            (63    )
Fair value adjustments                         130                142    
Total Debt                                  $   8,539            $  8,489  
_____________
(1) March 31, 2013 includes commercial paper of $40
million.
                                                                  

Our lease contracts permit customers to pay for equipment over time rather
than at the date of installation; therefore, we maintain a certain level of
debt (that we refer to as financing debt) to support our investment in these
lease contracts, which are reflected in Total finance assets, net. For this
financing aspect of our business, we maintain an assumed 7:1 leverage ratio of
debt to equity as compared to our finance assets. Based on this leverage, the
following represents the breakdown of total debt between financing debt and
core debt:

                                  
                       March 31,         December 31,
(in millions)          2013              2012
                                         
Financing Debt^(1)     $  4,921          $    5,117
Core Debt                3,618              3,372
Total Debt             $  8,539          $    8,489

^(1)Financing debt includes $4,466 million and $4,649 million as of March 31,
2013 and December 31, 2012, respectively, of debt associated with Total
finance receivables, net and is the basis for our calculation of “Equipment
financing interest” expense. The remainder of the financing debt is associated
with equipment on operating leases.

Sales of Accounts Receivable

Accounts receivable sales arrangements are utilized in the normal course of
business as part of our cash and liquidity management. We have facilities in
the U.S., Canada and several countries in Europe that enable us to sell to
third-parties, on an on-going basis, certain accounts receivable without
recourse. The accounts receivables sold are generally short-term trade
receivables with payment due dates of less than 60 days. Accounts receivable
sales were as follows:

                                                                  
                                                              Three Months
                                                              Ended March 31,
(in millions)                                                 2013     2012
                                                                       
Accounts receivable sales                                     $ 854    $ 875
Deferred proceeds                                               115      147
Fees associated with sales                                      4        6
Estimated increase (decrease) to operating cash flows           16       (68 )
^(1)


^(1) Represents the difference between current and prior period receivable
sales adjusted for the effects of the deferred proceeds, collections prior to
the end of the quarter and currency.

Forward-Looking Statements

This release contains "forward-looking statements" as defined in the Private
Securities Litigation Reform Act of 1995. The words “anticipate,” “believe,”
“estimate,” “expect,” “intend,” “will,” “should” and similar expressions, as
they relate to us, are intended to identify forward-looking statements. These
statements reflect management’s current beliefs, assumptions and expectations
and are subject to a number of factors that may cause actual results to differ
materially. These factors include but are not limited to: changes in economic
conditions, political conditions, trade protection measures, licensing
requirements and tax matters in the United States and in the foreign countries
in which we do business; changes in foreign currency exchange rates; actions
of competitors; our ability to obtain adequate pricing for our products and
services and to maintain and improve cost efficiency of operations, including
savings from restructuring actions; the risk that unexpected costs will be
incurred; the risk that subcontractors, software vendors and utility and
network providers will not perform in a timely, quality manner; our ability to
recover capital investments; the risk that multi-year contracts with
governmental entities could be terminated prior to the end of the contract
term; the risk that our Services business could be adversely affected if we
are unsuccessful in managing the ramp-up of new contracts; development of new
products and services; our ability to protect our intellectual property
rights; our ability to expand equipment placements; the risk that individually
identifiable information of customers, clients and employees could be
inadvertently disclosed or disclosed as a result of a breach of our security;
interest rates, cost of borrowing and access to credit markets; reliance on
third parties for manufacturing of products and provision of services; our
ability to drive the expanded use of color in printing and copying; the
outcome of litigation and regulatory proceedings to which we may be a party;
and other factors that are set forth in the “Risk Factors” section, the “Legal
Proceedings” section, the “Management’s Discussion and Analysis of Financial
Condition and Results of Operations” section and other sections of our 2012
Annual Report on Form 10-K filed with the Securities and Exchange Commission.
The Company assumes no obligation to update any forward-looking statements as
a result of new information or future events or developments, except as
required by law.

Non-GAAP Financial Measures

We have reported our financial results in accordance with generally accepted
accounting principles (“GAAP”). In addition, we have discussed the non-GAAP
measures described below. A reconciliation of these non-GAAP financial
measures to the most directly comparable financial measures calculated and
presented in accordance with GAAP are set forth below as well as in the 2013
first quarter presentation slides available at www.xerox.com/investor.

These non-GAAP financial measures should be viewed in addition to, and not as
a substitute for, the Company’s reported results prepared in accordance with
GAAP.

Adjusted Earnings Measures

To better understand the trends in our business, we believe it is necessary to
adjust the following amounts determined in accordance with GAAP to exclude the
effects of the certain items as well as their related income tax effects.

  *Net income and Earnings per share (“EPS”)
  *Effective tax rate

In 2013 and 2012 we adjusted for the amortization of intangible assets. The
amortization of intangible assets is driven by our acquisition activity which
can vary in size, nature and timing as compared to other companies within our
industry and from period to period. Accordingly, due to the incomparability of
acquisition activity among companies and from period to period, we believe
exclusion of the amortization associated with intangible assets acquired
through our acquisitions allows investors to better compare and understand our
results. The use of intangible assets contributed to our revenues earned
during the periods presented and will contribute to our future period revenues
as well. Amortization of intangible assets will recur in future periods.

We also calculate and utilize an Operating income and margin earnings measure
by adjusting our pre-tax income and margin amounts to exclude certain items.
In addition to the amortization of intangible assets, operating income and
margin also exclude Other expenses, net as well as Restructuring and asset
impairment charges. Other expenses, net is primarily comprised of
non-financing interest expense and also includes certain other non-operating
costs and expenses. Restructuring and asset impairment charges consist of
costs primarily related to severance and benefits for employees pursuant to
formal restructuring and workforce reduction plans. Such charges are expected
to yield future benefits and savings with respect to our operational
performance. We exclude these amounts in order to evaluate our current and
past operating performance and to better understand the expected future trends
in our business.

Constant Currency

To better understand trends in our business, we believe that it is helpful to
adjust revenue to exclude the impact of changes in the translation of foreign
currencies into U.S. dollars. We refer to this adjusted revenue as “constant
currency.” Currencies for developing market countries (Latin America, Brazil,
Middle East, India, Eurasia and Central-Eastern Europe) that we operate in are
reported at actual exchange rates for both actual and constant revenue growth
rates because (1) these countries historically have had volatile currency and
inflationary environments and (2) our subsidiaries in these countries have
historically taken pricing actions to mitigate the impact of inflation and
devaluation. Management believes the constant currency measure provides
investors an additional perspective on revenue trends. Currency impact can be
determined as the difference between actual growth rates and constant currency
growth rates.

Management believes that these non-GAAP financial measures provide an
additional means of analyzing the current period’s results against the
corresponding prior period’s results. However, these non-GAAP financial
measures should be viewed in addition to, and not as a substitute for, the
Company’s reported results prepared in accordance with GAAP. Our non-GAAP
financial measures are not meant to be considered in isolation or as a
substitute for comparable GAAP measures and should be read only in conjunction
with our consolidated financial statements prepared in accordance with GAAP.
Our management regularly uses our supplemental non-GAAP financial measures
internally to understand, manage and evaluate our business and make operating
decisions. These non-GAAP measures are among the primary factors management
uses in planning for and forecasting future periods. Compensation of our
executives is based in part on the performance of our business based on these
non-GAAP measures.

A reconciliation of these non-GAAP financial measures and the most directly
comparable measures calculated and presented in accordance with GAAP are set
forth on the following tables:

Net Income and EPS reconciliation:

                                                   
                         Three Months Ended              Three Months Ended
                         March 31, 2013                  March 31, 2012
(in millions;            Net                             Net
except per share         Income       EPS              Income      EPS
amounts)
Reported                 $  296         $  0.23          $  269        $ 0.19
                                                                       
Adjustments:
Amortization of            51            0.04            50          0.04
intangible assets
Adjusted                 $  347         $  0.27          $  319        $ 0.23
                                                                       
Weighted average
shares for                                 1,280                         1,396
adjusted EPS^(1)
Fully diluted
shares at end of                           1,283                         1,406
period^(2)
__________
(1)Average shares for the calculation of adjusted EPS include 27 million of
shares associated with the Series A convertible preferred stock and therefore
the related quarterly dividend was excluded.
(2)Represents common shares outstanding at March 31 as well as shares
associated with our Series A convertible preferred stock plus dilutive
potential common shares as used for the calculation of diluted earnings per
share in the first quarter 2013 and 2012.
                                                                       

Guidance:

                                                     
                                        Earnings Per Share Guidance
                                        Q2 2013           FY 2013
                                                          
GAAP EPS                                $0.19 - $0.21     $0.94 - $1.00
                                                          
Adjustments:
Amortization of intangible assets       0.04              0.15
                                                          
Adjusted EPS                            $0.23 - $0.25     $1.09 - $1.15
                                                          
Note: GAAP and Adjusted EPS guidance includes anticipated restructuring


Effective Tax reconciliation:

              Three Months Ended                  Three Months Ended
               March 31, 2013                       March 31, 2012
(in            Pre-Tax     Income      Effective     Pre-Tax     Income      Effective
millions)      Income    Tax       Tax           Income    Tax       Tax Rate
                           Expense     Rate                      Expense
                                                                             
Reported       $  305      $  52       17.0  %       $  313      $  77       24.6   %
                                                                             
Adjustments:
Amortization
of               83         32                      82         32       
intangible
assets
Adjusted       $  388      $  84       21.6  %       $  395      $  109      27.6   %

                                                                                    

Operating Income / Margin reconciliation:

                                                                     
                    Three Months Ended                 Three Months Ended
                    March 31, 2013                     March 31, 2012
(in millions)       Profit    Revenue     Margin     Profit    Revenue    Margin
Reported            $ 305       $ 5,356     5.7  %     $ 313       $ 5,503    5.7  %
pre-tax income
Adjustments:
Amortization
of intangible         83                                 82
assets
Xerox
restructuring         (7  )                              17
(credit)
charge
Other                15                             55                 
expenses, net
Adjusted            $ 396       $ 5,356     7.4  %     $ 467       $ 5,503    8.5  %
Operating
Equity in net
income of             47                                 40
unconsolidated
affiliates
Litigation            (37 )                              -
matters
Fuji Xerox
restructuring         4                                  4
charge
Other                (15 )                           (55 )               
expenses, net
Segment             $ 395      $ 5,356     7.4  %     $ 456      $ 5,503    8.3  %
Profit/Revenue
                                                                                   

Services Revenue Breakdown:

                                                                
                                     Three Months Ended March 31,
(in millions)                        2013            2012            Change
                                                                        
Business Processing                  $  1,805           $ 1,745         3   %
Outsourcing
Document Outsourcing                    788               780           1   %
Information Technology                  376               332           13  %
Outsourcing
Less: Intra-Segment                    (49    )         (36   )       36  %
Eliminations
Total Revenue - Services             $  2,920          $ 2,821        4   %
                                                                        
Segment Profit - Services            $  273            $ 263          3   %
                                                                        
Segment Margin - Services              9.3    %         9.3   %       -



Note:

  *Q1 2012 Business Processing Outsourcing (BPO) and Document Outsourcing
    (DO) revenues have been restated by $108M to reflect the transfer of the
    Communication & Marketing Services (CMS) business from DO to BPO in 2013.
    The revenue transfer for the remaining periods of 2012 were $114M for Q2,
    $109M for Q3 and $119M for Q4.
  *ITO growth includes 1 pt of growth from intercompany services which is
    eliminated in total services.

                                          
APPENDIX I
                                         
Xerox Corporation
Earnings per Common Share
(in millions, except per share data.
Shares in thousands)
                                             
                                             
                                             Three Months Ended
                                             March 31,
                                             2013             2012
                                                                 
Basic Earnings per Share:
                                                                 
Net income attributable to Xerox             $ 296               $ 269
Accrued Dividends on preferred stock          (6        )        (6        )
                                                                 
                                                                 
Adjusted net income available to common      $ 290              $ 263       
shareholders
                                                                 
                                                                 
Weighted average common shares                1,225,271         1,337,397 
outstanding
                                                                 
Basic Earnings per Share                     $ 0.24             $ 0.20      
                                                                 
                                                                 
Diluted Earnings per Share:
                                                                 
Net income attributable to Xerox             $ 296               $ 269
Accrued Dividends on preferred stock          -                 (6        )
Adjusted net income available to common      $ 296              $ 263       
shareholders
                                                                 
                                                                 
Weighted average common shares                 1,225,271           1,337,397
outstanding
Common shares issuable with respect to:
Stock options                                  4,854               7,143
Restricted stock and performance shares        21,372              22,349
Convertible preferred stock                    26,966              -
Convertible securities                        1,992             1,992     
Adjusted weighted average common shares       1,280,455         1,368,881 
outstanding
                                                                 
Diluted Earnings per Share                   $ 0.23             $ 0.19      
                                                                 
The following securities were not
included in the computation of diluted
earnings per share because to do so
would have been anti-dilutive (in        
thousands of shares):
Stock options                                  25,230              41,543
Restricted stock and performance shares        18,412              20,466
Convertible preferred stock                   -                 26,966    
                                              43,642            88,975    
                                                                 
                                                              
                                                                 
Dividends per Common Share                   $ 0.0575           $ 0.0425    
                                                                             


APPENDIX II
                                                  
Xerox Corporation
Reconciliation of Segment Operating Profit to Pre-Tax Income
                                                       
                                                       
                                                       Three Months Ended
                                                       March 31,
(in millions)                                          2013      2012 
Segment Profit                                         $ 395          $ 456
Reconciling items:
          Restructuring and asset impairment             7              (17  )
          charges
          Restructuring charges of Fuji Xerox            (4   )         (4   )
          Amortization of intangible assets              (83  )         (82  )
          Litigation matters                             37             -
          Equity in net income of unconsolidated         (47  )         (40  )
          affiliates
                                                                     
Pre-Tax Income                                         $ 305         $ 313  

Our reportable segments are aligned to how we manage the business and view the
markets we serve. Our reportable segments are Services, Document Technology
and Other.

Services:

The Services segment comprises three service offerings:

  *Business Process Outsourcing.
  *Document Outsourcing, which includes Managed Print Services and revenues
    from our partner print services offerings.
  *Information Technology Outsourcing.

Document Technology:

The Document Technology segment is centered around strategic product groups,
which share common technology, manufacturing and product platforms. This
segment includes the sale of document systems and supplies, provision of
technical service and financing of products. Our products range from:

  *“Entry”, which includes A4 devices and desktop printers.
  *“Mid-Range”, which includes A3 devices that generally serve workgroup
    environments in mid to large enterprises. This includes products that fall
    into the market categories, Color 41+ppm <$100K and Light Production
    91+ppm <$100K.
  *“High-End”, which includes production printing and publishing systems that
    generally serve the graphic communications marketplace and large
    enterprises.

Other:

The Other segment includes Xerox Supplies Business Group (“XSBG”)
(predominantly paper), Wide Format Systems, licensing revenue, GIS network
integration solutions and electronic presentation systems and non-allocated
corporate items, including Other expenses, net.

Contact:

Media:
Xerox
Karen Arena, +1-203-849-5521
Karen.Arena@xerox.com
or
Ken Ericson, +1-410-571-0161
Kenneth.Ericson@xerox.com
 
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