`Nice Shirt. Could You Xerox One For Me?'

Xerox Corp. is diversifying into the T-shirt business--in a manner of speaking. The company has figured out a way to make its digital color printers put art onto fabric with better quality than traditional silk-screening: 400 dots per inch of printing, up from the equivalent of 80 with silk screens.

First, using a desktop computer and graphics software, an artist creates an image, such as a logo. Then, the artist sends the image electronically to a Xerox 5775 SSE or Majestik Color printer, which makes copies on a newly developed thermal-transfer paper. Finally, this thermal paper is sent to a production center in Bellingham, Wash., run for Xerox by Graffoto Inc., which transfers the images onto the customer's choice of textiles. Xerox says that the finished T-shirts and other garments can be on their way back to a customer within 24 hours.

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