UXBRIDGE -- Xerox today announced the streamlining of its European distribution model, which could eventually treble the number of resellers through which Xerox Office products can be bought. SMARTer Distribution will deliver sustainable growth to Xerox Office Group by taking advantage of economies of scale that give end users guaranteed service levels and increased choice.

During 2006 Xerox's two-tier distribution model, which currently consists of 49 country-based tier-one distributors serving some 8,000 resellers, will be restructured to comprise three regional master distributors - Scribona, Tech Data and Ingram Micro. Tech Data and Ingram Micro will cover the bulk of the Western European countries, while Scribona will provide product distribution in the Nordic countries.

Around a third (16) of the 49 current Xerox Office distributors are local offices of Scribona, Ingram Micro or Tech Data, which will remain as part of the SMARTer Distribution network. In the UK, Xerox will retain Micro-P (Micro Peripherals) as a hardware distributor, to work alongside Ingram Micro and Computer 2000 (part of the Tech Data Group). Transition from Xerox's current distributors to the new distribution model will take place throughout 2006.

The new model will ensure that Xerox Office products are made available to most, if not all, of Western Europe's 30,000-plus printer and copier resellers. Scribona, Tech Data and Ingram Micro also cover the vast majority of the IT market and therefore Xerox can reach a larger number of IT resellers than today - a key focus in the company's growth strategy.

The SMARTer Distribution companies, all of whom currently work alongside Xerox and have an international presence, were chosen because their business strategies were compatible with Xerox's own: They have exceptional logistical capabilities and comprehensive IT infrastructures, as well as the ability to support and develop the sales channel. They will collect the hardware from Xerox's warehouse hub network in economical loads, rather than Xerox shipping on-demand to multiple locations.

Simultaneously Xerox plans to expand significantly its network of customer-facing tier-two resellers into new markets, such as Graphic Arts, and open up its product line to more IT resellers. Its resellers will be able to access a broader range of printers and copiers, all with the option to offer customers Xerox's fixed cost-per-page contract PagePack.

Xerox general manager and senior vice president, Xerox Europe, Office Group Cees van Doorn said: "A key 2006 focus is on optimising our distribution capacity. The introduction of SMARTer Distribution will radically increase the number of European Xerox resellers, and therefore provide more customer choice and a platform for increased market share. The streamlined model brings us closer to our distributors, resellers and customers. Because it allows us to exchange business critical information to our distributor network on a much more regular basis, we'll be more responsive to resellers' and customers' needs. By making our distribution network completely transparent, SMARTer Distribution makes it easier for our customers and partners to do business with us."

The SMARTer Distribution model only applies to equipment distributed by the Xerox Office Group in Western Europe.

About Xerox Europe
Xerox Europe, the European operations of Xerox Corporation, markets a comprehensive range of Xerox products, solutions and services, as well as associated supplies and software. Its offerings are focused on three main areas: offices from small to large, production print and graphic arts environments, and services that include consulting, systems design and management, and document outsourcing.

Xerox Europe also has manufacturing and logistics operations in Ireland, the UK and the Netherlands, and a research and development facility (Xerox Research Centre Europe) in Grenoble, France. For more information visit, www.xerox.com.

Xerox is a trademark of Xerox Corporation. All non-Xerox brands and product names are trademarks or registered trademarks of their respective companies.

Media Contacts
David Millican, Xerox UK, tel: +44 (0) 1895 843 196,
email: david.millican@xerox.com

Kinross + Render (on behalf of Xerox),
Luica Mak or Tony Brown, tel: +44 (0) 20 7592 3100,
email: lm@kinrossrender.com/ tb@kinrossrender.com