Xerox Settles Sales Commissions Practice Lawsuit

NORWALK, Conn.--(Business Wire)--
Xerox Corporation (NYSE: XRX) and representatives of a class of
current and former African-American sales representatives have settled
a class action lawsuit brought in May 2001. The plaintiffs alleged
race discrimination with respect to sales territory assignments,
quotas and compensation. U.S. District Judge John Gleeson gave
preliminary approval to the proposed settlement.

Xerox adamantly denies that it engaged in any policy or practice
of unlawful discrimination or retaliation, or any other unlawful
conduct. However, Xerox believes it is in the best interest of its
shareholders and employees to settle the lawsuit, bringing to an end
the protracted and costly litigation.

As a result of the settlement, Xerox will pay $12 million, which
the company accrued for in the second quarter of 2006. The company has
also agreed to establish a task force comprised of a diverse group of
Xerox employees to ensure that African-American sales representatives
are compensated in a non-discriminatory manner by, among other things,
assessing the territory assignment process.

The class is represented by Milberg LLP and the Law Offices of
Diane Bradley & Associates. Xerox is represented by Nixon Peabody LLP.

Note: For more information on Xerox, visit http://www.xerox.com or
http://www.xerox.news. Xerox(R), the Xerox wordmark and the spherical
connection symbol are trademarks of Xerox Corporation in the United
States and/or other countries.

Media Contacts:
Xerox Corporation
Michael Moeller, +1-203-849-2469
michael.moeller@xerox.com
or
Milberg LLP
Barry Weprin, +1-212-594-5300
bweprin@milberg.com
or
Diane Bradley, +1-202-234-9294
dbradley@employmentalalternatives.com

Copyright Business Wire 2008