Fujitsu to Transfer Printer Systems Operations to Fuji Xerox

Fuji Xerox Co., Ltd. and Fujitsu Limited today announced that they have signed a letter of intent for Fujitsu's printer systems business to be transferred to Fuji Xerox. The move, which builds on close cooperation in the document solutions business, is intended to allow both companies to focus on their strategic priorities. Details of the transfer are currently being discussed, and a definitive agreement is expected by the end of November.

Based on the letter of intent, Fujitsu will transfer to Fuji Xerox its printer systems development operations and manufacturing rights, as well as its related wholesale business for sales of consumable products to affiliated companies. The transfer excludes Fujitsu's personal computer-related printer business. Fuji Xerox will acquire Fujitsu's assets related to the operations being transferred, and Fujitsu employees engaged in these operations will be transferred to Fuji Xerox. Even after the transfer, however, manufacturing of printer systems will be handled by a Fujitsu affiliate. In addition, Fujitsu will continue to market and provide maintenance services for printer systems to its customers.

With its state-of-the art color laser printer engine and image processing technology, Fuji Xerox is a leader in the document solutions business. From low-end desktop printers to high-speed high-end printers, the company has positioned its full line of laser printers as one of its core businesses. In October 2001, Fuji Xerox acquired NEC Corporation's laser printer business, and has subsequently been exploring a wide range of options for further strengthening its business, including through tie-ups with partners like Fujitsu.

Fujitsu has been undertaking various measures in conjunction with the major structural reform program and mid-term strategy for achieving new growth opportunities that it announced last August. In accordance with these measures, and after reviewing its growth strategy for the printer systems business, in which it has noted strengths in high-speed printing and controller technologies, the company determined that the needs of its customers would best be served by partnering with Fuji Xerox rather than continuing to develop the business on its own.

Founded in 1962, Fuji Xerox is a 75/25 joint venture between Fuji Photo Film Co., Ltd. of Japan and Xerox Corporation of Stamford, Connecticut, U.S.A. It is a market leader in digital monochrome and color products and document solutions in Japan and the Asia-Pacific region, with manufacturing facilities in Japan, China (including Taiwan), and Korea. It is also a leader in recycling, knowledge management and corporate citizenship. The Fuji Xerox Group has 33,800 employees, including 13,400 in Fuji Xerox Co., Ltd., Japan. Fuji Xerox recorded revenues of 942.8 billion yen in fiscal year 2001. For more information, please see: http://www.fujixerox.co.jp/eng/

Fujitsu is a leading provider of customer-focused IT and communications solutions for the global marketplace. Pace-setting technologies, high-reliability/performance computing and telecommunications platforms, and a worldwide corps of systems and services experts make Fujitsu uniquely positioned to unleash the infinite possibilities of the broadband Internet to help its customers succeed. Headquartered in Tokyo, Fujitsu Limited (TSE:6702) reported consolidated revenues of 5 trillion yen (about US$38 billion) for the fiscal year ended March 31, 2002. For more information, please see: http://www.fujitsu.com/