Achieves One Trillion Yen
in Consolidated Net Sales

Fuji Xerox Co., Ltd. has exceeded its target sales figure of 1 trillion yen, posting a total of 1.23 trillion yen in consolidated net sales for fiscal 2003 ended March 31, 2004.

Sales of color multifunction devices increased substantially in Japan, primarily through the launch of a new series of DocuCentre Color models in January 2004, which gained extremely favorable market response. These machines employ EA-HG (Emulsion Aggregation High Grade) toner, which is vastly superior to conventional toners, enabling outstanding image quality and print speeds. As a result, sales of color multifunction machines reached 12,800 units for fiscal 2003. Sales figures for the fourth quarter were up 70 percent compared to the same three-month period in the previous fiscal term and up 30 percent on a year-on-year basis.
Exports to Europe and the United States also grew considerably, notably with a 50 percent rise in sales volume of color multifunction devices. Including black and white machines, exports to these regions increased 60 percent.
Fuji Xerox recorded strong performances in Asia-Oceania, comprising China. Unit sales of color multifunction devices surged 35 percent, while in China, where moves toward digitization are progressing swiftly, locally developed black and white digital machines drove an overall sales increase.

Sales in this segment increased 4 percent year-on-year. Fuji Xerox boosted its lineup with the release of DocuPrint C2425/C2426, eco-conscious color laser printers that feature an energy-saving design while maintaining high image quality and speed. The printer business acquired from Fujitsu Limited also contributed steadily to revenues during the period.
In recent news, Fuji Xerox sold its one millionth license for DocuWorks, a document handling software that was introduced to the market in September 1998. This highly flexible document handling software is indispensable as a solutions tool with multifunction devices. In the years to come, Fuji Xerox intends to further strengthen its services offering prowess through the development of such software, with the aim of creating important strategic support foundations for its document business. The Company also expanded its printer business by concluding a technology-based partnership with Dell Inc. of the United States.
Fuji Xerox has always conducted its business activities based on comprehensive quality management that emphasizes satisfaction, environmental consideration and social contribution to deepen customer trust. The Company will continue to strive to maximize synergies through close ties with the Fuji Photo Film Group as a means to providing optimum value for all stakeholders.