Fuji Xerox Establishes Executive
Print Innovation Center "epicenter"

To accelerate its production printing services business, Fuji Xerox will open "epicenter," which will provide highly professional services to innovate the digital printing business. The epicenter will incorporate a collection of Fuji Xerox's digital printing systems to replicate various production applications, serve as a new business model, and act as a collaboration space with outside business partners. Tokyo epicenter, which will begin operation from September 1, will serve as one of the four epicenters Fuji Xerox will establish throughout Asia.

[Background]
Fuji Xerox launched the DocuTech Production Publisher Model 135 in October 1993 to lead the on-demand publishing industry. With the DocuColor iGen3 Digital Production Press launched in June 2004, the Company has strengthened its position as leader in the digital printing field.

Today, there is increased customer demand in publishing related to their promotional activities that generate greater revenue. This includes not only cost reduction and shorter lead-times, but also customized information as well as linkage with Web or mission-critical systems.

To meet such high-level customer demand, it is necessary to establish a new business model based on profitable, next generation digital printing to provide new value-added services. The new epicenter will act as a place to offer solutions to customer issues and provide customers with new ideas.

[epicenter Naming]
The name, epicenter, which is an acronym for Executive Print Innovation Center, was chosen because it conveys the tectonic change that the Company will be offering through the new added values of digital printing, to cultivate the new publishing business era.

[epicenter Concept]
The Center will offer various services functions to solve customer issues related to the publishing business. Customers can learn about industry-leading digital publishing technology, or experience solution best practices that are actually in operation, to discover issues and solutions by themselves. Fuji Xerox will then collaborate with global business partners who provide industry-leading services, to provide the latest technology or know-how to solve customers' issues related to technology and process.

The epicenter's technical staffs, including analysts and systems engineers, will provide customized services to cope with customer-unique issues. Analysts who are stationed at the epicenter will collaborate with business partners, who offer professional services in e.g. sales promotion planning as well as image management, production or database establishment, to create a new service that will meet customers' demand,

Fuji Xerox will establish epicenters in four locations-Tokyo, Sydney, Singapore and Shanghai. The four epicenters and Xerox Corporation will work closely to support customers worldwide.

[epicenter Positioning]
Fuji Xerox is aiming to grow the ratio of its services business to total revenue. The epicenter will function as one of the Company's direct marketing services functions, to accelerate Fuji Xerox's production printing business growth, which is one of the Company's core businesses. Fuji Xerox will collaborate with Fuji Photo Film Co., Ltd., who is a partner in publishing sales area, as well as its sales subsidiary FUJIFILM Graphic Systems Co., Ltd., to expand digital printing industry.