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( BW)(XEROX)(BB63) Xerox and Pitney Bowes Settle Patent
Infringement Case

    Business Editors
    UK REGULATORY NEWS

    STAMFORD, Conn.--(BUSINESS WIRE)--Sept. 19, 2002--

Xerox Corporation (NYSE: XRX) and Pitney Bowes Inc. (NYSE: PBI)
announced today that they have resolved their pending patent
infringement litigation on mutually acceptable terms. While details of
the settlement agreement are confidential, Xerox denied any
infringement. The company will make a one-time payment to Pitney Bowes
in an amount that is not material to Xerox.

Pitney Bowes sued Xerox in June 2001 in the United States District
Court for the District of Connecticut claiming infringement on a
Pitney Bowes patent. The patent in question expired on May 31, 2000,
which precludes any ongoing licensing agreement.

For additional information about The Document Company Xerox, please
visit our Worldwide Web site at www.xerox.com/investor.

XEROX(R), The Document Company(R) and the digital X(R) are trademarks
of XEROX CORPORATION.

   Short Name: Xerox Corp.
   Category Code: MSC
   Sequence Number: 00000808
   Time of Receipt (offset from UTC): 20020919T142531+0100

    --30--jgm/in

    CONTACT: James A. Ramsey, 203/968-3807
             James.Ramsey@usa.xerox.com
             Fax: 203/968-3944
                    or
             Cynthia B. Johnston, 203/968-3489
             Cindy.Johnston@usa.xerox.com
             Fax: 203/968-3944

    KEYWORD: CONNECTICUT UNITED KINGDOM INTERNATIONAL EUROPE
    INDUSTRY KEYWORD: COMPUTERS/ELECTRONICS PUBLISHING LEGAL
    SOURCE: Xerox Corp.

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