Xerox to Invest $25 Million to Expand Upstate N.Y. Toner Plant

ROCHESTER, N.Y. -- Xerox Corporation (NYSE: XRX) will invest $25 million in the coming year to expand its EA Toner plant to handle the increasing worldwide need for chemically grown toner used in Xerox printers and production presses. The project will increase Xerox’s manufacturing capacity of EA Toner by 50 percent at the company’s plant in Webster, N.Y.

The current emulsion aggregation (EA) Toner plant opened in 2007 and features more than 20 miles of pipe and stainless steel tanks that produce billions of micron-sized toner particles. Originally constructed for $60 million, Xerox’s total capital investment in the toner plant will now reach nearly $100 million. Construction to expand the plant will begin this month and should be completed by the end of 2011. The expansion will add 10 engineers and union technicians to the current workforce of about 75.

Developed by Xerox and protected by more than 300 patents, EA toner produces sharper images using less toner per page. Since EA toner was first introduced, Xerox and Fuji Xerox have designed more than 50 office and production printing products that use EA toner. The current plant produces EA toner for use in Xerox products around the globe.

“As one of the world’s largest producers of toner, we have looked at several alternatives on how and where to expand our manufacturing capacity,” said Wim Appelo, president of the Xerox Global Business and Services Group. “We chose to upgrade our existing facility not only because it makes the most economic sense but also because we benefit from the strong local technological expertise and the opportunity to invest in job growth in the U.S.

The five-story, 100,000 square-foot plant located near Rochester, N.Y. was originally designed for energy efficiency, and uses more than 4,000 sensors that track information about temperature, humidity, air flow and other variables.

Unlike traditional toner, which is created by physically grinding composite polymeric materials to micron-sized particles, EA toner is chemically grown enabling the size, shape and structure of the particles to be precisely controlled. This environmentally-responsible Xerox-developed technology leads to improved print quality, less toner usage, less toner waste and less energy required for manufacturing and for printing.

About Xerox
Xerox Corporation is a $22 billion leading global enterprise for business process and document management. Through its broad portfolio of technology and services, Xerox provides the essential back-office support that clears the way for clients to focus on what they do best: their real business. Headquartered in Norwalk, Conn., Xerox provides leading-edge document technology, services, software and genuine Xerox supplies for graphic communication and office printing environments of any size. Through ACS, A Xerox Company, which Xerox acquired in February 2010, Xerox also offers extensive business process outsourcing and IT outsourcing services, including data processing, HR benefits management, finance support, and customer relationship management services for commercial and government organizations worldwide. The 133,000 people of Xerox serve clients in more than 160 countries. For more information, visit http://www.xerox.com, http://news.xerox.com or http://www.acs-inc.com. For investor information, visit http://www.xerox.com/investor.