Since the 1960’s, Xerox has practiced productlife cycle management, converting old machinesinto functional components. Today we arereaping the benefits for our customers, for theenvironment and for the bottom line

Some parts just don’t wear out. Sowhy throw them out?The use of reprocessed parts is not anafterthought in the Xerox product designprocess. Xerox maximizes the end-of-lifepotential of products and parts by building theconcepts of easy disassembly, durability, reuseand recycling into equipment design. Today,100% of Xerox-designed equipment isdeveloped with remanufacturing in mind.

Giving new life to precious assetsEquipment remanufacture and the reuse andrecycling of parts diverted 143 million pounds ofwaste from landfills in 2002. Parts reuse hassignificantly reduced the amount of rawmaterials and energy needed to manufacturenew equipment. The financial benefits ofequipment remanufacture and parts reuseamount to several hundred million dollars ayear.

Because We Can’tRemanufacture the Earth…

At Xerox, we strive to ensure that our products,supplies, solutions and services not only offerthe best value and quality, but also contribute toa better environment.

Our environmental commitment:We are becoming a Waste-Free Company ineverything we do. The Xerox Waste-Free goal isto create products that minimize waste duringmanufacturing, use by the customer, and at theend of products’ initial life cycles.

This brochure explains how Xerox’sremanufacturing, reuse and recycling programsfor equipment and supplies help us meet ourWaste-Free goal.

Xerox Remanufactured Equipment

Xerox Equipment Remanufacture and PartsReuse/Recycle: Total Waste Diverted from Landfill

Xerox at a GlanceXerox at a GlanceMaking Quality Products:The Remanufacturing Process

Xerox’s unique technologies and processesensure that all of our products, regardless ofreprocessed part content, meet the samespecifications for performance, quality andreliability.

Signature analysisSignature Analysis enables Xerox engineers todetermine the usable life of parts. We test newparts to determine a “signature” – anacceptable range for the noise, heat orvibration that parts produce while in use. Wethen test the same characteristics in parts fromreturned equipment. Only those parts whosesignatures are consistent with those of newly-built parts are approved and processed forreuse.

CO2–based cleaningXerox has replaced traditional solvent-basedequipment cleaning processes with carbondioxide (CO2) blasting technology. This newermethod strips dirt, grease and oil from usedparts by blasting them with carbon dioxidepellets. Compared to traditional methods, CO2blasting eliminates the generation of hazardouswaste, reduces cleaning times and increasespart recovery rates.

Parts Reuse:38,000,000 lbs.

Parts Recycling:105,000,000 lbs.

Total:143,000,000 lbs.

Xerox’s commitment toEnvironmental Choice spans our entire line of equipment and supplies.Ensuring Customer Satisfaction

The same high standards, throughand throughBecause Xerox values its reputation for qualityand service, we put all Xerox products throughthe same comprehensive quality assuranceprocess and back them with the full array ofXerox guarantees, warranties and servicesagreements -- without exception.

• Only parts that can meet all functional,reliability and appearance parameters for thelife of the product are processed for reuse.

• Neither the performance nor the cosmeticappearance of reprocessed parts andassemblies can deviate from pre-establishedrequirements and standards.

• We have such high confidence in the qualityand reliability of these reprocessed parts thatall Xerox equipment, regardless ofreprocessed part content, is sold withXerox’s 3-Year Total Satisfaction Guarantee.

Return Programs for XeroxSupplies:Closed-Loop Recycling

Xerox Supplies Return Program:Total Waste Diverted from Landfill

Xerox Green World AllianceXerox’s return program for supplies is a centralelement of our Waste-Free strategy. The mostextensive in the industry, the program coversprint and copy cartridges, toner containers, andwaste toner.

Return trip: easy and freeXerox’s return program uses a simple process forcollecting spent supplies from customers. Prepaidpostage labels and the packaging from newsupplies allow customers to ship these materialsback to Xerox for reuse and recycling. Forcartridges and waste toner bottles, Xeroxincludes return labels in boxes of new supplies.Labels for toner containers are available fromXerox upon request.

Making a world of differencePartnerships with customers have helped makethe Xerox program a success. In total, Xerox’ssupplies return program prevented more than18million pounds of waste from entering landfills in2002.

Xerox at a Glance

The Document Company, Xerox, is a globalcompany offering the widest array of document-related business solutions, products andservices in the industry.

Learn more about Xerox’s Waste-Free initiativesand other environmental, health and safetyprograms at:www.xerox.com (refer to “About Xerox” section)

The Xerox Total Satisfaction Guarantee applies only toequipment which has been continuously maintained by Xeroxor its authorized representatives under a Xerox expresswarranty or Xerox Maintenance agreement. Certainrestrictions apply.

2003 XEROX CORPORATION. All rights reserved. Xerox ,The Document Company , and the digital X are registeredtrademarks of XEROX CORPORATION. 09/2003

Toner Containers: 1,400,000 lbs.Waste Toner: 2,500,000 lbs.

Cartridges: 14,400,000 lbs.