Xerox Completes Acquisition of Veenman B.V.

Xerox Corporation (NYSE: XRX) completed its cash acquisition of Veenman B.V. for $68 million (€43M). The acquisition pairs Xerox’s portfolio of document products and services with Veenman’s distribution capacity in the Dutch small- and medium-sized business (SMB) market. Xerox will more than double its sales force and gain access to more than 4,000 SMB customers in the Netherlands. Veenman focuses on SMB customers through six office locations in the Netherlands that sell and service document management systems such as printers, copiers and multifunction devices. As the country’s leading independent office technology reseller, Veenman sells products from various suppliers, including now Xerox. Over the next few months, Veenman will begin to offer a broad range of Xerox office products and supplies, including Phaser® and WorkCentre® printers and multifunction systems that print, copy, fax and scan. Xerox has initiated a step-by-step training program for Veenman employees to sell and support the Xerox portfolio. "We are seeing a lot of acquisitions and channel consolidation in the office imaging market,” said Matt Marshall, research director at IDC. "Recently we have noted Xerox’s expansion strategy in the global SMB market accelerating. Since it acquired and integrated Global Imaging Systems in the U.S., we have seen Xerox's growing capacity in the SMB marketplace.” Veenman, acquired from Corporate Express NV (NYSE: CXP), now operates as a wholly owned subsidiary of Xerox. Eric Annema, managing director of Veenman, continues to lead the company, reporting directly to Rogério Fangueiro, senior vice president, Office Group, Xerox Europe. They are working in parallel to align with Xerox’s other SMB distribution channels. "Veenman has created an incredibly successful business that is respected not only in the industry but also by its customers and people. As part of Xerox, Veenman’s mandate is to continue doing what it does so well: applying its entrepreneurial spirit and powerful connection to the local communities it serves,” said Fangueiro. "With the Veenman team and our already well-established network of concessionaires and resellers, Xerox has unmatched distribution capacity to serve more customers and grow our presence in the SMB market.” "This acquisition brings our dedicated service together with Xerox’s premier brand. It’s a natural fit,” said Annema. "It allows us to strengthen our customer relationships with the breadth and quality of Xerox offerings while retaining the people, portfolio and business model that contribute to our success.” Veenman maintains its headquarters in Capelle a/d IJssel. Its 318 employees continue to operate as part of Veenman and will keep their local brand and sales, service and management teams. The Veenman acquisition is Xerox’s fifth in the past two years. The company has invested over $1.8 billion in companies that broaden its distribution and expand the company’s document-related services and software portfolio. Note: This release contains "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. The words "anticipate,” "believe,” "estimate,” "expect,” "intend,” "will,” "should” and similar expressions, as they relate to us, are intended to identify forward-looking statements. These statements reflect management’s current beliefs, assumptions and expectations and are subject to a number of factors that may cause actual results to differ materially. These factors include but are not limited to the risk that we will not realize all of the anticipated benefits from our 2007 acquisition of Global Imaging Systems; the risk that unexpected costs will be incurred; the outcome of litigation and regulatory proceedings to which we may be a party; actions of competitors; changes and developments affecting our industry; quarterly or cyclical variations in financial results; development of new products and services; interest rates and cost of borrowing; our ability to protect our intellectual property rights; our ability to maintain and improve cost efficiency of operations; changes in foreign currency exchange rates; changes in economic conditions, political conditions, trade protection measures, licensing requirements and tax matters in the foreign countries in which we do business; reliance on third parties for manufacturing of products and provision of services; and other factors that are set forth in the "Risk Factors” section, the "Legal Proceedings” section, the "Management’s Discussion and Analysis of Financial Condition and Results of Operations and Financial Condition” section and other sections of our Quarterly Report on Form 10-Q for the quarter ended March 31, 2008 and our 2007 Form 10-K filed with the Securities and Exchange Commission. The Company assumes no obligation to update any forward-looking statements as a result of new information or future events or developments, except as required by law. Xerox®, the Xerox wordmark and the spherical connection symbol are trademarks of Xerox Corporation in the United States and/or other countries.