CSR Press Release

STAMFORD, Conn. -- In 2002, Susan Bates and a team of Xerox volunteers from Wilsonville, Ore., wanted to put their artistic talents to good use - so they started a weekly art program at the Rosemont School for Girls in Portland.

Bates, the Xerox Wilsonville volunteer coordinator, said the watercolor painting and arts and crafts classes are popular. And officials at Rosemont, the largest secure residential treatment center for troubled teen girls in the Pacific Northwest, have leveraged the success of the program to secure additional funding from the state. "Rosemont is often a last chance for these girls," Bates said. "Their mood and outlook has changed due to the positive mentoring of our volunteers and the opportunity to create something of value."

Thousands of Xerox Corporation (NYSE: XRX) employees throughout the United States volunteer for projects like these each year through the Xerox Community Involvement Program, which marks its 30th anniversary this year. In 1974, its inaugural year, XCIP had 1,000 employees participating in 96 projects nationwide. Since that time, nearly 405,000 employees have participated in more than 15,000 projects, donating millions of volunteer hours. Each year more than 13,000 people, or one-third of the Xerox U.S. work force, volunteer in their communities with company sponsorship.

"At Xerox, we believe corporate citizenship is most effective when it involves the power of our people - a highly skilled, socially responsible workforce that is making a difference in neighborhoods across the country," said Joseph Cahalan, vice president, The Xerox Foundation. "Through the Xerox Community Involvement Program, our employees identify worthy local causes and bring them to the attention of the company. "With individual XCIP project funding of up to $5,000, Xerox teams lend their time and talent to programs that change lives and enrich communities."

Over the years, XCIP projects have ranged from job training to Special Olympics, from soup kitchens to school mentoring, from counseling to environmental cleanup. Some additional recent program examples:

• Probation Challenge - Chicago, Ill.: For the past 25 years, now-retired Xerox employee Joe DuPar has been leading a team of more than 20 current and former Xerox employees who provide assistance for troubled youth and first-time criminal offenders through this first court-mandated program of its kind in the country. Probation Challenge assisted more than 1,000 youths last year by providing education and training for the General Educational Development Test, computer repair, carpentry, and multimedia and video production.

• Senior Citizen Dinner Dance - Boston, Mass.: About 30 Xerox employees help to plan this Boston Elderly Commission event for 400 senior citizens. Xerox employee and event coordinator Karen Adams notes that it's heartwarming to see so many people having a great time. "Many of them have limited social outlets and they look forward to this all year. They especially enjoy the camaraderie, fellowship and interaction with the younger people who organize this event."

• Circle of Friends - Lewisville, Texas: Started by local students to engage their developmentally challenged peers, Circle of Friends relies on XCIP for funding and volunteer support for the annual Grand Ball Prom. About 50 Xerox employees help with decorations and act as chaperones; the XCIP funds are used to rent tuxedos and buy dresses.

• Shared Ski Adventures - Rochester, N.Y.: Helping people with disabilities become independent skiers, Xerox employees serve as SSA instructors on the slopes. XCIP funds will be used this year to offset program costs like instructor training and equipment expenses. Xerox employee and SSA parent Denny Wyckoff said, "Our 13-year-old son, Matthew, has cerebral palsy and we continue to search for ways to improve his balance and involvement in social activities. Because of Shared Ski Adventures, Matt can ski independently with his older brothers - a great boost to his self-confidence."

In addition to supporting XCIP activities, Xerox is paying the full salary and benefits for nine employees to work full-time for nonprofit agencies, including the American Cancer Society and the American Red Cross, through the company's Social Service Leave program. Applying the company's rich heritage in innovation and technology, Xerox Science Consultants volunteer their time to teach science in elementary schools. Overall, the Xerox Foundation contributed $11 million in 2003 in five broad areas: education and work force preparedness, science and technology, employee and community affairs, the arts and cultural events, and national affairs.

Corporate philanthropy is a fundamental component of Xerox's corporate social responsibility and citizenship efforts, which include environmental, health and safety programs; minority and women-owned supplier programs; diversity and employee support; and business ethics and corporate governance initiatives.

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