Xerox to Delay Filing of Its 2000 10-K Report

Press release from the issuing company

STAMFORD, Conn., April 2, 2001  --- Xerox Corporation (NYSE: XRX) today said that the filing of its year 2000 10-K report would be delayed. This delay relates to an internal review begun last week by the company's Audit Committee, in cooperation with the company's auditors, KPMG. This will permit a fuller audit review than previously contemplated and a sign-off on the company's 2000 financial statements. The company and its Audit Committee stated that they believe that the company's accounting policies and procedures are appropriate and consistent with generally accepted accounting principles. However, in light of the previously disclosed investigation by the Securities and Exchange Commission, the Audit Committee and the auditors believe that a fuller review is appropriate. KPMG has advised the company that it believes that such fuller review is needed for it to satisfy its auditing responsibilities, and that it will work with the Audit Committee and the Committee's counsel to complete the review as quickly as possible.