TORONTO, ON -- Xerox Canada Inc. today announced the Canadian Securities Regulators have granted it an exemption from most of its Canadian continuous disclosure requirements, including the requirement to prepare and file audited financial statements. Instead of audited financial statements, Xerox Canada Inc. will be filing certain alternative annual and interim financial information, containing the consolidated income statement, statement of retained earnings, cash flow statement and balance sheet. The alternative financial information will be unaudited. Xerox Canada Inc. has also applied to the Ontario Securities Commission seeking an order exempting it from the requirement to have an audit committee.

The decision is subject to a number of conditions, including the requirement that holders of Xerox Canada Inc.'s Class B exchangeable shares receive all disclosure materials that Xerox Corporation is required to send to holders of Xerox Corporation common shares under applicable securities legislation, and that Xerox Corporation continues to be the beneficial owner of all voting securities of Xerox Canada Inc. Xerox Canada Inc.'s obligation to make timely disclosure of material changes that occur in its affairs, but not also in the affairs of Xerox Corporation, is not affected by the decision of the securities regulators.

Except for the alternative annual and interim financial information to be provided to its shareholders, Xerox Canada Inc. will be relying on the continuous disclosure documents filed by Xerox Corporation. Copies of these documents can be found on SEDAR at http://www.sedar.com, on Xerox Corporation's Investor Relations website at http://www.xerox.com/investor and on the U.S. Securities and Exchange Commission (EDGAR) website at www.sec.gov/edgar.shtml.

For more detailed information, please refer to the MRRS Decision Document dated April XX, 2008 on the OSC website at: http://www.osc.gov.on.ca./Regulation/Orders/2008/ord_2008_index.jsp

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Media Contacts:
Laura Mergelas, Xerox Canada, 416-733-6216, laura.mergelas@xerox.com
Mike Moeller, Xerox Canada, 203-849-2469, michael.moeller@xerox.com

This release contains forward-looking information that is subject to a number of risks and uncertainties that could cause actual results to differ materially from those set forth in, or implied by, such forward-looking information.

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