Xerox Wins Replacement $109 Million Agreement for Digital Printers At 975 OfficeMax Stores

Business Wire, April 23, 2002

Business Editors

NEW YORK--(BUSINESS WIRE)--April 23, 2002

More than 3,800 New Xerox Machines Bring All-Digital, Networked

Printing and Copying to OfficeMax's In-Store CopyMax Facilities

Under a new four-year, $109 million agreement, Xerox Corporation (NYSE: XRX) will help OfficeMax, Inc. (NYSE: OMX) upgrade its 975 in-store print-for-pay CopyMax facilities with all-digital, networked printers and copiers by the end of the year.

This arrangement replaces older Xerox equipment and will result in less total cost to OfficeMax over the same period of time. More than 3,800 Xerox digital color and black-and-white machines will be installed at CopyMax sites across North America from April to November, improving the range, quality and convenience of document services offered to CopyMax customers via the Internet, over the counter and through a national outside sales force.

OfficeMax said it expects this expanding range of services -- including Internet job submissions, electronic document delivery, print on demand and personalized variable information printing -- to help CopyMax significantly increase market share over the next two years.

"We are building a state-of-the-art network for digital printing and copying anywhere, anytime, that will improve convenience and quality -- providing added value -- for our customers," said Michael Feuer, chairman, chief executive officer and co-founder of OfficeMax. "Our partners at Xerox provide the end-to-end solutions our customers want -- the broad selection of color and black-and-white printers and copiers, prompt local service at every location, a strong and knowledgeable account team, and a long-term commitment to leadership in digital printing."

Under the new agreement, CopyMax will standardize on Xerox DocuColor 12 Printer/Copiers at all of its sites, for consistent color and image quality across print locations.

Additional equipment includes a mix of Xerox DocuTech Production Publishers, high-speed Document Centre digital multifunction systems, and DocuColor 2000 Series Digital Color Presses.

"This investment gives OfficeMax's CopyMax one of the world's premier digital printing networks," said Michael C. MacDonald president, Xerox North American Solutions Group. "As a key printer and copier provider for OfficeMax since the company's founding 14 years ago, the new installation renews our mutual commitment and serves as an excellent example of Xerox leadership in helping print providers make printing and copying easier and more powerful for its customers."

The upgraded Xerox equipment will be installed at the OfficeMax production center in Kent, Wash.; 133 high-volume printing sites; and 838 "mini" shops, all of which are connected by high-speed networks to enable low-cost electronic distribution for printing where final output is needed and easy load-balancing among the shops. The agreement includes supplies, service for this equipment, several licenses for DigiPath Production Software, several scanners and an agreement to participate in marketing efforts, in addition to the printers and copiers.

OfficeMax operates nearly 1,000 superstores in 49 states, Puerto Rico, the U.S. Virgin Islands and joint venture partnerships in Latin America. In addition to offering office products, business machines and related items, OfficeMax superstores feature CopyMax and FurnitureMax, store-within-a-store modules devoted exclusively to "print-for-pay" services and office furniture. Additionally, the company reaches customers with an offering of more than 30,000 items through its award-winning e-commerce site, www.OfficeMax.com, its direct-mail catalogs and its outside sales force, all of which are serviced by its three PowerMax distribution facilities, 18 delivery centers and two national call centers.

Customer Contact:

For more information about Xerox digital products, visit www.xerox.com.

NOTE TO EDITORS: Visit Xerox Booth 803, April 23-25, at On Demand 2002, Jacob K. Javits Convention Center, New York. For more information about Xerox, visit www.xerox.com/news. XEROX(R), The Document Company(R)and the digital X(R)are trademarks of XEROX CORPORATION.

Note from OfficeMax: Statements made in this press release, other than those concerning historical information, constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, and are made pursuant to the "safe harbor" provisions of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements use such words as "may," "will," "should," "expects," "plans," "anticipates," "estimates," "believes," "thinks," "continues," "indicates," "outlook," "looks," "goals," "initiatives," "projects," or similar expressions. These statements are likely to address the Company's growth strategy, future financial performance (including sales and earnings), strategic initiatives, marketing and expansion plans and the impact of operating initiatives. The forward-looking statements, which speak only as of the date of this release, are subject to risks, uncertainties and other factors, that could cause actual results to differ materially from those stated, projected or implied in the forward-looking statements. These risks and uncertainties include the following: risks associated with general economic conditions (including effects of additional terrorist attacks and hostilities, continued economic slowdown and declining employment rate or other changes in our customers' business environments); failure to adequately execute plans and unforeseen circumstances beyond the Company's control in connection with development, implementation and execution of new business processes, procedures and programs (including expansion of our CopyMax business) and other risks and uncertainties described in Exhibit 99.1 of the Company's Annual Report on Form 10-K for the fiscal year ended January 26, 2002, and in other reports and exhibits to reports filed with the Securities and Exchange Commission (these descriptions are incorporated herein by reference). You are strongly urged to review such filings for a more detailed discussion of such risks and uncertainties. The Company's SEC filings are available, at no charge, at www.sec.gov and www.freeEDGAR.com, as well as on a number of other Web sites. The foregoing list of important factors is not exclusive. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.