Xerox Settles Sales Commissions Practice Lawsuit

Business Wire, April 10, 2008

NORWALK, Conn. -- Xerox Corporation (NYSE: XRX) and representatives of a class of current and former African-American sales representatives have settled a class action lawsuit brought in May 2001. The plaintiffs alleged race discrimination with respect to sales territory assignments, quotas and compensation. U.S. District Judge John Gleeson gave preliminary approval to the proposed settlement.

Xerox adamantly denies that it engaged in any policy or practice of unlawful discrimination or retaliation, or any other unlawful conduct. However, Xerox believes it is in the best interest of its shareholders and employees to settle the lawsuit, bringing to an end the protracted and costly litigation.

As a result of the settlement, Xerox will pay $12 million, which the company accrued for in the second quarter of 2006. The company has also agreed to establish a task force comprised of a diverse group of Xerox employees to ensure that African-American sales representatives are compensated in a non-discriminatory manner by, among other things, assessing the territory assignment process.

The class is represented by Milberg LLP and the Law Offices of Diane Bradley & Associates. Xerox is represented by Nixon Peabody LLP.

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