Xerox To Acquire Veenman; Expands Reach to Small and Mid-Size Businesses in the Netherlands

NORWALK, Conn., April 16, 2008  -- Xerox Corporation (NYSE: XRX) and Corporate Express NV (NYSE: CXP) today announced a definitive agreement for Xerox to acquire Veenman B.V., a subsidiary of Corporate Express, for approximately $68 million (€43 million) expanding Xerox's reach into the small and mid-sized business (SMB) market in the Netherlands. Veenman, with six offices located throughout the Netherlands, is the country's leading independent distributor of office printers, copiers, and multifunction devices serving small and mid-size businesses.

Founded in 1919 and headquartered in Capelle a/d IJssel, the Netherlands, Veenman has recently expanded to provide document management software and consulting support to its customers. As an office technology dealer, Veenman sells products from various suppliers, none of which today include Xerox. In addition to its existing offerings, Veenman will start selling Xerox document management products following the close of the acquisition.



By acquiring Veenman, Xerox will more than double its sales force in the region and gain access to more than 4,000 SMB customers. In the past year, Xerox has significantly expanded its distribution to the SMB market through broadened relationships with resellers and concessionaires in Europe, and through the acquisition of Global Imaging Systems in the U.S., which gave Xerox access to 200,000 new SMB customers.

According to Matt Marshall at IDC, nearly 55 percent of all businesses in the Netherlands are SMBs that spent nearly $420 million on printing equipment, services and supplies last year. IDC estimates that shipment of all printers and multifunction devices will grow 6 percent in the Netherlands per year over the next five years.

"Xerox offers products and services that meet the needs of any size business at prices that fit any budget. With our broadened product portfolio, we want to bring the Xerox brand to more SMB customers, supported with reliable local service," said Armando Zagalo de Lima, president, Xerox Europe. "In the Netherlands, there is no stronger office technology dealer than Veenman. Their extensive distribution and local support complement the benefits of Xerox's technology, strengthening the value proposition we bring to small and mid-size businesses."

Veenman will over time add the full range of Xerox office and light production products and supplies, including all Phaser® and WorkCentre® printers and multifunction systems that print, copy, fax and scan.

"With this acquisition Veenman enters an exciting new era," said Eric Annema, managing director of Veenman. "We have been waiting for such an important step for years. As a Xerox subsidiary, we will be able to serve our customers even better. Adding to our existing renowned brands we can now offer all the benefits of Xerox's exceptional products, services and experiences and stay true to our dedicated local service, connecting with our customers on every level of their business."

Once the transaction is complete, Veenman will operate as a wholly-owned subsidiary of Xerox. Annema will continue to lead the company, reporting directly to Rogério Fangueiro, senior vice president, Office Group, Xerox Europe, and working in parallel with Xerox's other distribution channels in the region. Veenman will maintain its name and keep its headquarters in Capelle a/d IJssel. Its employees will continue to operate as part of Veenman.

The acquisition will be an all-cash transaction and is expected to close later this year pending approval from the Dutch antitrust authority and other agencies. This is Xerox's fifth acquisition in the past two years, with the company investing over $1.7 billion in companies that broaden its distribution and expand its document-related services and software portfolio.