STAMFORD, Conn., Oct. 23, 2006 – Xerox Corporation (NYSE: XRX) announced today third-quarter 2006 earnings per share of 54 cents compared to third- quarter 2005 earnings per share of 5 cents. The company’s third-quarter earnings this year include a previously announced tax benefit of 45 cents per share partially offset by restructuring of 7 cents per share and a litigation charge of 7 cents per share. Excluding these items, Xerox delivered adjusted EPS of 23 cents, an increase of 28 percent over third-quarter 2005 adjusted EPS of 18 cents.
“Through earnings expansion, annuity growth and a strong financial position that allows for stock buyback and acquisitions, we exceeded our expectations this quarter and are delivering on our commitment to build shareholder value,” said Anne M. Mulcahy, Xerox chairman and chief executive officer