Xerox officials state that it will sell half of its stake in Fuji Xerox for 160 billion yen in cash, equivalent to more than $1.3 billion in US currency based on recent exchange rates. The sale will decrease Xerox's interest in the company from 50% to 25%. Fuji's ownership interest will be 75% once the deal closes at the end of this month. The agreement will result in an after-tax book gain of approximately $310 million, company officials state.

Company officials note that Xerox has now raised almost $2 billion in asset dispositions since December 2000 when it completed the sale of Xerox (China) Ltd., and Xerox (Hong Kong) Ltd., to Fuji Xerox for $550 million in cash. Last October, Xerox announced a turn around plan that included the sale of assets generating $2 billion to $4 billion; cost reductions exceeding $1 billion, and a sharpened focus on its strategic core businesses.

"With this transaction, Xerox greatly enhances its liquidity and has made significant progress on its turn around pledge to generate more than $2 billion in asset sales," said Paul Allaire, Xerox chairman and chief executive officer. "The agreement also preserves the benefits of a model American-Japanese business partnership as Xerox and Fuji Xerox continue to collaborate on and exchange the most innovative technology in the document processing industry."