Benjamin Reitzes Given Quotations

While we do not like to 'react' to information, given where Xerox has opened - we just do not believe there is much upside, ... ...We are also particularly concerned about an 'unexpected' receivables problem in Mexico that should hit EPS this quarter by up to 6 cents per share. This development calls into question management's systems and controls.

We believe second-quarter 2006 earnings per share over 40 cents could be considered a positive given the recent plunge in shares.