AT&T, Xerox to make distributed printing easy as phone call

June 21, 1995 -- BASKING RIDGE, N.J. -- AT&T and Xerox Corporation today
announced a market trial of a new network-based printing service that lets
businesses deliver documents in multiple sites electronically and have
them professionally printed, bound and finished on demand. At the time of
the announcement, Crestec Los Angeles, Inc., Sir Speedy, Unisys
Corporation and Xerographic Reproduction Centers (XRC) have signed
contracts to become the first market trial customers. Moore Corporation
and Stream International, Inc. also have indicated that they will
participate in the market trial. Agreements are pending with those two
companies. The market trial service is a combination of AT&T Network
Demand Printing (NDP) Service and Xerox Distributed Print on Demand
(XDPOD) technologies.

The market trial is the latest step in a cooperative effort announced last
year by AT&T and Xerox to create a cost effective distributed
print-on-demand service that is easy to access and use. Printers,
publishers, and corporate reproduction centers facing cost and short
time-to-market pressures are expected to be the first customers for the
service. During the market trial, AT&T and XEROX will evaluate the most
appropriate pricing structures and service functions and features, such as
security, storage and archival requirements, and status-checking to best
meet a variety of customer needs. Upon successful completion of the market
trial, the service is expected to be generally available in the first
quarter of 1996.

CUSTOMER BENEFITS

Companies that use the service will benefit from reduced warehousing and
shipping costs, faster delivery of documentation when and where it's
needed, and fewer documents becoming obsolete or outdated.

"Instead of a 'one-to-one' scenario, we provide an easy solution for
distributing documents in a 'one-to-many' scenario," said Jim Cosgrove,
vice president and general manager of AT&T's Business Multimedia
Services.

For smaller companies and commercial printers, this new service provides
access to a state-of-the-art image network without requiring an investment
in private network infrastructure. "In essence customers 'rent' the
technology and expertise without investing the time, money and people
usually required to reap the benefits of an end-to-end solution," said
John Lopiano, president, Xerox Production Systems division.

To use the service, businesses use Xerox-developed software to send
print-ready files to the AT&T network, select destination sites, and
specify printing and finishing parameters such as tabs, covers or saddle
stitching. At the press of a button, documents are printed on Xerox print
on demand devices where and when the documents are needed and in the
quantities required.

The service is specially designed for intermittent (bursty) image traffic.
AT&T's data network will store files waiting to be sent, route them to the
requested destinations, verify that the sender has permission to access
these destinations, and notify the sender of the status of the print job
at each destination point.

Because of the pay-as-you-use cost and network structure of this new
service, quick printers and commercial printers will benefit because it
allows them to offer additional services to existing customers and reach
customers located outside their geographical area. For example, once a
number of quick-printer locations are linked, customers can walk into
their nearest location with a disk or hard copy in hand and quickly,
easily and at an affordable cost send the document in minutes to be
professionally printed, bound and finished on state-of-the-art Xerox
DocuTech Network Publishers and eventually other print-on-demand devices
located across the U.S. In addition, publishers can move jobs
electronically among editorial, graphics, pre-press and their printers to
reduce production time.

MARKET POTENTIAL

According to State Street Consultants, a Boston-based consulting firm
specializing in printing, publishing and communications industries, 130
billion of the pages currently printed on offset presses in the U.S. are
eligible for distributed print-on-demand in 1995. This figure is projected
to grow to 205 billion pages by the year 2000.

MARKET TRIAL CUSTOMERS

Crestec Los Angeles, Inc., the U.S. subsidiary of a global document
engineering company, views the AT&T and Xerox service as a major
breakthrough in the development of a domestic and, eventually, global,
distributed printing infrastructure. "Our customers have U.S. and global
document distribution requirements and these services will enhance our
ability to meet those requirements," said Les Krzyzanowski, president of
Crestec.

Moore Corporation, a global leader in delivering information handling
products and services, plans to use the new service to complement the
existing capabilities of its digital print network. "Moore's ability to
distribute and print documents for our customers when and where they are
needed, in the exact quantity needed will be enhanced by this offering and
help us satisfy our customers' increasing need for electronic document
transmission," said George Gillmore, president of the Business Systems
division of Moore.

Sir Speedy, a franchiser of printing, copying, and digital network centers
with more than 780 locations, initially plans to provide destination sites
for the market trial. "We expect to offer the service to our customers who
need documents quickly printed and shipped to various locations," said Don
Lowe, president of Sir Speedy, Inc.

Stream International Inc., an independent subsidiary of R. R. Donnelley &
Sons Company, considers this new service offered by AT&T and Xerox as a
pivotal element in its strategy for distributed print-on-demand. As the
world's largest manufacturer, replicator and reseller of software, Stream
is developing a range of electronic distribution solutions for its
worldwide customers, primarily software publishers and Fortune 1000
companies.

"This new service will support Stream's mission to electronically deliver
the latest, most accurate intellectual property to the point of need in
the form that the end user requires," said Rory Cowan, chairman of
Stream.

Unisys, a major information management company providing information
services and technology in 100 countries, plans to use the service to
distribute technical documentation, handbooks, and parts catalogs from
their high-tech printing facility in Plymouth, Michigan, to their
facilities in Blue Bell, Pa., Salt Lake City and other sites yet to be
determined.

"We expect to reduce shipping costs and delivery times. We see the ability
to easily add destination sites as a key benefit to the service," said
Philip Abraham, manager of Electronic Storage and Retrieval Systems for
the Software and Publications Manufacturing Division.

Xerographic Reproduction Centers, a Manhattan-based printer serving many
large corporate and international customers, sees the new solution as a
positive alternative to the Internet for document distribution.

"We're participating because of the security, reliability and additional
services this solution offers as a part of the total solution," said XRC
president Roger Gimbel. He expects to use the new solution to exchange
print-ready files with customers and affiliated commercial printers both
nationally and worldwide.

HOW IT WORKS

Users will send a job in the form of a job ticket that will indicate the
destination sites and finishing requirements to the network via an
easy-to-use interface. The network stores the job, sends notification to
the destination sites that a job is waiting. Destination sites access the
network, download the job using the same interface and then prepare and
produce the job using Xerox DocuTech Network Printers.

The service includes Xerox DPOD, the interface software developed by Xerox
using AT&T's application programming interfaces which allow Xerox
customers to connect its DocuTech family of printers to the AT&T NDP
Service. Trial pricing will be on a transaction and usage basis.

"We anticipate that many more companies will incorporate the 'distribute
then print' concept in their processes," said Lopiano. "It's an ideal
method of distributing newsletters, technical documentation, sales
proposals, schematics and training materials," he added.

Additionally, AT&T offers a secure, reliable network and provides the
technical expertise to engineer, administer, upgrade and expand the
network's capacity.

"We expect to change the way documents are printed and distributed by
making it easy, fast, flexible and cost-effective," Cosgrove said.

AT&T is the world's networking leader, providing communications services
and products, as well as network equipment an computer systems, to
businesses, consumers, telecommunications services providers and
government agencies. The Document Company, Xerox is the leader in
providing world-class document processing products, systems and services.
Xerox copiers, duplicators, electronic printers, optical scanners,
facsimile machines, networks, digital publishing machines and related
products, software and supplies are marketed in more than 130 countries.

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