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Reinforces Product Development in China for Monochrome Multifunction Devices Targeting Chinese Market, and Establishes China Office

Fostering Local Personnel to Seek Simultaneous Development of Three Models by 2013

SHANGHAI, China, April 18, 2012 — Fuji Xerox Co., Ltd. will reinforce its capability to develop and provide products to meet the changing and growing Chinese market needs by strengthening the development functions of Fuji Xerox of Shanghai Ltd., which primarily manufactures multifunction devices. Fuji Xerox has introduced an education program to foster the product development workforce in China from the current 30 to 70 people by 2013. To support these product development activities, Fuji Xerox has established the China Office as of April 1.

With these measures, the company aims at building sufficient capacity for simultaneously developing three models in China, by 2013.

Reinforcement of the product development function in China

Of the product development functions currently handled in Japan, Fuji Xerox of Shanghai aims to enhance the planning and development capabilities of products targeting Small and Medium-sized Businesses (SMB) in China, especially A3 monochrome multifunction devices. Planning and developing products in Shanghai where it is close to the market aims to facilitate the development of products that meet the needs of the Chinese market. Until now, products for the worldwide market were planned and developed in Japan and localized for the Chinese market.

Establishment of the China Office

Fuji Xerox has established the China Office within its sales company, Fuji Xerox (China) Ltd., to handle operations such as quality control, technical support, marketing and intellectual property issues. Information beneficial to development, such as performance and quality that are demanded by customers, will be gathered in the Chinese market and swiftly conveyed to the product development function in Fuji Xerox of Shanghai and Japan to improve quality and speed of product development.

HR development for Chinese employees

Fuji Xerox reinforces its education for local personnel to foster executives and product development workforce.

For the past two years, the company has implemented the Challenge to Senior Management Program to foster future senior managers. Now, a new program has been launched to nurture local employees capable of leading product development operations. This program sends trainees to Fuji Xerox R&D Square, the development base in Yokohama, Japan, to have them work with Japanese product development personnel to acquire advanced skills. Fuji Xerox also provides a Japanese language education program to reinforce their communication skills for building a network among product development staff. Further, this program will foster product development leaders, which is a development management rank conventionally served by Japanese employees. Under this program, the company plans to reinforce the product development workforce at Fuji Xerox of Shanghai from the current 30 to 70 people over the next two years.

"China's economic development has been accelerating market expansion and increasing the demand for efficient office work, making it one of the most promising markets for Fuji Xerox," said Tamotsu Sakamoto, executive vice president and director of Fuji Xerox. "To seize this business opportunity, it is important to address market needs by having Chinese employees develop products for Chinese customers. Fuji Xerox started out as a Japanese sales company of U.S.-made copiers. However, since launching the first of our self-developed products in 1973, we have strived to achieve product development that suits the Japanese market. The latest reinforcement of China's product development function paves the way for eventually establishing China as the base for developing products not only for the Chinese market but also the markets of emerging economies."

Until now, Fuji Xerox has focused on manufacturing and marketing in its Chinese operations. The latest move to strengthen the product planning and development function in China will seek functional reinforcement throughout the entire value chain. The company intends to contribute to Chinese society through working on local personnel development, aiming at expanding its Chinese operations and developing products sought by the local population.

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