Fuji Xerox and Microsoft Announce Broad Patent Agreement

TOKYO, and REDMOND, Wash. — March 22, 2007 — Fuji Xerox Co. Ltd. (Fuji Xerox) and Microsoft Corp. announced a broad patent agreement for the purpose of allowing access to each company’s respective patent portfolios and to accelerate research and development. Fuji Xerox, which is owned by FUJIFILM Holdings Corporation and Xerox Corporation, is a leading investor in research and development relating to document management systems and maintains a broad patent portfolio, including patents in the United States and in Japan. Like Fuji Xerox, Microsoft has a long history of R&D and maintains many patents related to software and computer hardware innovations.

Through the agreement, Fuji Xerox will obtain access to Microsoft patents for Fuji Xerox’s existing and future product lines, including products that incorporate proprietary source and open source software, such as Linux. Likewise, Microsoft will gain access to Fuji Xerox patents for Microsoft’s existing and future proprietary product lines, including Microsoft® Office. The agreement contains monetary and nonmonetary provisions that allow both companies to receive compensation from their patent portfolios. As with most commercial transactions, the terms of the agreement are not being disclosed at this time.

“We are pleased to be able to reach a mutually beneficial broad patent agreement with Microsoft that respects for each company’s patent portfolio, encourages greater interoperability and provides valuable protection for the customers of each company’s products and services,” said Kiyoshi Saito, senior vice president of Fuji Xerox Co. Ltd.

“Both Fuji Xerox and Microsoft have a strong commitment to innovation, and the broad patent agreement will give us both the freedom to continue developing and building technologies that will ultimately work better together,” said Brad Smith, senior vice president, general counsel and corporate secretary of Microsoft. “This agreement is an example of our desire to share our innovations with other companies and build a stronger IT ecosystem through access to intellectual property.”

About Fuji Xerox Co., Ltd.

Fuji Xerox, a 75/25 joint venture between FUJIFILM Holdings Corporation and Xerox Corporation, is a leading provider of document management systems throughout Japan and Asia Pacific regions and designs and manufactures multifunction devices and color printing systems for Xerox worldwide. Fuji Xerox provides business solutions by enhancing the management and utilization of documents, from analog and digital data to graphics and movies, aimed at increasing business and corporate quality through the creation and circulation of knowledge. Fuji Xerox’s operations include the office products, office printer, production services and office services businesses. Xerox® is a trademark of XEROX CORPORATION.

About Microsoft

Founded in 1975, Microsoft (Nasdaq “MSFT”) is the worldwide leader in software, services and solutions that help people and businesses realize their full potential. Microsoft has established a solid record of collaborating with other technology innovators and has entered into many patent licensing and interoperability agreements with leading technology companies that include Cisco Systems Inc., Fujitsu, NEC, Novell, Nortel Networks, Siemens AG, SAP AG, Seiko Epson and Toshiba, in addition to business and technical collaboration agreements with open source companies Novell, XenSource and Zen.

Microsoft is a registered trademark of Microsoft Corp. in the United States and/or other countries.

The names of actual companies and products mentioned herein may be the trademarks of their respective owners.

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