Solimar Systems and Xerox Sign Partnership Agreement

SAN DIEGO, CA, August 2, 2006 - Solimar Systems, Inc., and Xerox Corporation (NYSE:XRX) today announced a partnership that will couple Xerox consulting and managed services with Solimar's enterprise output management software, to help organizations improve the management and delivery of transactional document communications.

"Today large enterprises are tasked with finding ways to replace manual operations with automation to increase productivity and lower costs," said Howard Holley, vice president, Document Outsourcing and Communication Services, Xerox Global Services. "The product suite from Solimar not only delivers efficient automation for our clients, but also allows Xerox to add value as it manages clients' total output from end to end."

Through the partnership, Xerox Global Services will resell and deploy Solimar software, allowing clients from a wide range of industries - including financial services, insurance, healthcare, education, government, manufacturing and utilities - to enhance digital document output, production and distribution of customer communications, such as statements, bills, invoices, policies, quotes, proposals, enrollment kits, letters, manuals and general correspondence.

Solimar and Xerox share a long history of solving business problems. They have cooperatively implemented thousands of successful client solutions over the past 15 years. This new formal partnership highlights Xerox's commitment to delivering advanced workflow and electronic delivery technologies to its clients.

"As a partner, we look forward to a long and successful alliance with Xerox," said Drew Sprague, Solimar's President and CEO. "We strongly believe in the rich Xerox tradition and its established market leading experience in delivering document solutions."