Tempstaff and Fuji Xerox to Begin Deliberation on
Acquisition and Transfer of Shares of
Fuji Xerox Career Net

1. Background
   Since its establishment in 1973, Tempstaff has been steadily expanding its business, mainly in the area of clerical temporary staffing and placement services.
   
   The company is currently a wholly owned subsidiary of Temp Holdings Co., Ltd., the parent company of the corporate group, Temp Group.
   
   As the leading company in the staffing services industry, Temp Group seeks further growth, recognizing the critical need to expand both the scope and scale of operations in order to meet the needs of clients and employment seekers.
   
   Fuji Xerox launched itself into the temporary staffing market in 1988 with the establishment of Fuji Xerox Career Net. The company has since provided high quality services to numerous corporations including Fuji Xerox and affiliated firms. Recently, however, pressure from corporate clients for further improvements in service quality and a faster response time has been mounting as competition intensifies, which has spurred the company to review its future business development plans.
   
   Against this backdrop and in order to meet expectations from corporate clients and employment seekers for more finely tuned services, Tempstaff and Fuji Xerox have reached a basic agreement to begin deliberations premised on the acquisition and transfer of outstanding shares of Fuji Xerox Career Net.
   By combining the accumulated operational expertise of Fuji Xerox Career Net with Temp Group's nationwide sales network and capacity to attract employment seekers, the two firms are confident that this agreement, once finalized, will put both in a better position to provide higher quality services to their clients.
   
   
2. Overview of Fuji Xerox Career Net
   

   (1) Trade name	Fuji Xerox Career Net Co., Ltd.
   (2) Description of business	Temporary staffing service/Outsourcing/ Placement service/Security
   (3) Date of establishment	May 21, 1988
   (4) Head office location	3-3-3 Akasaka, Minato-ku, Tokyo
   (5) Representative	Masao Uenishi, President
   (6) Capital	300 million yen
   (7) Total assets	2,380 million yen
   (8) Number of employees	178 (as of April 2008)
   (9) Shareholder	Fuji Xerox (100%)
   (10) Sales	12,304 million yen

   Note:

   (6), (7) and (10) are figures for the fiscal year ended March 2008

   
   
3. Future Developments
   Tempstaff and Fuji Xerox will proceed in good faith with the deliberations to conclude the acquisition and transfer of shares. Further notification will promptly forthcoming upon the agreement of both firms on such acquisition and transfer of shares.
   
   
4. Media Contact
   PR Group, Corporate Communications
   Fuji Xerox Co., Ltd.
   TEL: 03-6271-5120 (direct)