Fuji Xerox to Make Proactive Use of Environmentally Friendly Materials for its Printer/Copy Paper, and
to Increase the Recycled Pulp Utilization to 40% by 2011

Also Promotes FSC-Certified Paper Products and Examins the Use of Forest Thinnings

March 10, 2009

TOKYO, March 10, 2009 — With the aim of making its printer/copy paper more environmentally friendly, Fuji Xerox Co., Ltd. has set the following two targets: (1) to increase the rate of recycled pulp used in production from the present level of about 31 percent up to 40 percent; and (2) to raise the proportion of sales of FSC-certifiedNote 1 products from the present 17 percent to 23 percent of all paper sales.

Fuji Xerox-branded recycled printer/copy paper is currently made using recycled pulp at a rate of 10 to 70 percent. The company is committed to further increasing this figure while conducting investigations aimed at developing 100-percent recycled paper for printers and copy machines by fiscal 2010, with an eye to commercialization in fiscal 2011Note 2. This represents one of the measures to be taken by Fuji Xerox in response to the revision of Japan's Law on Promoting Green PurchasingNote 3 which takes effect in April 2009.

To increase the number of products that meet the requirements of this law in addition to the recycled paper, Fuji Xerox will examine the use of other environmentally friendly materials, such as forest thinnings. Utilization of forest thinnings, however, involves certain challenges including the clarification of their definition, procurement channels, and establishment of technologies to incorporate them in printer/copy paperNote 4. Fuji Xerox, in cooperation with paper companies, will proceed with R&D with the goal of utilization of forest thinnings in fiscal 2011.

On the other hand, Fuji Xerox provides other eco-conscious printer/copy paper, FSC-certified products, other than recycled paper. They include resource-saving “SP” lightweight paper that weighs only 60 grams per square meter, “FR” environmentally-balanced paper, and “C2” that can be used for both monochrome and color printing. The company will step up sales efforts for these products as well as continue to use wood chips from its own FSC-certified forest located in New ZealandNote 5. These wood chips are currently being used in “FR” paper. Using other FSC-certified materials, the company will develop new FSC-certified paper in order to increase the percentage of FSC-certified products sold to 23 percent, up from 17 percent, by fiscal 2011.

Fuji Xerox will continue to provide its customers with environmentally friendly printer/copy paper made from a combination of recycled pulp and virgin pulp derived only from planted forests and certified forests.

Note 1
FSC certification is a forest certification system by the Forest Stewardship Council (FSC) established in 1993 with the aims of eliminating environmental destruction caused by illegal deforestation and trading, as well as securing timber while protecting forests.
Note 2
Fuji Xerox will check the total supply amount of recycled pulp in the market and verify that there will be a stable supply of the pulp before it implements this plan.
Note 3
Indicators will be set for the comprehensive evaluation of the quality of copy paper, including the proportion of recycled pulp, the proportion of pulp from FSC-certified forest materials and forest thinning, whiteness of paper and per-unit paper weight. Based on the total score from these criteria, products will be judged if they are compliant to the law or not.
Note 4
Forest thinning is generally practiced on coniferous trees with needled leaves. The fibers of these trees are hard and sharply pointed and generally unsuitable for printer/copy paper, which is usually made from the pulp of broad-leaved trees.
Note 5
Southland Plantation Forest Company of New Zealand Limited (SPFL), in which Fuji Xerox invests, is located in Invercargill, Southland in New Zealand. It was established in 1992 by Oji Paper Co., Ltd. and ITOCHU Corporation, with Fuji Xerox taking a stake in 1996. Shipping of chips by this company to Fuji Xerox for use in its own products began in 2005.