Xerox Technology to Fuel Espresso Book Machine;Worldwide Agreement Includes Global Marketing and Sales Support

Xerox and On Demand Books will jointly market and sell, on a worldwide basis, theXerox 4112™ Copier/Printertogether with the Espresso Book Machine - a fully integrated solution that prints, binds and trims books with full color covers on demand in retail locations and libraries. The Espresso Book Machine can produce paperbacks in variable combinations of trim sizes between 4.5" x 5.0" and 8.25" x 10.5" for a production cost less than one cent per page.

With the Xerox 4112, the Espresso Book Machine produces a 300-page book in less than four minutes and has the capacity to print more than 40,000 paperback books per year.

"Xerox is a natural fit for On Demand Books and the Espresso Book Machine," said Dane Neller, CEO, On Demand Books. "Their solutions, industry leadership, innovative printing technology and worldwide sales and marketing footprint will help us reach our goal - providing book enthusiasts fast and affordable access to millions of digital titles in multiple languages."

The Espresso Book Machine uses EspressNet, a proprietary and copyrighted software system that connects the device to a vast network of 3.3 million titles obtained with the approval of the publishers. EspressNet assures the security of publishers' titles, tracks all jobs, and provides payments to publishers. Content owners retain full rights and control of their digital files.

"Xerox has provided a variety of digital book solutions for nearly 20 years," saidEric Armour, president, Global Business Group, Xerox Corporation. "Working with On Demand Books, we can apply Xerox technology to meet the incredible opportunities that exist within this industry."

Availability

A phased launch is underway in North America.

About On Demand Books, LLC

On Demand Books was co-founded in 2003 by Jason Epstein, former editorial director of Random House and Dane Neller, former CEO of Dean & DeLuca. The first beta machine was installed at the World Bank InfoShop in Washington, D.C. where it printed thousands of World Bank publications. The Espresso Book Machine was named toTime Magazine's"Best Inventions of 2007" list.

Made in the U.S., Espresso Book Machines are environmentally friendly green machines. For more information visit:www.ondemandbooks.com.

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