Scitex Digital Printing and


(NYSE:XRX) today announced that they have signed a letter of intent to complete a reseller agreement.

The two companies will ally to market the

Scitex VersaMark

series continuous feed, monochrome, spot-color and full-color web presses.

This will enable SDP, a fully-owned subsidiary of

Scitex Corporation

(Nasdaq:SCIX), to take advantage of Xerox's worldwide marketing, distributing and logistic support network.

Initially Xerox will market the VersaMark press in Europe. In the second half of the year it will commence marketing it in North America.

Xerox Europe has already installed the first VersaMark press for the Swedish postal service.

The VersaMark, launched in May 2000, offers full-process color at enormous print speeds of more than 2,000 pages a minute. Supporting 100% variable data, it extends the capabilities of the VersaMark MPS (Modular Printing System), introduced in 1999, which provides only black plus two spot-colors.

Scitex says the VersaMark is used by organizations that need to produce documents in the millions, such as bills or statements.

SDP's sales increased to $43.1 million in the fourth quarter of 2000, 11% more than the parallel quarter in 1999. Annual sales rose to $152 million, 6% higher than 1999. Fourth-quarter operating profit was $4.6 million, contributing 10.6% of Scitex's aggregate sales.