Sumitomo Metal Industries to Deliver XSoft's TabWorks Notebook Interface
for Windows to Japanese PC Market

PALO ALTO, Calif., December 19, 1994 - The XSoft division of Xerox
Corporation and Japan-based Sumitomo Metal Industries, Ltd. (SMI) today
announced that a contract has been signed for SMI to distribute TabWorks,
XSoft's successful notebook-style interface for Windows, through retail
sales channels in Japan. SMI, a main member of the Sumitomo Group, will
begin distributing TabWorks by the end of 1994.

TabWorks is pre-installed by Compaq Computer Corporation on all of its
non-server PCs. It is also sold separately in the U.S. through the direct
telemarketing channels of both XSoft and Compaq.

TabWorks provides a simple and intuitive way for Windows users to organize
work and manage their personal documents. An enhancement to the Windows
Program Manager, it is designed to look and function like a three-ring
notebook, using familiar components like tabs, pages, and a dynamic Table
of Contents to manage icons that represent files and documents. TabWorks
is available in 12 national languages.

In the past five years PC software shipments have swelled more than 200
percent in Japan, making it one of the most explosive growth sectors in
the world. During this time, Windows has gained over 40 percent share in
PC packaged software sales, compared to a decline in DOS-based software
sales. Personal computers are beginning to move into homes in Japan, as
they are in the U.S., and ease-of-use is one of the important factors
driving this expansion.

"PC users in Japan are searching for easier, more intuitive ways to manage
their programs, files and documents, without sacrificing performance or
price," stated Masao Tatsuwaki, deputy general manager of SMI. "TabWorks
has gained rapid acceptance in the U.S. by providing this functionality.
With TabWorks, Sumitomo will now provide PC users in Japan the opportunity
to work with their computers in a more intuitive and familiar way than
ever before."

David McQuilkin, Asia Pacific regional sales manager for XSoft, stated,
"SMI is an important partner for XSoft in delivering TabWorks to the
burgeoning Windows market in Japan. They have a broad knowledge of the
software industry and have demonstrated impressive growth in software
sales over the last few years. We are extremely pleased that Sumitomo sees
the potential of TabWorks to become the ease-of-use standard for Windows
PCs in Japan."

TabWorks lets the organizational habits and needs of the individual user
supersede the structure of the computer. Built around the familiar and
intuitive notebook metaphor, TabWorks allows users to organize their work
in any way that makes sense to them - by project, function, or other
structure preferences. Documents and applications are easily and quickly
accessible on the pages of the user's personalized notebook, and TabWorks
can launch them automatically. By giving the user direct document access,
TabWorks eliminates the need for the user to know where a document exists
in the directory structure or even what application is used to run it.

The development of TabWorks is based on research completed in 1987 by
Stuart Card and Austin Henderson of the Xerox Palo Alto Research Center
(PARC). They published a white paper entitled "Catalogues: A Metaphor for
Computer Application Delivery," which presented the concept of using the
notebook metaphor for the delivery of application software and contains
patents based on this research.

Sumitomo Metal Industries, Ltd.

Founded in 1897, Sumitomo Metal Industries, Ltd. (SMI) is headquartered in
Osaka and Tokyo. It is a main member of the Sumitomo Group, which is
comprised of 30 companies. Within SMI's diversified business is the
Systems Engineering Division (SED), which publishes, resells and
distributes a variety of PC-based application software products. TabWorks
will be sold mainly through its three PC distributors--SoftBank,
SoftwareJAPAN and Catena. SED also has nine subsidiaries in systems
integration, computer sales and network services.

XSoft

Headquartered on a campus with PARC, the renowned Xerox research center in
Palo Alto, Calif., the XSoft division of Xerox provides software that
improves the way people create and use documents to capture, manage and
communicate ideas and information.

The company develops and markets a broad range of products that support its
vision of an Open Document Environment. They include document management
and workflow solutions, user-interface utilities, office productivity
packages, content-based search and retrieval systems, and
structured-document publishing applications. In addition, XSoft enables
workgroup collaboration through a series of shared document services
products. The company also offers extensive product support, training and
consulting services. XSoft's products and services are available on
multiple operating systems, networks, and computer platforms. They are
sold through a worldwide network of direct sales and reseller partners.

XSoft
3400 Hillview Avenue
XSoft Palo Alto, California 94304
800-428-2995,  fax 415-813-7499

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