Ownership Submission
FORM 4
Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP OF SECURITIES

Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Section 17(a) of the Public Utility Holding Company Act of 1935 or Section 30(h) of the Investment Company Act of 1940
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(Print or Type Responses)
1. Name and Address of Reporting Person *
FARREN J MICHAEL
  2. Issuer Name and Ticker or Trading Symbol
XEROX CORP [XRX]
5. Relationship of Reporting Person(s) to Issuer
(Check all applicable)
_____ Director _____ 10% Owner
__X__ Officer (give title below) _____ Other (specify below)
Vice Pres. & General Counsel
(Last)
(First)
(Middle)
800 LONG RIDGE ROAD, P. O. BOX 1600
3. Date of Earliest Transaction (Month/Day/Year)
01/02/2007
(Street)

STAMFORD, CT 06904
4. If Amendment, Date Original Filed(Month/Day/Year)
6. Individual or Joint/Group Filing(Check Applicable Line)
_X_ Form filed by One Reporting Person
___ Form filed by More than One Reporting Person
(City)
(State)
(Zip)
Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned
1.Title of Security
(Instr. 3)
2. Transaction Date (Month/Day/Year) 2A. Deemed Execution Date, if any (Month/Day/Year) 3. Transaction Code
(Instr. 8)
4. Securities Acquired (A) or Disposed of (D)
(Instr. 3, 4 and 5)
5. Amount of Securities Beneficially Owned Following Reported Transaction(s)
(Instr. 3 and 4)
6. Ownership Form: Direct (D) or Indirect (I)
(Instr. 4)
7. Nature of Indirect Beneficial Ownership
(Instr. 4)
Code V Amount (A) or (D) Price
Common Stock               2,050.69 I Employee Stock Ownership Plan
Incentive Stock Rights               33,000 D  
Common Stock 01/30/2007   M   70,100 A $ 0 (2) 108,255 D  
Common Stock 01/30/2007   S   70,100 D $ 17.2 38,155 D  

Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly.
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Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned
(e.g., puts, calls, warrants, options, convertible securities)
1. Title of Derivative Security
(Instr. 3)
2. Conversion or Exercise Price of Derivative Security 3. Transaction Date (Month/Day/Year) 3A. Deemed Execution Date, if any (Month/Day/Year) 4. Transaction Code
(Instr. 8)
5. Number of Derivative Securities Acquired (A) or Disposed of (D)
(Instr. 3, 4, and 5)
6. Date Exercisable and Expiration Date
(Month/Day/Year)
7. Title and Amount of Underlying Securities
(Instr. 3 and 4)
8. Price of Derivative Security
(Instr. 5)
9. Number of Derivative Securities Beneficially Owned Following Reported Transaction(s)
(Instr. 4)
10. Ownership Form of Derivative Security: Direct (D) or Indirect (I)
(Instr. 4)
11. Nature of Indirect Beneficial Ownership
(Instr. 4)
Code V (A) (D) Date Exercisable Expiration Date Title Amount or Number of Shares
Stock Option $ 46.875             01/01/1999(1) 12/31/2008 Common Stock 19,782   19,782 D  
Stock Option $ 59.4375 01/02/2007   H(4)     1,166 01/01/2000(1) 12/31/2006 Common Stock 1,166 $ 0 (2) 0 D  
Stock Option $ 47.5             03/01/2003 12/31/2009 Common Stock 5,836   5,836 D  
Stock Option $ 21.7812             01/01/2005 12/31/2009 Common Stock 35,000   35,000 D  
Stock Option $ 10.365             01/01/2003(1) 12/31/2011 Common Stock 70,100   70,100 D  
Stock Option $ 7.885 01/30/2007   M     70,100 01/01/2004 12/31/2012 Common Stock 70,100 $ 0 (2) 0 D  
Stock Option $ 13.685             01/01/2005(1) 12/31/2011 Common Stock 55,000   55,000 D  
Performance Shares $ 0 (2)             08/08/1988(2) 08/08/1988(2) Common Stock 17,667   17,667 (3) D  

Reporting Owners

Reporting Owner Name / Address Relationships
 Director  10% Owner  Officer  Other
FARREN J MICHAEL
800 LONG RIDGE ROAD
P. O. BOX 1600
STAMFORD, CT 06904
      Vice Pres. & General Counsel  

Signatures

 Karen Boyle, Attorney-In-Fact   01/31/2007
**Signature of Reporting Person Date

Explanation of Responses:

* If the form is filed by more than one reporting person, see Instruction 4(b)(v).
** Intentional misstatements or omissions of facts constitute Federal Criminal Violations. See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
(1) Options vest over three years, 33.3% per year beginning in year shown.
(2) Not Applicable
(3) These performance shares were earned based on achievement of specific annual performance criteria that are not tied solely to the market price of Issuer securities. Performance shares, to the extent earned, are scheduled to vest three years from their respective grant date.
(4) Expiration of unexercised stock options.

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