The move is seen as significant in the context of Kodak (KPGs joint parent), expanding its own digital printing offerings.

It acquired Scitex Digital Printing two weeks ago and is widely expected to increase its stake in NexPress, the joint venture with Heidelberg that is under review.

Both companies have determined that the time is right to pursue alternative strategies, said John Schloff, KPG vice president digital printing. KPG has a full range of digital solutions for customers, and we remain committed to widening those options as our customers transition to, or expand, digital technologies in their workflows.

Xerox will ensure ongong support for those customers who purchased through KPG and we will continue to look at ways to expand the availability of our products, added Valerie Blauvelt, vice president of marketing at Xerox Production Systems.

The reseller agreement ends on January 1 2004, but Xerox will continue to offer KPGs Matchprint Professional Server as a front-end for the DocuColor 12.