##### Table of Contents









SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549




---

FORM 10-Q



---

(Mark One)



| |     |                                                                                         
| | --- | ----------------------------------------------------------------------------------------
| | [X] | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
	SECURITIES EXCHANGE ACT OF 1934
|
| |     | For the quarterly period ended October 1, 1999.                                         






| |       |                                                                                          
| | ----- | -----------------------------------------------------------------------------------------
| | [   ] | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
	SECURITIES EXCHANGE ACT OF 1934
|
| |       | For the transition period from 
	to                                                      

Commission File Number 1-15139



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LANIER WORLDWIDE, INC.

(Exact Name of Registrant as Specified in Its
Charter)


|                                                                        |  |                                                
|----------------------------------------------------------------------- |  | -----------------------------------------------
|                                                                       
|                                                                       
|                                                                       
|                                                                       
|Delaware(State or Other Jurisdiction of
	Incorporation or Organization) |  | 59-2606737(I.R.S. Employer
	Identification No.)

2300 Parklake Drive, Atlanta, Georgia 30345

(Address of Principal Executive Offices)


Registrants Telephone Number, including Area Code 770-496-9500




Former Name, Former Address and Former Fiscal
Year, if Changed Since Last Report.


Indicate by check X whether the registrant: (1) has filed
all reports required to be filed by Section 13 or 15(d) of
the Securities Exchange Act of 1934 during the preceding
12 months (or for such shorter period that the registrant
was required to file such reports), and (2) has been subject
 to such filing requirements for the past 90 days.

Yes [   ] No [X]

Number of shares of common stock outstanding as of the close of
business on November 18, 1999: 87,851,196



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---

TABLE OF CONTENTS



|           |                                                                                               |                                                                      |  |  |  |  |  | 
|---------- | --------------------------------------------------------------------------------------------- | -------------------------------------------------------------------- |  |  |  |  |  | 
|PART I    
|           | Item 1. Financial Statements                                                                 
|           |                                                                                               | CONSOLIDATED BALANCE SHEETS                                         
|           |                                                                                               | CONSOLIDATED STATEMENTS OF INCOME                                   
|           |                                                                                               | CONSOLIDATED STATEMENTS OF CASH FLOWS                               
|           |                                                                                               | NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS OCTOBER 1, 1999
|           | Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations
|           | Item 3. Quantitative and Qualitative Disclosures About Market Risk                           
|PART II   
|           | Item 5. Other Information                                                                    
|           |                                                                                               | UNAUDITED PRO FORMA CONSOLIDATED FINANCIAL STATEMENTS               
|           |                                                                                               | UNAUDITED PRO FORMA CONSOLIDATED BALANCE SHEET                      
|           |                                                                                               | UNAUDITED PRO FORMA CONSOLIDATED STATEMENT OF INCOME                
|           | Item 6. Exhibits and Reports on Form 8-K                                                     
|SIGNATURES



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PART I




Item  1.  Financial Statements

LANIER WORLDWIDE, INC. AND SUBSIDIARIES






CONSOLIDATED BALANCE SHEETS


|                                   |                                                                                                                                          |                                          |   |           |           |  |   |         |           | 
|---------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------- | - | --------- | --------- |  | - | ------- | --------- | 
|                                   |                                                                                                                                          | October 1,                               |   | July 2,  
|                                   |                                                                                                                                          | 1999                                     |   | 1999     
|                                   |                                                                                                                                          |                                          |   |          
|                                   |                                                                                                                                          | (Unaudited)                              |   | (Audited)
|                                   |                                                                                                                                          |                                         
|                                   |                                                                                                                                          | (In thousands)                          
|                                  
|                                  
|                                  
|                                  
|ASSETS                            
|                                  
|                                  
|                                  
|                                  
|Current Assets:                    |                                                                                                                                          |                                          |   |           |           |  |   |        
|                                  
|                                  
|                                  
|                                  
|                                   | Cash and cash equivalents                                                                                                                |                                          | $ | 14,855    |           |  | $ | 18,209  |          
|                                  
|                                  
|                                  
|                                  
|                                   | Trade receivables                                                                                                                        |                                          |   | 318,284   |           |  |   | 348,604 |          
|                                  
|                                  
|                                  
|                                  
|                                   | Receivables from Harris                                                                                                                  |                                          |   | 181,790   |           |  |   | 194,521 |          
|                                  
|                                  
|                                  
|                                  
|                                   | Inventories                                                                                                                              |                                          |   | 197,245   |           |  |   | 166,404 |          
|                                  
|                                  
|                                  
|                                  
|                                   | Prepaid expenses                                                                                                                         |                                          |   | 12,924    |           |  |   | 17,107  |          
|                                  
|                                  
|                                  
|                                  
|                                   | Deferred income taxes                                                                                                                    |                                          |   | 55,931    |           |  |   | 39,276  |          
|                                   |                                                                                                                                          |                                          |   |           |           |  |   |        
|                                   |                                                                                                                                          | Total current assets                     |   |           | 781,029   |  |   |         | 784,121   | 
|                                  
|                                  
|                                  
|                                  
|Other Assets:                      |                                                                                                                                          |                                          |   |           |           |  |   |        
|                                  
|                                  
|                                  
|                                  
|                                   | Rental equipment, less allowance for depreciation ($219,430 at
	October 1, 1999 and $205,232 at July 2, 1999)                            |                                          |   | 140,173   |           |  |   | 140,718 |          
|                                  
|                                  
|                                  
|                                  
|                                   | Property, plant and equipment, less allowance for depreciation
	($79,466 at October 1, 1999 and $76,053 at July 2,
	1999)                |                                          |   | 41,554    |           |  |   | 42,755  |          
|                                  
|                                  
|                                  
|                                  
|                                   | Notes receivables  net                                                                                                                  |                                          |   | 217,224   |           |  |   | 203,657 |          
|                                  
|                                  
|                                  
|                                  
|                                   | Intangibles, less accumulated amortization ($40,870 at
	October 1, 1999 and $38,610 at July 2, 1999)                                     |                                          |   | 124,712   |           |  |   | 125,504 |          
|                                  
|                                  
|                                  
|                                  
|                                   | Other                                                                                                                                    |                                          |   | 43,024    |           |  |   | 40,953  |          
|                                   |                                                                                                                                          |                                          |   |           |           |  |   |        
|                                   |                                                                                                                                          | Total other assets                       |   |           | 566,687   |  |   |         | 553,587   | 
|                                   |                                                                                                                                          |                                          |   |           |           |  |   |        
|                                   |                                                                                                                                          | Total assets                             |   | $         | 1,347,716 |  |   | $       | 1,337,708 | 
|                                   |                                                                                                                                          |                                          |   |           |           |  |   |        
|                                  
|                                  
|                                  
|                                  
|LIABILITIES AND STOCKHOLDER EQUITY
|                                  
|                                  
|                                  
|                                  
|Current Liabilities:               |                                                                                                                                          |                                          |   |           |           |  |   |        
|                                  
|                                  
|                                  
|                                  
|                                   | Notes payable                                                                                                                            |                                          | $ | 137,840   |           |  | $ | 138,011 |          
|                                  
|                                  
|                                  
|                                  
|                                   | Trade payables                                                                                                                           |                                          |   | 73,917    |           |  |   | 86,815  |          
|                                  
|                                  
|                                  
|                                  
|                                   | Retirement plan obligations                                                                                                              |                                          |   | 41,581    |           |  |   | 38,964  |          
|                                  
|                                  
|                                  
|                                  
|                                   | Accrued compensation                                                                                                                     |                                          |   | 33,088    |           |  |   | 39,066  |          
|                                  
|                                  
|                                  
|                                  
|                                   | Accrued interest and sundry taxes                                                                                                        |                                          |   | 19,453    |           |  |   | 21,772  |          
|                                  
|                                  
|                                  
|                                  
|                                   | Other accrued items                                                                                                                      |                                          |   | 37,115    |           |  |   | 33,610  |          
|                                  
|                                  
|                                  
|                                  
|                                   | Unearned service income                                                                                                                  |                                          |   | 50,301    |           |  |   | 57,898  |          
|                                  
|                                  
|                                  
|                                  
|                                   | Income taxes                                                                                                                             |                                          |   | 19,710    |           |  |   | 15,460  |          
|                                  
|                                  
|                                  
|                                  
|                                   | Long-term debt-current portion                                                                                                           |                                          |   | 2,098     |           |  |   | 2,582   |          
|                                   |                                                                                                                                          |                                          |   |           |           |  |   |        
|                                   |                                                                                                                                          | Total current liabilities                |   |           | 415,103   |  |   |         | 434,178   | 
|                                  
|                                  
|                                  
|                                  
|Other Liabilities:                 |                                                                                                                                          |                                          |   |           |           |  |   |        
|                                  
|                                  
|                                  
|                                  
|                                   | Deferred income taxes                                                                                                                    |                                          |   | 31,937    |           |  |   | 16,170  |          
|                                  
|                                  
|                                  
|                                  
|                                   | Long-term debt                                                                                                                           |                                          |   | 6,583     |           |  |   | 4,622   |          
|                                  
|                                  
|                                  
|                                  
|Stockholder Equity:                |                                                                                                                                          |                                          |   |           |           |  |   |        
|                                   | Preferred stock, no par value: authorized 1,000,000 shares,
	issued  none                                                               |                                          |   |           |           |  |   |         |          
|                                  
|                                  
|                                  
|                                  
|                                   | Common Stock, $1.00 par value, 1,000,000 shares authorized;
	issued and outstanding 41,893 shares at October  1, 1999 and
	 July 2, 1999 |                                          |   | 42        |           |  |   | 42      |          
|                                  
|                                  
|                                  
|                                  
|                                   | Additional paid-in capital                                                                                                               |                                          |   | 329,679   |           |  |   | 329,679 |          
|                                  
|                                  
|                                  
|                                  
|                                   | Retained earnings                                                                                                                        |                                          |   | 596,274   |           |  |   | 586,556 |          
|                                  
|                                  
|                                  
|                                  
|                                   | Accumulated other comprehensive loss                                                                                                     |                                          |   | (31,902   | )         |  |   | (33,539 | )        
|                                   |                                                                                                                                          |                                          |   |           |           |  |   |        
|                                   |                                                                                                                                          | Total stockholder equity                 |   |           | 894,093   |  |   |         | 882,738   | 
|                                   |                                                                                                                                          |                                          |   |           |           |  |   |        
|                                   |                                                                                                                                          | Total liabilities and stockholder equity |   | $         | 1,347,716 |  |   | $       | 1,337,708 | 
|                                   |                                                                                                                                          |                                          |   |           |           |  |   |        

1



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##### Table of Contents



LANIER WORLDWIDE, INC. AND SUBSIDIARIES






CONSOLIDATED STATEMENTS OF INCOME


|                   |                                     |                |         |             |       |  |         |         |        | 
|------------------ | ----------------------------------- | -------------- | ------- | ----------- | ----- |  | ------- | ------- | ------ | 
|                   |                                     |               
|                   |                                     | Quarter Ended 
|                   |                                     |               
|                   |                                     | October 1,     |         | October 2, 
|                   |                                     | 1999           |         | 1998       
|                   |                                     |                |         |            
|                   |                                     | (Unaudited)    |         | (Unaudited)
|                   |                                     |               
|                   |                                     | (In thousands)
|                  
|                  
|                  
|                  
|Revenue:           |                                     |                |         |             |       |  |         |        
|                  
|                  
|                  
|                  
|                   | Product sales and rentals           |                | $       | 168,504     |       |  | $       | 178,024 |       
|                  
|                  
|                  
|                  
|                   | Service income                      |                |         | 139,124     |       |  |         | 150,015 |       
|                  
|                  
|                  
|                  
|                   | Finance income                      |                |         | 10,317      |       |  |         | 9,185   |       
|                   |                                     |                |         |             |       |  |         |        
|                   |                                     |                | 317,945 |             |       |  | 337,224 |        
|                  
|                  
|                  
|                  
|Cost and Expenses: |                                     |                |         |             |       |  |         |        
|                  
|                  
|                  
|                  
|                   | Cost of product sales and rentals   |                |         | 118,695     |       |  |         | 115,814 |       
|                  
|                  
|                  
|                  
|                   | Cost of service                     |                |         | 76,890      |       |  |         | 85,264  |       
|                  
|                  
|                  
|                  
|                   | Selling and administrative expenses |                |         | 98,558      |       |  |         | 110,903 |       
|                  
|                  
|                  
|                  
|                   | Interest expense                    |                |         | 5,589       |       |  |         | 4,120   |       
|                  
|                  
|                  
|                  
|                   | Other  net                         |                |         | 2,466       |       |  |         | 15      |       
|                   |                                     |                |         |             |       |  |         |        
|                   |                                     |                | 302,198 |             |       |  | 316,116 |        
|                   |                                     |                |         |             |       |  |         |        
|                   | Income before income taxes          |                |         | 15,747      |       |  |         | 21,108  |       
|                  
|                  
|                  
|                  
|                   | Income taxes                        |                |         | 6,030       |       |  |         | 7,607   |       
|                   |                                     |                |         |             |       |  |         |        
|                   |                                     | Net Income     |         | $           | 9,717 |  |         | $       | 13,501 | 
|                   |                                     |                |         |             |       |  |         |        

2



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##### Table of Contents



LANIER WORLDWIDE, INC. AND SUBSIDIARIES






CONSOLIDATED STATEMENTS OF CASH FLOWS


|                                                      |                                    |                                        |                                           |                 |         |         |         |         |          |          |  
|----------------------------------------------------- | ---------------------------------- | -------------------------------------- | ----------------------------------------- | --------------- | ------- | ------- | ------- | ------- | -------- | -------- | -
|                                                      |                                    |                                       
|                                                      |                                    | For The Quarter Ended                 
|                                                      |                                    |                                       
|                                                      |                                    | October 1, 1999                        |                                           | October 2, 1998
|                                                      |                                    |                                        |                                           |                
|                                                      |                                    | (Unaudited)                            |                                           | (Unaudited)    
|                                                      |                                    |                                       
|                                                      |                                    | (In thousands)                        
|                                                     
|                                                     
|                                                     
|                                                     
|OPERATING ACTIVITIES:                                 |                                    |                                        |                                           |                 |         |         |         |        
|                                                     
|                                                     
|                                                     
|                                                     
|                                                      | Net income                         |                                        | $                                         | 9,717           |         |         | $       | 13,501  |         
|                                                     
|                                                     
|                                                     
|                                                     
|                                                      | Adjustments to Net Income:         |                                        |                                           |                 |         |         |         |         |         
|                                                     
|                                                     
|                                                     
|                                                     
|                                                      |                                    | Depreciation                           |                                           |                 | 25,792  |         |         |         | 27,484   |         
|                                                     
|                                                     
|                                                     
|                                                     
|                                                      |                                    | Amortization                           |                                           |                 | 2,261   |         |         |         | 2,128    |         
|                                                     
|                                                     
|                                                     
|                                                     
|                                                      | Changes in assets and liabilities: |                                        |                                           |                 |         |         |         |         |         
|                                                     
|                                                     
|                                                     
|                                                     
|                                                      |                                    | Trade receivables                      |                                           |                 | 20,054  |         |         |         | (8,898   | )       
|                                                     
|                                                     
|                                                     
|                                                     
|                                                      |                                    | Receivables from parent                |                                           |                 | 12,731  |         |         |         | 805      |         
|                                                     
|                                                     
|                                                     
|                                                     
|                                                      |                                    | Inventories                            |                                           |                 | (30,841 | )       |         |         | 3,027    |         
|                                                     
|                                                     
|                                                     
|                                                     
|                                                      |                                    | Prepaid expenses                       |                                           |                 | 2,112   |         |         |         | (17,391  | )       
|                                                     
|                                                     
|                                                     
|                                                     
|                                                      |                                    | Trade payables and accrued liabilities |                                           |                 | (15,072 | )       |         |         | 43,499   |         
|                                                     
|                                                     
|                                                     
|                                                     
|                                                      |                                    | Unearned service income                |                                           |                 | (7,597  | )       |         |         | 8,961    |         
|                                                     
|                                                     
|                                                     
|                                                     
|                                                      |                                    | Income taxes                           |                                           |                 | 3,362   |         |         |         | 3,827    |         
|                                                     
|                                                     
|                                                     
|                                                     
|                                                      |                                    | Other                                  |                                           |                 | (5,062  | )       |         |         | (1,381   | )       
|                                                      |                                    |                                        |                                           |                 |         |         |         |        
|                                                      |                                    |                                        | Net cash provided by operating activities |                 |         | 17,457  |         |         |          | 75,562   |  
|                                                     
|                                                     
|                                                     
|                                                     
|INVESTING ACTIVITIES:                                 |                                    |                                        |                                           |                 |         |         |         |        
|                                                     
|                                                     
|                                                     
|                                                     
|                                                      | Capital expenditures:              |                                        |                                           |                 |         |         |         |         |         
|                                                     
|                                                     
|                                                     
|                                                     
|                                                      |                                    | Cash paid for acquired business        |                                           |                 | (200    | )       |         |         | (168,288 | )       
|                                                     
|                                                     
|                                                     
|                                                     
|                                                      |                                    | Property, plant and equipment          |                                           |                 | (5,598  | )       |         |         | (6,210   | )       
|                                                     
|                                                     
|                                                     
|                                                     
|                                                      |                                    | Rental equipment                       |                                           |                 | (19,954 | )       |         |         | (11,701  | )       
|                                                      |                                    |                                        |                                           |                 |         |         |         |        
|                                                      |                                    |                                        | Net cash used in investing activities     |                 |         | (25,752 | )       |         |          | (186,199 | )
|                                                      |                                    |                                        |                                           |                 |         |         |         |        
|FINANCING ACTIVITIES:                                 |                                    |                                        |                                           |                 |         |         |         |        
|                                                     
|                                                     
|                                                     
|                                                     
|                                                      | Proceeds from borrowings           |                                        |                                           | 4,543           |         |         |         | 105,958 |         
|                                                     
|                                                     
|                                                     
|                                                     
|                                                      | Payments of borrowings             |                                        |                                           | (2,288          | )       |         |         | (4,675  | )       
|                                                      |                                    |                                        |                                           |                 |         |         |         |        
|                                                      |                                    |                                        | Net cash provided by financing activities |                 |         | 2,255   |         |         |          | 101,283  |  
|                                                     
|                                                     
|                                                     
|                                                     
|Effect of exchange rates on cash and cash equivalents |                                    |                                        | 2,686                                     |                 |         |         | (7,327  | )      
|                                                      |                                    |                                        |                                           |                 |         |         |         |        
|DECREASE IN CASH AND CASH EQUIVALENTS                 |                                    |                                        | (3,354                                    | )               |         |         | (16,681 | )      
|                                                     
|                                                     
|                                                     
|                                                     
|Cash and cash equivalents at beginning of year        |                                    |                                        | 18,209                                    |                 |         |         | 87,096  |        
|                                                      |                                    |                                        |                                           |                 |         |         |         |        
|CASH AND CASH EQUIVALENTS AT END OF QUARTER           |                                    | $                                      | 14,855                                    |                 |         | $       | 70,415  |        
|                                                      |                                    |                                        |                                           |                 |         |         |         |        

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##### Table of Contents



LANIER WORLDWIDE, INC. AND SUBSIDIARIES







NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS


OCTOBER 1, 1999


Note  A.  Basis of Presentation

On October 22, 1999, the Board of Directors of Harris
Corporation (Harris), the then sole stockholder of
Lanier Worldwide, Inc. (Lanier), declared a pro rata
distribution, effective 11:59 p.m., Atlanta time, on
November 5, 1999 of one share of Lanier common stock
(together with associated preferred stock purchase rights) for
each share of Harris common stock held by stockholders of record
of Harris at the close of business on November 1, 1999, to
effectuate the spin-off (the Spin-off) of Lanier as a
 separate public company. The Lanier shares distributed
constituted approximately 90% of the outstanding shares of Lanier
 common stock after the Spin-off. Harris retained approximately
10% of the outstanding shares of Lanier after the Spin-off.

The unaudited consolidated financial statements include the
accounts of Lanier, including certain subsidiaries partially or
wholly owned by Harris, that were transferred to Lanier prior to
the Spin-off.

The consolidated balance sheet as of October 1, 1999, the
consolidated statement of income and the consolidated statement
of cash flows for the quarter ending October 1, 1999 have
not been audited but have been prepared in conformity with the
accounting principles applied in the audited consolidated
financial statements for the fiscal year ending July 2, 1999
 contained in Laniers Registration Statement on
Form 10, as amended (Registration Statement). In
 the opinion of management, the financial statements include all
material adjustments necessary for a fair presentation. This
Form 10-Q should be read in conjunction with the audited
consolidated financial statements and notes included in the
Registration Statement.

Note  B.  Acquisition

In the first quarter of fiscal year 1999, Lanier acquired the
Copying Systems Division of the Agfa-Gevaert Group which is a
member of the Bayer Group, Leverkusen, Germany (the Agfa
Acquisition). The transaction was accounted for as a
purchase. The purchase price, which is subject to adjustment, was
 $168.3 million in cash. The purchase price exceeded the fair
value of net assets acquired by approximately $46 million, which
is being amortized on a straight-line basis over 20 years.
The results of the Agfa Acquisition are included in the
accompanying unaudited consolidated financial statements from the
 date of acquisition.

Note  C.  Long Term Debt

Retention of Indebtedness of Lanier Subsidiaries

In connection with the Spin-off, all inter-company accounts
payable to Harris were eliminated and forgiven on
November 5, 1999. Further, Lanier retained existing
indebtedness totaling $146.5 million. Lanier intends to replace
approximately half of the retained indebtedness with borrowings
under the new credit facility (Credit Facility)
described below. Under the credit agreement noted below, Lanier
has the right to maintain a total of $150 million of debt outside
 of the Credit Facility.

Bank Credit Agreement

On October 20, 1999, Lanier entered into a $900 million
Credit Facility with three lead agent banks. The $900 million
Credit Facility consists of a $450 million five-year revolver, a
$250 million two-year term loan and a $200 million 364-day
revolver.

On November 4, 1999, the credit agreement was amended to add
 the syndicate of banks. On that day, Lanier drew $590 million of
 debt, consisting of $250 million from the two-year loan and $340
 million from the five-year revolver. Proceeds were used to make
a $545 million cash payment to Harris, to pay Harris $22.8
million for the transfer of ownership in two subsidiaries which
had $22.8 million of net cash, and for working capital needs.

4



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LANIER WORLDWIDE, INC. AND SUBSIDIARIES


NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
  (Continued)

In addition to the $900 million Credit Facility, Lanier has an
existing European factoring facility totaling $100 million, which
 had $22.7 million outstanding as of October 1, 1999.

Note  D.  Accumulated Other Comprehensive
Loss

Accumulated other comprehensive loss relates solely to foreign
currency translation adjustments related to the companys
foreign subsidiaries.

5



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##### Table of Contents








|        |                                                                                       
|------- | --------------------------------------------------------------------------------------
|Item 2. | Managements Discussion and Analysis of Financial
	Condition and Results of Operations

MANAGEMENT DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION

AND RESULTS OF OPERATIONS FOR THE QUARTER ENDED
OCTOBER 1, 1999


Overview

On October 22, 1999, the Board of Directors of Harris
Corporation (Harris), the then sole stockholder of
Lanier Worldwide, Inc. (Lanier), declared a pro rata
distribution, effective 11:59 p.m., Atlanta time, on
November 5, 1999 of one share of Lanier common stock
(together with associated preferred stock purchase rights) for
each share of Harris common stock held by stockholders of record
of Harris at the close of business on November 1, 1999 to
effectuate the spin-off (the Spin-off) of Lanier as a
 separate public company. The Lanier shares distributed
constituted approximately 90% of the outstanding shares of Lanier
 common stock after the Spin-off. In addition, Harris retained
approximately 10% of the outstanding shares of Lanier after the
Spin-off.

The consolidated balance sheet as of October 1, 1999, the
consolidated statement of income and the consolidated statement
of cash flows for the quarter ending October 1, 1999 have
not been audited but have been prepared in conformity with the
accounting principles applied in the audited consolidated
financial statements for the fiscal year ending July 2, 1999
 contained in Laniers Registration Statement on
Form 10, as amended (Registration Statement). In
 the opinion of management, this information includes all
material adjustments necessary for a fair presentation. This
Form 10-Q should be read in conjunction with the audited
consolidated financial statements and notes included in the
Registration Statement.

Forward-Looking Statements

This document contains forward-looking statements that reflect
Laniers current assumptions and estimates of future
performance and economic conditions. Such statements are made in
reliance upon the safe harbor provisions of Section 27A of
the Securities Act of 1933, as amended and Section 21E of
the Securities Exchange Act of 1934, as amended. Lanier may make
these statements directly in this document or incorporate such
statements into this document by reference to other documents.
Lanier may also include statements pertaining to periods
following October 1, 1999. You may identify many of these
statements by words such as believes,
expects, anticipates,
projects, estimates, should
result or are expected to, or similar
expressions. Any forward-looking statements are subject to risks
and uncertainties that may cause actual results and future trends
 to differ materially from those projected, stated or implied by
the forward-looking statements.

Laniers results and the accuracy of the forward-looking
statements could be affected by, among other things: general
economic conditions in the markets in which Lanier operates;
economic developments that have a particularly adverse effect on
one or more of the markets Lanier serves; the ability to execute
managements internal operating plans; stability of key
markets for office products and document management solutions;
fluctuation in foreign currency exchange rates and the
effectiveness of currency hedging program; and worldwide demand
and product and service pricing for office products and document
management solutions. Additional information concerning these
risks and uncertainties is contained in the Registration
Statement, as filed with the Securities and Exchange Commission.
Caution should be taken not to place undue reliance on any
forward-looking statements, since such statements speak only as
of the date of the making of such statements. Lanier disclaims
any intention or obligation to update or revise any
forward-looking statements whether as a result of new
information, future events, or otherwise.

Results of Operations

Lanier reported lower revenue and earnings for the first quarter
of fiscal year 2000 compared to the same quarter of the prior
fiscal year, primarily due to pricing and margin pressure
resulting from the industry-wide transition from analog to
digital products, and the divestitures during the fourth quarter
of fiscal 1999 of Laniers direct sales operation in France
and U.S.-based medical transcription business which contributed
approximately $3 million and $6 million in the prior fiscal year,
 respectively. The company is also experiencing

6



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Revenue

Revenue declined 5.7% to $317.9 million from $337.2 million in
the first quarter of fiscal year 1999.

Product Sales and Rentals. Product sales and rental
revenue decreased 5.3% to $168.5 million compared to $178.0
million in the first quarter of the prior fiscal year. The
revenue decline was primarily attributable to the strengthening
of the U.S. dollar relative to European currencies of $4.7
million on a constant-rate basis and the divestiture of
Laniers direct sales operation in France which contributed
approximately $3 million of revenue in the prior year. To a
lesser extent, pricing pressures associated with the industry
transition from analog technology to digital technology and a
decrease in unit sales volume contributed to lower product sales
and rental revenue.

Service Income. Service income decreased 7.3% to $139.1
million for the first quarter compared to $150.0 million for the
same quarter last year. The medical transcription business
divested in the fourth quarter of fiscal 1999 contributed
approximately $6 million of service revenue in the first quarter
of fiscal 1999 with no comparable amount in the current quarter.
The remainder of the decline was primarily attributable to lower
litigation services-related revenue at Laniers litigation
service subsidiary.

Finance Income. Finance income increased 10.7% to $10.3
million for the first quarter compared to $9.2 million for the
prior years first quarter due to an increase in product
leasing.

Gross Margin. Gross margin on product sales and rental
revenue declined to 29.6% of net sales for the first quarter
compared to 34.9% for the prior years first quarter. The
decline was principally attributable to ongoing price competition
 on both analog and digital product lines and the strengthening
of the Japanese yen compared to the U.S. dollar. Gross margin on
services increased to 44.7% compared to 43.2% for the same
quarter last year. This increase was primarily related to reduced
 compensation expenses resulting from restructuring actions
completed in fiscal year 1999.

Selling and Administrative Expenses. Selling and
administrative expenses decreased from $110.9 million or 32.9% of
 total revenue in the prior year to $98.6 million or 31.0% of
revenue in the quarter ended October 1, 1999. This decline
primarily resulted from managements ongoing effort to
reduce overhead expenses.

Operating expenses in the first quarter of the prior fiscal year
included a management fee allocation of $5.9 million for a pro
rata share of Harris overhead expenses. In the first
quarter of fiscal year 2000, this allocation was reduced to $1.7
million to reflect the level of expense Lanier expects to incur
for these services as a stand-alone company.

Other Income and Expense. Interest expense was related to
outstanding debt on the date of the financial statements. Future
interest will be significantly higher as a result of the
additional debt incurred in the Spin-off. Other expense of $2.5
million for this quarter included a $1.5 million charge for the
potential settlement of a two contract disputes.

Net Income. Net income decreased to $9.7 million in the
first quarter compared to $13.5 million in the same quarter of
the prior year. The decline was principally attributable to the
decline in revenue and gross margins discussed above.

Liquidity and Capital Resources

Net cash flow provided by operating activities was $17.5 million
and $75.6 million in the first quarter of fiscal years 2000 and
1999, respectively. The decrease in the first quarter of fiscal
year 2000 operating cash flows was primarily due to increases in
inventory levels related to new digital and color copier models
as well as increased payments to vendors as compared to the prior
 years first quarter.

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Lanier used $25.8 million and $186.2 million net cash in
investing activities during the first quarter of fiscal years
2000 and 1999, respectively. During the prior years first
quarter, $168.3 million was used for the Agfa Acquisition.

Cash provided by financing activities was $2.3 million for the
first quarter of fiscal 2000 and $101.3 million for the same
quarter last year. The prior years first quarter reflected
financing used for the Agfa Acquisition, net of positive cash
flows.

Lanier has no material commitments other than supply agreements
with vendors. Lanier will continue to make additional investments
 in facilities, equipment and computer equipment to support
revenue requirements. Cash flow from operations, together with
anticipated borrowing arrangements, is expected to adequately
finance operating cash requirements and capital expenditures
during this fiscal year. Lanier expects to fund future
acquisitions, if any, and long-term growth primarily with cash
flows from operations, borrowings under the $900 million credit
facility and possible future issuance of equity or debt
securities.

Capital expenditures for property, plant and equipment were $5.6
million for the first quarter of fiscal 2000 compared to $6.2
million for the same quarter last year. For the first quarter,
$20.0 million was invested in rental equipment, which is $8.3
million more than the investment in the prior years first
quarter.

Credit Facility

Lanier has a $900 million credit facility (Credit
Facility) with ABN AMRO Bank N.V., as administrative agent,
 SunTrust Bank, Atlanta, as syndication agent, and Wachovia Bank
N.A., as document agent.

On November 4, 1999 subsequent to the quarter end, $590
million was advanced under the Credit Facility. The advances were
 used primarily to fund a $545 million cash distribution to
Harris, a $22.8 million payment for the transfer of ownership in
two subsidiaries which had $22.8 million of net cash and for
working capital needs.

The Credit Facility contains financial covenants. In particular,
the Credit Facility contains (i) a covenant regarding
maintenance of a leverage ratio, which is defined as total debt
divided by EBITDA (earnings before interest, taxes, depreciation
and amortization), (ii) an interest coverage covenant, which
 is defined as EBITDAR (earnings before interest, taxes,
depreciation, amortization and rental expense) divided by
interest and rental expense and (iii) a minimum net worth
covenant. The Credit Facility restricts Laniers ability to
pay dividends or make other distributions and to redeem, purchase
 or otherwise acquire shares of its capital stock, and prohibits
any such dividend, distribution, redemption, purchase or other
acquisition during the existence of a default or event of default
 thereunder. The Credit Facility contains covenants limiting
total acquisitions in any fiscal year to $150 million. This limit
 increases to $250 million upon repayment of the two-year term
loan portion of the Credit Facility and $350 million upon
achieving a senior unsecured debt rating of BBB or
better by Standard & Poors Ratings Group or
Baa or better by Moodys Investors Services,
Inc.

Additionally, the Credit Facility contains covenants which, among
 other things, require production of financial statements, notice
 of material litigation and material governmental and
environmental proceedings, compliance with laws and contractual
obligations, payment of taxes, maintenance of insurance and Year
2000 compliance and limit the incurrence of additional
indebtedness, mergers, consolidations and sales of assets,
dividends, stock redemption and the prepayment of other debt,
investments and acquisitions, capital expenditures, sales and
leaseback transactions and transactions with affiliates. The
Credit Facility also contains customary events of default,
including payment defaults, inaccuracies of representations and
warranties, violation of covenants and cross defaults to other
indebtedness.

The indebtedness under the Credit Facility is guaranteed by
Laniers domestic and foreign subsidiaries, and will be
secured by a pledge of the capital stock of certain subsidiaries.
 Lanier may also incur additional indebtedness under the Credit
Facility from time to time for general corporate purposes,
including working capital, capital expenditures and future
acquisitions.

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Impact of Year 2000

The Year 2000 statements set forth below are designated as
Year 2000 Readiness Disclosures pursuant to the Year
2000 Information and Readiness Disclosure Act.

Certain software and hardware systems are time sensitive. Older
time-sensitive systems often use a two-digit dating convention
(i.e., 00 rather than 2000) that could
result in system failure and disruption of operations as the Year
 2000 approaches. The Year 2000 problem will impact Laniers
 operations, vendors and suppliers, customers, and other third
parties that interface with Lanier.

With regard to the Year 2000 problem, more than 40 project
initiatives of varying magnitudes have been identified throughout
 Laniers business operations. These initiatives relate to
four basic aspects of the business operations: internal
information technology (IT) systems, including sales
order processing, contract management, financial systems and
service management; internal non-IT systems, including office
equipment and test equipment products; and material third-party
relationships.

Each project has been assigned a leader and prioritized based on
the size of the task and the perceived business risk. Lanier has
established a Year 2000 Task Force to manage overall internal
readiness and business continuity planning efforts, and have
created a web site at www.lanier.com, on which Lanier provides
detailed information and updates concerning Year 2000 issues,
efforts to address such issues, and the Year 2000 compliance of
Laniers products and internal systems. Lanier has
substantially completed all of its Year 2000 initiatives.

Internal IT Systems.Lanier has determined its needs to
replace or modify several software systems and is in the process
of replacing or outsourcing many time-sensitive software systems.
 Lanier has programs for reprogramming other time-sensitive
software and equipment. For example, Lanier has replaced accounts
 receivable and payable systems and internal purchasing system.
Lanier has upgraded its general ledger system to be Year 2000
compliant and has modified its sales order processing system,
service system, billing system and contract management system to
be Year 2000 compliant. Lanier believes that the required
modifications of internal IT systems were substantially complete
as of October 31, 1999.

Internal Non-IT Systems.Lanier believes that a limited
number of non-IT systems, such as office equipment and test
equipment with date-sensitive software and embedded
microprocessors, may be affected. Lanier believes that exposure
related to non-IT systems is minimal and that a disruption of any
 of these systems will not materially inhibit ability to conduct
business operations.

Products.Lanier has initiated formal programs to advise
and work with customers to resolve Year 2000 problems.
Laniers current product offerings are Year 2000 compliant,
with limited exceptions. Customers who own older generation
products which are not Year 2000 compliant have been notified of
the issue and, wherever possible, have been given suggestions for
 manual overrides of the particular product. However, Lanier
believes that it has no material exposure to contingencies
related to the Year 2000 issue for the products sold. Lanier has
Year 2000 exposure in operating systems and business systems;
including engineering, order fulfillment, program management,
financial and administrative functions. It is Laniers
belief that the greatest potential risk from the Year 2000 issue
could be its inability to meet commitment dates on delivery of
product and has focused the majority of effort and dedicated
resources to address this issue. In addition, Lanier believes
that a limited number of the non-IT systems, such as office
equipment and test equipment with date-sensitive software and
embedded microprocessors may be affected, and evaluation and
remediation are underway.

Material Third-Party Relationships.Lanier has also
initiated communications with significant suppliers, customers,
and other relevant third parties to identify and minimize
disruptions to operations and to assist in resolving Year 2000
issues. Lanier has identified 40 key suppliers and performed an
in-depth analysis of the product lines provided to Lanier, in
order to ensure that such products are Year 2000 compliant.
Additionally, Lanier has identified critical parts and components
 necessary to support existing product lines and is building
safety stock of these items prior to the end of the calendar year
 1999. However, there can be no certainty that the systems and
products of other companies on which Lanier relies will not have
an adverse effect on Laniers operations.

9



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The estimated cost for resolving Year 2000 issues was $11.5
million with an approximate remaining balance of $0.5 million
planned for fiscal year 2000. These costs were generally not
incremental to existing IT budgets; internal resources were
re-deployed and timetables for implementation of replacement
systems were accelerated. The largest portion of this expenditure
 was used to replace existing software and hardware. Of the above
 total, $5.2 million was related to investments in hardware or
other capitalizable costs or operating leases which will be
amortized in current or future periods. Estimates of the Year
2000-related costs are based on numerous assumptions and there is
 no certainty that estimates will be achieved and actual costs
could be materially greater than anticipated. Specific factors
that might cause such differences include, but are not limited
to, the continuing availability of personnel trained in this
area, the ability to timely identify and correct all relevant
computer programs, and similar uncertainties.

Lanier is working to identify and analyze the most likely
worst-case scenarios, any of which could have a material adverse
effect on its ability to provide products and services to
customers. These possible scenarios include the failure of the
water and power supplies, the failure of communications and
financial systems, major transportation disruptions, and lack of
Year 2000 readiness of third-party vendors and customers. Lanier
continues to develop contingency plans to address potential Year
2000 problems relating to the infrastructure and Laniers
business partners as potential problems are identified. Despite
such efforts, an infrastructure problem or combination of the
above-mentioned Year 2000 problems not within Laniers
control could have a material adverse impact on its business and
results of operations.

Euro Conversion

On January 1, 1999, certain member nations of the EMU
adopted a common currency, the Euro. For a three-year transition
period, both the Euro and individual participants
currencies will remain in circulation. After January 1, 2002, the
 Euro will be the sole legal tender for EMU countries. The
adoption of the Euro affects many financial systems and business
applications as the commerce of these nations will be transacted
in both the Euro and the existing national currency. For fiscal
year 1999, approximately 20.7% of Laniers revenues were
derived from EMU countries.

Lanier is currently addressing Euro-related issues and its impact
 on information systems, currency exchange rate risk, taxation,
contracts, competition, and pricing. For fiscal year 1999, Lanier
 did not experience an adverse impact or material expense related
 to the adoption of the Euro. All cost associated with the
adoption of the Euro has been expensed as incurred. Lanier has
completed the Euro-related information systems conversion for all
 information systems except for the European financial systems.
Lanier has implemented the Euro-compliant version of the European
 financial systems; however, several program inefficiencies
remain which can be resolved only by the financial systems
vendor. Management expects that the vendor will correct these
inefficiencies so that first customer conversion will occur
before November 30, 1999.

Seasonality

Laniers business is somewhat seasonal as a result of its
sales incentive programs with the strongest revenue and profit
occurring in the second and fourth quarters. The results of
operations for any interim quarter are not necessarily indicative
 of results for a full year.

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##### Table of Contents






Item  3.  Quantitative and Qualitative
Disclosures About Market Risk

Market Risk

Impact of Foreign Exchange.Laniers international
sales are generally denominated in the currency of the foreign
entities, which exposes it to fluctuations in foreign currency
exchange rates and to other material risks associated with
international operations. Historically, earnings have not been
adversely impacted by currency fluctuations. Currency risk
associated with foreign investments has been mitigated by
liabilities denominated in local functional currencies. In
addition, Lanier utilizes exchange rate agreements, which provide
 limited protection against currency exchange risks. Factors that
 could impact the effectiveness of the hedging program include
volatility of currency markets and the cost and availability of
hedging instruments. A ten-percent adverse change in currency
exchange rates for foreign currency derivatives held at
October 1, 1999 would have an impact of approximately $9
million on the fair value of such instruments. This
quantification of exposure to the market risk associated with
foreign exchange financial instruments does not take into account
 the offsetting impact of changes in the fair value of foreign
denominated assets, liabilities, and firm commitments.

Historically, gains and losses resulting from currency rate
fluctuations have not had a material effect on results of
operations. However, Laniers risk exposure may increase as
international sales increase in volume and geographic
distribution. The impact of translating the assets and
liabilities of international operations into U.S. dollars is
included as a component of stockholder equity.

Interest Rate Risk.Beginning in the second quarter of
fiscal 2000, Lanier plans to use interest rate hedges on a
portion of the Credit Facility, in order to manage exposure to
interest rate changes from floating rate debt. Based upon the
$590 million borrowed in connection with the Credit Facility and
Laniers interest rate management agreement which
effectively fixes the rate of interest on $250 million at 8.5%,
the impact of a 1% increase in the interest rate on Laniers
 borrowings under the Credit Facility would result in additional
annual interest expense totaling $4.7 million.






PART  II







Item  5.  Other Information


LANIER WORLDWIDE INC.






UNAUDITED PRO FORMA CONSOLIDATED FINANCIAL STATEMENTS


Introduction to Unaudited Pro Forma Consolidated Financial
Statements

Lanier was acquired by Harris in 1983 and has no recent operating
 history as an independent company. The historical unaudited
consolidated financial statements contained in this document
reflect periods during which we did not operate as an independent
 company, and certain assumptions were made in preparing such
financial statements. Therefore, the historical unaudited
consolidated financial statements may not necessarily reflect the
 consolidated results of operations or financial position that
would have existed had Lanier been an independent company.

The following unaudited pro forma consolidated financial
statements make adjustments to the historical consolidated
balance sheet at October 1, 1999 as if the Spin-off of
Lanier from Harris had occurred on October 1, 1999, and the
historical unaudited consolidated income statements for the
quarter ended October 1, 1999, as if the Spin-off had
occurred on July 2, 1999.

The unaudited pro forma consolidated financial statements should
be read in conjunction with the historical unaudited Consolidated
 Financial Statements of Lanier and the Notes thereto contained
elsewhere in this document and the audited Consolidated Financial
 Statements contained in Laniers Registration Statement.
The pro forma consolidated financial information is presented for
 informational purposes only and may not necessarily reflect the
future financial position, results of operations or what the
results of operations or financial position would have been had
Laniers businesses been operated as an independent company
for the periods indicated.

11



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##### Table of Contents



LANIER WORLDWIDE, INC. AND SUBSIDIARIES






UNAUDITED PRO FORMA CONSOLIDATED BALANCE SHEET


October 1, 1999


|                                   |                                                                                                   |                                          |   |             |           |           |          |          |          |   |   |         |           | 
|---------------------------------- | ------------------------------------------------------------------------------------------------- | ---------------------------------------- | - | ----------- | --------- | --------- | -------- | -------- | -------- | - | - | ------- | --------- | 
|                                   |                                                                                                   | Historical                               |   | Adjustments |           | Pro Forma
|                                   |                                                                                                   |                                          |   |             |           |          
|                                   |                                                                                                   |                                         
|                                   |                                                                                                   | (In thousands)                          
|                                  
|                                  
|                                  
|                                  
|ASSETS                            
|                                  
|                                  
|                                  
|                                  
|Current Assets:                    |                                                                                                   |                                          |   |             |           |           |          |          |          |   |   |        
|                                  
|                                  
|                                  
|                                  
|                                   | Cash and cash equivalents                                                                         |                                          | $ | 14,855      |           |           | $        | 22,772   | (C)      |   | $ | 37,627  |          
|                                  
|                                  
|                                  
|                                  
|                                   | Trade receivables                                                                                 |                                          |   | 318,284     |           |           |          |          |          |   |   | 318,284 |          
|                                  
|                                  
|                                  
|                                  
|                                   | Receivables from Harris                                                                           |                                          |   | 181,790     |           |           |          | (181,790 | )(A)     |   |   |         |          
|                                  
|                                  
|                                  
|                                  
|                                   | Inventories                                                                                       |                                          |   | 197,245     |           |           |          |          |          |   |   | 197,245 |          
|                                  
|                                  
|                                  
|                                  
|                                   | Prepaid expenses                                                                                  |                                          |   | 12,924      |           |           |          | 9,600    | (C)      |   |   | 22,524  |          
|                                  
|                                  
|                                  
|                                  
|                                   | Deferred income taxes                                                                             |                                          |   | 55,931      |           |           |          |          |          |   |   | 55,931  |          
|                                   |                                                                                                   |                                          |   |             |           |           |          |          |          |   |   |        
|                                   |                                                                                                   | Total current assets                     |   |             | 781,029   |           |          |          | (149,418 | ) |   |         | 631,611   | 
|                                  
|                                  
|                                  
|                                  
|Other Assets:                      |                                                                                                   |                                          |   |             |           |           |          |          |          |   |   |        
|                                  
|                                  
|                                  
|                                  
|                                   | Rental equipment  net                                                                            |                                          |   | 140,173     |           |           |          |          |          |   |   | 140,173 |          
|                                  
|                                  
|                                  
|                                  
|                                   | Property, plant and equipment  net                                                               |                                          |   | 41,554      |           |           |          |          |          |   |   | 41,554  |          
|                                  
|                                  
|                                  
|                                  
|                                   | Notes receivables  net                                                                           |                                          |   | 217,224     |           |           |          |          |          |   |   | 217,224 |          
|                                  
|                                  
|                                  
|                                  
|                                   | Intangibles  net                                                                                 |                                          |   | 124,712     |           |           |          |          |          |   |   | 124,712 |          
|                                  
|                                  
|                                  
|                                  
|                                   | Other                                                                                             |                                          |   | 43,024      |           |           |          |          |          |   |   | 43,024  |          
|                                   |                                                                                                   |                                          |   |             |           |           |          |          |          |   |   |        
|                                   |                                                                                                   | Total other assets                       |   |             | 566,687   |           |          |          |          |   |   |         | 566,687   | 
|                                   |                                                                                                   |                                          |   |             |           |           |          |          |          |   |   |        
|                                   |                                                                                                   | Total assets                             |   | $           | 1,347,716 |           |          | $        | (149,418 | ) |   | $       | 1,198,298 | 
|                                   |                                                                                                   |                                          |   |             |           |           |          |          |          |   |   |        
|                                  
|                                  
|                                  
|                                  
|LIABILITIES AND STOCKHOLDER EQUITY
|                                  
|                                  
|                                  
|                                  
|Current Liabilities:               |                                                                                                   |                                          |   |             |           |           |          |          |          |   |   |        
|                                  
|                                  
|                                  
|                                  
|                                   | Notes payable                                                                                     |                                          | $ | 137,840     |           |           |          |          |          |   | $ | 137,840 |          
|                                  
|                                  
|                                  
|                                  
|                                   | Trade payables                                                                                    |                                          |   | 73,917      |           |           |          |          |          |   |   | 73,917  |          
|                                  
|                                  
|                                  
|                                  
|                                   | Retirement plan obligations                                                                       |                                          |   | 41,581      |           |           |          |          |          |   |   | 41,581  |          
|                                  
|                                  
|                                  
|                                  
|                                   | Accrued compensation                                                                              |                                          |   | 33,088      |           |           |          |          |          |   |   | 33,088  |          
|                                  
|                                  
|                                  
|                                  
|                                   | Accrued interest and sundry taxes                                                                 |                                          |   | 19,453      |           |           |          |          |          |   |   | 19,453  |          
|                                  
|                                  
|                                  
|                                  
|                                   | Other accrued items                                                                               |                                          |   | 37,115      |           |           |          |          |          |   |   | 37,115  |          
|                                  
|                                  
|                                  
|                                  
|                                   | Unearned service income                                                                           |                                          |   | 50,301      |           |           |          |          |          |   |   | 50,301  |          
|                                  
|                                  
|                                  
|                                  
|                                   | Income taxes                                                                                      |                                          |   | 19,710      |           |           |          |          |          |   |   | 19,710  |          
|                                  
|                                  
|                                  
|                                  
|                                   | Long-term debt-current portion                                                                    |                                          |   | 2,098       |           |           |          |          |          |   |   | 2,098   |          
|                                   |                                                                                                   |                                          |   |             |           |           |          |          |          |   |   |        
|                                   |                                                                                                   | Total current liabilities                |   |             | 415,103   |           |          |          |          |   |   |         | 415,103   | 
|                                  
|                                  
|                                  
|                                  
|Other Liabilities:                 |                                                                                                   |                                          |   |             |           |           |          |          |          |   |   |        
|                                  
|                                  
|                                  
|                                  
|                                   | Deferred income taxes                                                                             |                                          |   | 31,937      |           |           |          |          |          |   |   | 31,937  |          
|                                  
|                                  
|                                  
|                                  
|                                   | Long-term debt                                                                                    |                                          |   | 6,583       |           |           |          | 577,986  | (C)      |   |   | 584,569 |          
|                                  
|                                  
|                                  
|                                  
|Stockholder Equity:                |                                                                                                   |                                          |   |             |           |           |          |          |          |   |   |        
|                                   | Preferred stock, no par value: authorized 1,000,000 shares,
	issued  none                        |                                          |   |             |           |           |          |          |          |   |   |         |          
|                                  
|                                  
|                                  
|                                  
|                                   | Common Stock, $1.00 par value, 1,000,000 shares authorized;
	issued and outstanding 41,893 shares |                                          |   | 42          |           |           |          | 837      | (D)      |   |   | 879     |          
|                                   |                                                                                                   |                                          |   |             |           |           | (181,790 | )(A)     |          |   |   |        
|                                   |                                                                                                   |                                          |   |             |           |           | 5,540    | (B)      |          |   |   |        
|                                   |                                                                                                   |                                          |   |             |           |           | (545,614 | )(C)     |          |   |   |        
|                                   |                                                                                                   |                                          |   |             |           |           | (837     | )(D)     |          |   |   |        
|                                  
|                                  
|                                  
|                                  
|                                   | Additional paid-in capital                                                                        |                                          |   | 329,679     |           |           |          | 590,734  | (C)      |   |   | 197,712 |          
|                                   |                                                                                                   |                                          |   |             |           |           | (5,540   | )(B)     |          |   |   |        
|                                  
|                                  
|                                  
|                                  
|                                   | Retained earnings                                                                                 |                                          |   | 596,274     |           |           |          | (590,734 | )(C)     |   |   |         |          
|                                  
|                                  
|                                  
|                                  
|                                   | Accumulated comprehensive loss                                                                    |                                          |   | (31,902     | )         |           |          |          |          |   |   | (31,902 | )        
|                                   |                                                                                                   |                                          |   |             |           |           |          |          |          |   |   |        
|                                   |                                                                                                   | Total stockholder equity                 |   |             | 894,093   |           |          |          | (727,404 | ) |   |         | 166,689   | 
|                                   |                                                                                                   |                                          |   |             |           |           |          |          |          |   |   |        
|                                   |                                                                                                   | Total liabilities and stockholder equity |   | $           | 1,347,716 |           |          | $        | (149,418 | ) |   | $       | 1,198,298 | 
|                                   |                                                                                                   |                                          |   |             |           |           |          |          |          |   |   |        

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Notes to Unaudited Pro Forma Consolidated Balance Sheet

The following adjustments were made to Laniers
October 1, 1999 historical consolidated balance sheet to
give effect to the Spin-off as if it had occurred on that date:



| |                                                                                                                                                                                                                          
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (A)  Forgiveness of intercompany accounts between Harris and
	 Lanier.                                                                                                                                                   
|
| | (B)  Accruals for additional interest expense, elimination
	of interest income on loans to Harris and the related tax benefit
	 resulting from these expenses.                                                           
|
| | (C)  To reflect additional new indebtedness of Lanier
	incurred prior to the Spin-off under the Credit Facility for the
	purpose of the cash payment to Harris. The amount of the cash
	payment is calculated as follows:

|                              |                                          |   |         |         | 
|----------------------------- | ---------------------------------------- | - | ------- | ------- | 
|                              |                                          | $ | 700,000 |        
|                             
|                             
|                             
|                             
|Add: Cash retained or assumed |                                          |   | 14,855  |        
|                             
|                             
|                             
|                             
|Less:                         |                                          |   |         |        
|                             
|                             
|                             
|                             
|                              | Historical debt assumed or retained      |   |         | 146,521 | 
|                             
|                             
|                             
|                             
|                              | Asset securitization (off balance sheet) |   |         | 22,720  | 
|                              |                                          |   |         |        
|Cash Payment                  |                                          | $ | 545,614 |        
|                              |                                          |   |         |        



| |                                                                                                                                                                                                                                        
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | In addition, arrangement fees of $9,600 paid at Spin-off are
	reflected as an asset. Further, $22,772 of cash received in the
	transfer of two subsidiaries is reflected. The total increment to
	 debt shown is calculated as follows:

|                           |  |   |         | 
|-------------------------- |  | - | ------- | 
|                          
|                          
|                          
|                          
|Cash payment               |  | $ | 545,614 | 
|                          
|                          
|                          
|                          
|Transfer of subsidiaries   |  |   | 22,772  | 
|                          
|                          
|                          
|                          
|Bank fees at Spin-off      |  |   | 9,600   | 
|                           |  |   |         | 
|Increase in Long-term Debt |  | $ | 577,986 | 
|                           |  |   |         | 



| |                                                                                           
| | ------------------------------------------------------------------------------------------
| | (D)  To reflect additional Lanier shares distributed after
	giving effect to the Spin-off.

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LANIER WORLDWIDE, INC. AND SUBSIDIARIES






UNAUDITED PRO FORMA CONSOLIDATED STATEMENT OF INCOME

For the Quarter Ended October 1, 1999


|                   |                                     |                                         |         |             |  |           |        |        |      |   |         |         |    
|------------------ | ----------------------------------- | --------------------------------------- | ------- | ----------- |  | --------- | ------ | ------ | ---- | - | ------- | ------- | ---
|                   |                                     | Historical                              |         | Adjustments |  | Pro Forma
|                   |                                     |                                         |         |             |  |          
|                   |                                     |                                        
|                   |                                     | (In thousands except per share amounts)
|                  
|                  
|                  
|                  
|Revenue:           |                                     |                                         |         |             |  |           |        |        |      |   |         |        
|                  
|                  
|                  
|                  
|                   | Product sales and rentals           |                                         | $       | 168,504     |  |           |        |        |      |   | $       | 168,504 |    
|                  
|                  
|                  
|                  
|                   | Service income                      |                                         |         | 139,124     |  |           |        |        |      |   |         | 139,124 |    
|                  
|                  
|                  
|                  
|                   | Finance income                      |                                         |         | 10,317      |  |           |        |        |      |   |         | 10,317  |    
|                   |                                     |                                         |         |             |  |           |        |        |      |   |         |        
|                   |                                     | $                                       | 317,945 |             |  |           |        |        |      | $ | 317,945 |        
|                  
|                  
|                  
|                  
|Cost and Expenses: |                                     |                                         |         |             |  |           |        |        |      |   |         |        
|                  
|                  
|                  
|                  
|                   | Cost of product sales and rentals   |                                         |         | 118,695     |  |           |        |        |      |   |         | 118,695 |    
|                  
|                  
|                  
|                  
|                   | Cost of service                     |                                         |         | 76,890      |  |           |        |        |      |   |         | 76,890  |    
|                  
|                  
|                  
|                  
|                   | Selling and administrative expenses |                                         |         | 98,558      |  |           |        |        |      |   |         | 98,558  |    
|                  
|                  
|                  
|                  
|                   | Interest expense                    |                                         |         | 5,589       |  |           |        | 8,936  | (A)  |   |         | 14,525  |    
|                  
|                  
|                  
|                  
|                   | Other  Net                         |                                         |         | 2,466       |  |           |        |        |      |   |         | 2,466   |    
|                   |                                     |                                         |         |             |  |           |        |        |      |   |         |        
|                   |                                     | $                                       | 302,198 |             |  | $         | 8,936  |        |      |   | 311,134 |        
|                   |                                     |                                         |         |             |  |           |        |        |      |   |         |        
|                   | Income before income taxes          |                                         |         | 15,747      |  |           |        | (8,936 | )    |   |         | 6,811   |    
|                  
|                  
|                  
|                  
|                   | Income taxes                        |                                         |         | 6,030       |  |           |        | (3,396 | )(B) |   |         | 2,634   |    
|                   |                                     |                                         |         |             |  |           |        |        |      |   |         |        
|Net Income:        |                                     | $                                       | 9,717   |             |  | $         | (5,540 | )      |      | $ | 4,177   |        
|                   |                                     |                                         |         |             |  |           |        |        |      |   |         |        
|                   | Net income per share                |                                         |         |             |  |           |        |        |      |   | $       | 0.05    | (C)
|                   |                                     |                                         |         |             |  |           |        |        |      |   |         |        

Notes to Unaudited Pro Forma Consolidated Statement of Income

The following adjustments were made to Laniers historical
consolidated income statement for the fiscal year ended
October 1, 1999.



| |                                                                                                                                                                                                           
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (A)  Adjustment to interest expense to reflect additional
	long-term debt of Lanier using an annual estimated interest rate
	of 8.3% assuming $700 million of indebtedness net of cash on
	October 1, 1999
|
| | (B)  Adjustment for income tax provision related to pretax
	adjustments.                                                                                                                                  
|
| | (C)  Net income per share is computed based on 87,944,746
	shares, which represents the number of Lanier shares distributed
	in the Spin-off.                                                             




Item  6.  Exhibits and Reports on
Form 8-K

(a)  Exhibits

|        |      |  |  |                         |  |                                            
|------- | ---- |  |  | ----------------------- |  | -------------------------------------------
|Exhibit |      |  |  |                        
|Number  |      |  |  | Description of Exhibits
|        |      |  |  |                        
|        | 27.1 |  |  |                        |  | Financial Data Schedules (for SEC use only)

(b)  Reports on Form 8-K

The Registrant was not subject to the Reporting Requirements of
the Securities Exchange Act of 1934 during the three-month period
 ended October 1, 1999 and did not file any reports on
Form 8-K during such period.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on
its behalf by the undersigned, thereunto duly authorized.



| |                       
| | ----------------------
| | LANIER WORLDWIDE, INC.



| |     |                       
| | --- | ----------------------
| | By: | /s/ JAMES A. MACLENNAN

| |                                                      
| | -----------------------------------------------------
| |                                                      
| | James A. MacLennan                                   
| | Executive Vice President and Chief Financial
	Officer
| | (Authorized Officer and Principal Financial
	Officer 
| | of the Registrant)                                   

Dated: November 10, 1999

15