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Company Overview

Pitney Bowes is a mailstream technology company…

…that helps organizations manage the flow of information, mail, documents, and packages.

•• Revenue: Revenue: $6.3 Billion$6.3 Billion

•• Market Value:Market Value: $5 Billion$5 Billion

•• Customers:Customers: 2 Million2 Million

•• Employees:Employees: 35 Thousand35 Thousand

We are a leading provider of mailstream solutions and services.

•• Mailing equipmentMailing equipment

•• Mailing softwareMailing software

•• Distribution solutionsDistribution solutions

•• Postage evidencingPostage evidencing

•• Location intelligenceLocation intelligence

•• Management servicesManagement services

•• International mail servicesInternational mail services

•• Customer financingCustomer financing

•• Marketing servicesMarketing services

•• Presort servicesPresort services

Business Services

31%

Supplies 6%

Financing 12%Equipment

Sales 20%

Rentals 12%

Support Services

12%

Our revenue base reflects a large component of recurring stream revenue.

Software 7%

We offer investors a long-term blend of consistency, financial strength, and growth.

•• EPS Growth 8 EPS Growth 8 -- 10%10%

•• Dividend YieldDividend Yield 3+%3+%

•• Return on CapitalReturn on Capital 14%14%

•• Credit RatingsCredit Ratings A/A1 A/A1 AA--1/P11/P1

LongLong--Term Targets Term Targets

We are expanding our revenue base…

$0

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$7,000

2003 2004 2005 2006 2007 2008

Compound Growth Rate = 7.1%

$4,440$4,832

$5,367$5,730

$6,130$6,262

…and growing our adjusted earnings per share…

$0.00

$0.50

$1.00

$1.50

$2.00

$2.50

$3.00

2003 2004 2005 2006 2007 2008

$1.71* $1.73*

$2.04*

$2.51*

* GAAP diluted EPS, from continuing operations* GAAP diluted EPS, from continuing operations

$2.03$2.22

$2.46

$2.69Compound Growth Rate = 6.5%

Adjusted EPSAdjusted EPS

$1.63*

$2.72

$2.13*

$2.78

…while generating consistent levels of free cash flow.

$0

$200

$400

$600

$800

$1,000

2003 2004 2005 2006 2007 2008

Average Per Year = $662 million

$540 $555 $543$523

$924*

* Includes facility sales, tax refunds and other unusual sources* Includes facility sales, tax refunds and other unusual sources of cashof cash

$888

We pay out on average about half of our free cash flow as dividends to shareholders…

$0

$100

$200

$300

$400

2003 2004 2005 2006 2007 2008

Percent of Free Cash Flow = 43%

$281 $282 $284 $285 $289 $292

…and reduce our average shares outstanding through share repurchases.

0

100

200

300

2003 2004 2005 2006 2007 2008

Decline in Shares Outstanding = 13%236 234 232 225 221

206

We have returned a substantial portion of our free cash flow to shareholders.

$-

$100

$200

$300

$400

$500

$600

$700

2003 2004 2005 2006 2007 2008

Percent of Free Cash Flow = 88%

$480 $482

$543

$685

Dividends Repurchases

$300 $280 $282 $284 $285

$689

$292

$625

U.S.82%

2000*

International 18%

December 2008

U.S.69%

International 31%

*Includes discontinued operations*Includes discontinued operations

We have been increasing our international presence…

…and have been expanding into adjacent markets through acquisitions.

We are focused on higher growth opportunities.

•• International mail servicesInternational mail services

•• Retail solutionsRetail solutions

•• Presort servicesPresort services

•• Document compositionDocument composition

•• Location intelligenceLocation intelligence

•• Address qualityAddress quality

•• Data integrationData integration

Mail ServicesMail ServicesSoftwareSoftware

••Customer loyalty programsCustomer loyalty programs

••WebWeb--based toolsbased tools

••Life event productsLife event products

Marketing ServicesMarketing Services

U.S. Mailing

• More lease maturities

• New products

• Channel management

• Payment solutions Organic Revenue Growth 0% - 2%

35% of total revenue

Growth Drivers

EBIT Target – Remain at 40%

International Mailing

• Asia-Pacific• New products• Financial services• Small business• Supplies• Meter discounts


Growth Drivers

Organic Revenue Growth 3% - 5%

EBIT Target – Grow to at least 20%

Production Mail

• High-speed equipment

• Customized products

• Direct mail solutions

• Private postal companies


Growth Drivers


EBIT Target – Grow to 15%

Software6% of total revenue

Growth Drivers

• Data integration

• Address management

• Document composition

• Location IntelligenceOrganic Revenue Growth 10% - 15%


Management Services


Growth Drivers

• Expand customer base

• Off-site print utilization

• Grow internationally

• Higher value products

• Cross-selling



Mail Services9% of total revenue

Growth Drivers

• Standard mail sorting

• Flat mail sorting

• Greater presort discounts

• Postage discount program

• International mail services


EBIT Target – Grow to 15% to 20%

Marketing Services

3% of total revenue

Growth Drivers

• Life event products

• Customized marketing programs

• Campaign management

• Customer loyalty programsOrganic Revenue Growth 8% - 12%


The statements contained in this presentation that are not purely historical are forward-looking statements about our expected future business and financial performance Words such as “expect,” “anticipate,” “intend,” “estimate,”“project,” “plan,” and other similar words may identify forward looking statements. Such forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those projected. For us, these risks and uncertainties include, but are not limited to: timely development and acceptance of new products or gaining product approval; successful entry into new markets; changes in interest rates; and changes in postal regulations, as more fully outlined in the company’s 2007 Form 10-K annual report filed with the Securities and Exchange Commission. The forward-looking statements contained in this presentation are made as of the date hereof and we do not assume any obligation to update the reasons why actual results could differ materially from those projected in the forward-looking statements.

Pitney Bowes

The Company’s financial results are reported in accordance with generally accepted accounting principles (GAAP). Management finds it useful at times to provide adjustments to its GAAP numbers. The Earnings Per Share and Free Cash Flow results are adjusted to exclude the impact of special items such as transition initiatives, restructuring charges, legal settlements and write downs of assets, which materially impact the comparability of the Company’s results of operations. The following are the non-GAAP measures used in this presentation: Adjusted Earnings Per Share; Free Cash Flow; Earnings Before Interest and Taxes (EBIT) and Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA).

This adjusted financial information should not be construed as an alternative to our reported results determined in accordance with GAAP. Further, our definition of this adjusted financial information may differ from similarly titled measures used by other companies.

Reconciliation of GAAP measures to non-GAAP measures may be found at the company’s web-site www.pb.com/investorrelations and in the schedule following the end of these presentations.

Pitney Bowes

2008 2007 2008 2007

GAAP income (loss) from continuing operations after income taxes, as reported 92,926$ (68,158)$ 447,493$ 361,247$ Restructuring charges and asset impairments 82,347 190,156 144,210 192,628 Tax adjustment (15,272) 32,461 (8,792) 36,063 MapInfo purchase accounting - 2,094 322 11,171 Other items, net - 233 - 4 Income from continuing operations after income taxes, as adjusted 160,001$ 156,786$ 583,233$ 601,113$

GAAP diluted earnings per share from continuing operations, as reported 0.45$ (0.31)$ 2.13$ 1.63$ Restructuring charges and asset impairments 0.40 0.87 0.69 0.87 Tax adjustment (0.07) 0.15 (0.04) 0.16 MapInfo purchase accounting - 0.01 0.00 0.05 Other items, net - 0.00 - 0.00 Diluted earnings per share from continuing operations, as adjusted 0.77$ 0.72$ 2.78$ 2.72$

GAAP net cash provided by operating activities, as reported 248,735$ 363,700$ 990,437$ 1,060,465$ Capital expenditures (67,330) (62,643) (237,308) (264,656) Proceeds from sale of training facility - 29,608 - 29,608 Restructuring payments and discontinued operations 36,822 7,300 103,273 35,831 Loss on redemption of preferred stock issued by a subsidiary - - (1,777) - Reserve account deposits 16,742 36,160 33,359 62,666

Free cash flow, as adjusted 234,969$ 374,125$ 887,984$ 923,914$

Note: The sum of the earnings per share amounts may not equal the totals above due to rounding.

Twelve months ended December 31,

Pitney Bowes Inc.Reconciliation of Reported Consolidated Results to Adjusted Results

(Unaudited)

Three months ended December 31,

(Dollars in thousands, except per share amounts)