Postal Service Requests 5.4% 'Across-the-Board' Rate Increase

STAMFORD, Conn., April 8 /PRNewswire-FirstCall/ -- Pitney Bowes Inc. (NYSE: PBI) applauded the U.S. Postal Service's efforts to minimize the impact of rising costs by filing a request for only a modest increase in postal rates.

The proposed 5.4% across-the-board increase, if approved by the independent Postal Rate Commission, could take effect early next year. It would be the first increase in the cost of postage since 2002.

"Rate stability is essential to the growth and vitality of the mailing industry," said Michael J. Critelli, Chairman & CEO of Pitney Bowes. "Ours is a $900 billion industry that collectively employs 9 million Americans and accounts for 8% of U.S. GDP. To the extent that rates must rise, a measured increase like the one proposed by the U.S. Postal Service is preferable."

"The Postal Service is running more efficiently than ever, so the only reason rates are rising now is because the Postal Service must fund an escrow account while Congress debates the fate of pension obligations," Critelli said. "Reform bills currently pending in both houses of Congress would eliminate this obligation to set aside billions in excess pension funds and allow the Postal Service to hold the line on rates for at least one additional year."

Critelli also serves as co-Chairman of the Mailing Industry Task Force and chairman of the Mailing Industry CEO Council.

    Pitney Bowes has called for legislation that:

     *  Permits the Postal Service to use excess pension funds to mitigate
        rate increases;
     *  Clarifies that the mission of the Postal Service is to maintain
        universal physical mail service at affordable rates;
     *  Enhances private sector partnerships for the most cost effective
        postal system;
     *  Encourages the Postal Service to embrace technology;
     *  Maintains price stability while increasing pricing flexibility; and
     *  Improves the Postal Service's tools to manage its business and
        employees.

Pitney Bowes is the world's leading provider of integrated mail and document management systems, services and solutions. The $5.0 billion company helps organizations of all sizes efficiently and effectively manage their mission-critical mail and document flow in physical, digital and hybrid formats. Its solutions range from addressing software and metering systems to print stream management, electronic bill presentment and presort mail services. The company's 80-plus years of technological leadership have produced many major innovations in the mailing industry, and it is consistently on the Intellectual Property Owner's list of top U.S. patent holders. With approximately 35,000 employees worldwide, Pitney Bowes serves more than 2 million businesses through direct and dealer operations. More information about the company can be found at http://www.pb.com.

     Contact:  Matt Broder
     Pitney Bowes Inc.
     VP, External Communications
     203-351-6347

SOURCE  Pitney Bowes Inc.
    -0-                             04/08/2005
    /CONTACT:  Matt Broder, VP, External Communications of Pitney Bowes Inc.,
+1-203-351-6347/
    /Web site:  http://www.pitneybowes.com /
    (PBI)

CO:  Pitney Bowes Inc.
ST:  Connecticut
IN:  OFP
SU:

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6107 04/08/2005 15:59 EDT http://www.prnewswire.com