'Company to Pursue Sale of the Business and Settlement of Outstanding Tax
                                   Issues'

STAMFORD, Conn., May 9 /PRNewswire-FirstCall/ -- Pitney Bowes Inc. (NYSE: PBI) today announced its strategy for the disposition of its Capital Services external financing business. The company's Board of Directors took two actions related to this strategy. First, it approved the pursuit of a sale of the business in its entirety. Second, it approved the pursuit of a settlement of all outstanding tax issues currently in dispute with the Internal Revenue Service, most of which are related to the Capital Services external financing business.

According to Michael J. Critelli, Chairman and CEO of Pitney Bowes, "We are pleased that the Board has taken these actions to pursue a sale of the Capital Services external financing business and to settle outstanding tax issues. These actions are consistent with our intent to exit a non-core business in a way that maximizes shareholder value, removes uncertainties with respect to our future tax obligations, and hones our focus on our core businesses."

Pitney Bowes engineers the flow of communication. The company is a $5.6 billion global leader of mailstream solutions headquartered in Stamford, Connecticut. For more information about the company, its products, services and solutions, visit www.pitneybowes.com.

This document contains "forward-looking statements" about our expected future business and financial performance. Words such as "estimate," "project," "plan," "believe," expect," "anticipate," "intend," and similar expressions may identify forward-looking statements. Such forward-looking statements are inherently uncertain and involve risks. Consequently, actual results may differ materially from those indicated by the forward-looking statements. A variety of risks and uncertainties could cause Pitney Bowes actual results to differ materially from the anticipated results or other expectations expressed in the Pitney Bowes forward looking statements. The risks and uncertainties include, without limitation, the following: (a) underlying assumptions or expectations related to the potential sale proving to be inaccurate or unrealized; (b) the ability to reach final agreement for the sale of the Capital Services business; (c) the ability to reach a final settlement agreement with the Internal Revenue Service on the outstanding tax issues; and (d) the uncertainty of general business and economic conditions. Additional factors related to these and other expectations are more fully outlined in Pitney Bowes 2005 Form 10-K Annual Report filed with the Securities and Exchange Commission. In addition, the forward-looking statements are subject to change based on the timing and specific terms of the potential sale transaction. Pitney Bowes undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise. Investors are advised however, to consult any further disclosures made on related subjects in the company's reports filed with the SEC.

    Press -      Sheryl Y. Battles
                 VP, Corporate Communications
                 (203) 351-6808


SOURCE  Pitney Bowes
    -0-                             05/09/2006
    /CONTACT:  Press, Sheryl Y. Battles, VP, Corporate Communications,
+1-203-351-6808, or Financial, Charles F. McBride, VP, Investor Relations,
+1-203-351-6349 /
    /Web site:  http://www.pb.com
                http://www.pitneybowes.com /
    (PBI)

CO:  Pitney Bowes
ST:  Connecticut
IN:  OFP
SU:  TNM

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2344 05/09/2006 09:25 EDT http://www.prnewswire.com