STAMFORD, Conn.--(BUSINESS WIRE)--Oct. 2, 2000--

• Pitney Bowes to participate in 2 of the 4 authorized tests

• Technology and Latest Software Answers States and Merchant Needs

Pitney Bowes Inc. (NYSE: PBI) announced today that the Streamlined Sales Tax Project (a project 39 participating state governments are participating in) has awarded the company a second contract to provide a pilot system for facilitating the sales tax collection process. The goal of the Streamlined Sales Tax Project is to design and implement a simplified sales tax system that can benefit merchants of every type and size.

For this one-year pilot, Pitney Bowes will team with Vertex Inc., a leading manufacturer of tax compliance software. Vertex will provide the tax calculation technology, while Pitney Bowes will provide the funds management functionality (i.e. reconciling merchant and tax calculator records, aggregating payments to the states, and preparing necessary documentation.)

Pitney Bowes has a long history as a funds management provider. The company's Postage By Phone(R) System, introduced in 1979, collects over $12 billion in postage funds yearly for the United States Postal Service all without a penny lost. Pitney Bowes is also a leading developer of electronic encryption and security technology.

"We are excited to leverage the proven reliability of our funds management technology to simplify the tax collection process," stated Keith Williamson, President, Pitney Bowes Capital Services. "Our expertise combined with Vertex's tax calculation capabilities will reduce the burden and expense for both merchants and states alike."

Dick Eppleman, Vertex's Director of Government Market Strategy, added, "Our partnership with Pitney Bowes offers a unique blend of capabilities that will enable us to jointly deliver a complete solution for the Streamlined Sales Tax Project. Pitney Bowes' credentials in funds management are unquestioned, as is Vertex's expertise in tax calculation software."

About Vertex Inc.

Founded in 1974, Vertex Inc. is a privately held firm providing more than 10,000 corporate customers with tax compliance software and research services for sales and use tax, property tax, payroll tax, and telecommunications tax. In the area of electronic commerce, Vertex has been selected as the preferred tax software provider for e-business initiatives by software partners Oracle, SAP, PeopleSoft, and others. The company recently became one of only 70 software firms worldwide to receive the prestigious Support Center Practices certification. For more information, visit www.vertexinc.com.

About Pitney Bowes Inc.

Pitney Bowes Inc. is a $4.4 billion global provider of total messaging solutions. It serves over two million businesses of all sizes in 118 countries through dealer and direct operations. For more information about the company, visit www.pitneybowes.com.

Postage By Phone is a registered trademark of Pitney Bowes Inc. All other marks are the products of their respective companies.

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