STAMFORD, Conn.--(BUSINESS WIRE)--Jan. 4, 2001--Pitney Bowes Inc. (NYSE: PBI) today announced a strategic consolidation of its international and U.S. mailing businesses into a global organization focused on accelerated growth and shareholder value.

Murray Martin, who formerly led the company's international operations, will head the new organization as Executive Vice President and Group President, Global Mailing Systems. Mr. Martin will report to Michael J. Critelli, Chairman and CEO of Pitney Bowes Inc.

Customers and shareholders will benefit from this move, according to Mr. Critelli. "When we announced the plan to spin-off our Office Systems business last month, we talked about how the transaction would benefit customers and shareholders by freeing us to focus on growth opportunities in designated markets, while maximizing speed and customer responsiveness. As the next major step in that process, this strategic organizational realignment will enable us to leverage the considerable resources of Pitney Bowes to drive growth around the world and address opportunities at the level and scale required to be first to market and best to market. We will establish broad-based sales and marketing best practices and transfer cutting-edge technological and market innovations worldwide. And last, but certainly not least, we will improve customer support and operational efficiency by developing worldwide manufacturing and sourcing strategies, identifying new opportunities for shared services, and examining our investments and expenses to ensure our cost structure is competitive."

He continued, "I believe that a unified, global mailing solutions strategy is the most effective way to win in the rapidly changing postal marketplace which is being driven, particularly outside of the U.S., by the forces of deregulation, competition and evolving technology. This new organization should strengthen our ability to meet the dynamic needs of global customers, aggressively pursue new opportunities, and galvanize our growth internationally and domestically through the economies of scale and efficiencies that a joint organization will yield."

Mr. Martin joined Pitney Bowes in 1987 as President of Dictaphone Canada and served as President of Pitney Bowes Copier Systems from 1990 - 1997. In all businesses he has led, Mr. Martin has demonstrated a strong operational ability to create solid revenue and profitability growth and develop and implement industry leading product, technology and marketing strategies. In the Copier organization, for instance, his expertise in product leadership resulted in Pitney Bowes fielding a line of custom designed products that swept the industry awards winning the Buyers Laboratory's Product Line of the Year in both 1997 and 1998. As head of international operations, Mr. Martin's commitment to strategic selling and marketing strategies helped him deliver revenue and profitability in intensely competitive markets. He has led a turn around of Pitney Bowes' Canadian and Japanese businesses and strengthened Australian and European operations -- including an agreement with Poste Italiane for Post e Bollo, Europe's first Internet postage offering. Mr. Martin has also built capability in previously closed markets like France and Germany, and opened emerging markets such as the Far East and South America.

Mr. Critelli commented, "Murray Martin has consistently focused his organizations on leading the market. His experience and expertise in driving profitable revenue growth and delivering customer-centered solutions, while enhancing competitiveness and efficiency is good news for customers and shareholders alike."

He added, "This strategic realignment will be transparent to our customers. One of the keys to our business success is the ability to partner with customers on a long-term basis through our direct sales and service force. Customers will still enjoy these same relationships in the consolidated organization. The differences will come in our enhanced ability to customize product and service offerings for country-specific needs and our improved ability to rapidly respond to market changes."

John Moody, formerly President of Pitney Bowes U.S. Mailing Systems, will enter a newly created role as an Executive Vice President in the office of the Chairman. Mr. Moody's responsibilities will include leadership of enterprise-wide re-engineering and competitiveness initiatives and completion of a program to develop a global manufacturing and sourcing strategy. He will also take on and manage other broad policy issues that affect Pitney Bowes and its constituents and will work with Mr. Martin to complete certain initiatives underway and insure a smooth transition. Mr. Moody's full title and responsibilities will be further detailed in a separate announcement on or about March 1, 2001.

Pitney Bowes is a global provider of total messaging solutions. For more information on the company please visit www.pitneybowes.com

The forward-looking statements contained in this news release involve risks and uncertainties, and are subject to change based on various important factors. These factors include timely development and acceptance of new products, 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 1999 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 pending spin-off of Pitney Bowes Office Systems.

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