TRUMBULL, Conn.--(BUSINESS WIRE)--June 19, 2000--In response to the ever-increasing corporate demand for complete document solutions, Pitney Bowes Inc. (NYSE:PBI) announced two alliances that will enable it to become the single source provider of complete document management after its creation including copying, printing, faxing, automatic archiving and indexing, report distribution and web enabled search and retrieval capabilities.

Pitney Bowes will provide customers with solutions critical to high-volume applications while streamlining the document management process by offering products from two of the most revered names in their industries -- Heidelberg and Cypress.

Heidelberg is the world's leading printing and publishing solutions provider and Cypress is a leading provider of enterprise document management and delivery systems. Combining these two disciplines will broaden the Pitney Bowes' copier/printer and facsimile offerings to include hardware and software solutions for both paper and electronic documents, as well as high volume copier/printer solutions.

"Document-related costs account for as much as six to 15 percent of corporate expenses. Our latest offerings will empower businesses to regain control of the document," said Dennis Roney, President, Pitney Bowes Office Systems Division.

"Our new software, Knowledge Delivery Solution, will completely streamline the enterprise-wide process whereby documents will be placed in a central document repository in a universal language regardless of document origin or format. Where others have offered promises of sharing the knowledge, Pitney Bowes has delivered," added Roney.

According to a recent Gartner Group report, document management represents a $415 million industry with growth projected at a rate of 35 percent per year.

The new integrated software architecture provided by Pitney Bowes Office Systems enables customers to adopt document output technology on an as-needed basis. With its modular design, the output management and universal archiving solution can be easily upgraded to include additional modules of report distribution, web delivery and document enhancement, thereby saving customers both time and money. The Knowledge Delivery Solution can be fully integrated within one to five days.

Deploying the right products into the right applications has been the focal point of the Pitney Bowes' business strategy and has resulted in the company's stronghold in the mid-range office market. Heeding the request of customers, Pitney Bowes will continue to offer a combination of high performing analog and digital products. "Identifying and anticipating customer needs are the hallmarks of our success," said Roney.

Later this year, Pitney Bowes will offer the ProDoc110, a high-end analog copier system manufactured by Heidelberg Digital, L.L.C. and marketed through NexPress Solutions LLC. A nationwide roll out is expected to begin in the third quarter and focus on select markets.

In the near future, Pitney Bowes will also introduce products that include a high-end digital publishing system that prints 75 pages per minute. This imaging system will be paired with the company's unique Connex print controller platform that can drive up to 10 machines to meet high-volume print applications.

According to Dataquest, market placements of these types of copiers will grow at a rate of five percent per year over the next three years. This current market size exceeds $5 billion, and analog placements are projected to continue to surpass digital placements through 2003.

Pitney Bowes' exhaustive research has precipitated the calculated move into this new market space. "We introduce products when our customers are prepared to incorporate them into their environments. Transforming the culture of business communications takes more than cutting-edge products, it takes a solid business model built on educating our customers as to how these products add value," concluded Mr. Roney.

With more than two million customers worldwide, Pitney Bowes has gained leading market position in several areas, most notably mailing, facilities management and facsimile, through its customer-centric business model. The new strategic partnerships will add enterprise-wide document resource management to the company's extensive business communications and services portfolio.

About Heidelberg Digital

Heidelberg Digital is a division of Heidelberg Druckmaschinen AG (Heidelberg), the world's largest printing and production solutions provider. The division designs and manufactures high-performance digital printing systems, including electrographic equipment; prepress output equipment; digital workflow management systems for prepress and printing applications; and digital finishing systems. With headquarters in Rochester, N.Y. and facilities in England, Germany and Mexico, the division employees 3,100 of Heidelberg's 24,000 employees worldwide.

Marketing of Heidelberg Digital's black and white printing products is performed by NexPress Solutions LLC, a Kodak-Heidelberg joint venture.

About Cypress Corporation

Cypress has focused on developing, marketing and supporting document delivery systems since 1983. The 17-year-old company is headquartered in Rochester Hills, Michigan, with offices in Georgia, New Jersey, Massachusetts, Minnesota, The United Kingdom and Brazil. Cypress customers include some of the world's largest automotive manufacturers, insurance companies, health care providers, financial institutions and governments.

About Pitney Bowes

Pitney Bowes Office Systems offers high performance, leading-edge analog and digital copier/printers and facsimile systems for the corporate market through a nationwide direct sales/service organization. All products are supported by the company's Customer Satisfaction Guarantee. In 2000, the Pitney Bowes model DL520 received the "Digital Imaging System of the Year" award by Buyers Laboratory, Inc., the nation's leading independent office products testing center. Pitney Bowes Inc. is a $4.4 billion premier provider of informed mail and messaging management. For more information about the company, please visit its web site at www.pitneybowes.com.

CONTACT: Publicis Dialog, New York

Michael Anstendig or Paul Wynn

212/684-6300