STAMFORD, Conn.--(BUSINESS WIRE)--March 21, 2001--

               Aggregating and Redeploying Key Functions
                     to Fuel Innovation and Growth

Pitney Bowes Inc. (NYSE:PBI) today announced the formation of a focused global business group designed to expand the company's product and service offerings, broaden its customer base and enhance its distribution capabilities in non-traditional areas.

The new organization, Information Based Solutions, will focus on developing both existing and new high growth opportunities which leverage Pitney Bowes' strong customer franchise and brand. Broadly, this includes financial and payment services and the small business/SoHo market: groups which rely on information to both create competitive advantage and develop new distribution channels and methodologies to complement Pitney Bowes strong traditional marketing capabilities.

The unit will be led by Matthew S. Kissner, Group President and Chief Venture Development Officer, expanding a portfolio which has included the company's financial services and small business/SOHO operations. Mr. Kissner will continue to report to Michael J. Critelli, Chairman and CEO of Pitney Bowes Inc. "This new organization will focus resources and dedicated strategic thinking to areas of prime growth for Pitney Bowes," said Mr. Critelli. "This change, coupled with January's formation of a new Global Mailing business, positions us well to accelerate growth and leverage our brand and franchise in new areas."

The move encompasses a number of important changes to align resources and accountability around key market sectors and incremental opportunities. In the small business/SoHo market, PitneyWorks (Internet products and services) will merge with Pitney Bowes Office Direct (small office and SOHO mailing solutions) to form Pitney Bowes Small Business Solutions. Accomplishing two key objectives, this move will concentrate the company's Internet and alternate channel marketing expertise on the varied needs of the small business market and will simultaneously create a means to systematically blend new customer acquisition, marketing and management methods back into the core business.

"Though both are largely targeted at `expansion' segments of our traditional core mailing market, Pitney Bowes Office Direct and PitneyWorks were originally separated from our mainstream business to get the kind of focus, critical mass and dedicated strategic thinking necessary for rapid progress," said Critelli. "In a few short years their accomplishments have been remarkable, and now a bigger opportunity lies ahead. By leveraging the varied strengths of these closely adjacent groups, we increase our impact in the small business market, further improve our cost structure and we enrich the core business with the alternative methods of these `start-up' operations at the same time."

Other major organizational changes surround Pitney Bowes financial services, credit and payment functions where three focus areas are being created. In late January, U.S., Canadian and European internal financial services groups were integrated into Pitney Bowes Global Credit Services. By mirroring the worldwide scope of the Mailing group, Pitney Bowes focuses two interconnected organizations on a commonly defined global customer -- increasing the company's competitive differentiation and extending the impact of market innovations. "Not only do customers need our product and service solutions to grow and maintain their business, but they also need innovative financial, credit, and payment products to help them overcome P&L or cash flow issues that can constrain growth," said Mr. Critelli. "Pitney Bowes is one of the few companies that can bring this full package to bear on critical customer needs."

Two other groups round out Pitney Bowes financial services portfolio. Pitney Bowes Capital Services, the company's large ticket finance group will also be reintegrated into Mr. Kissner's new organization to add scope and scale to the financial solutions offered to customers. Additionally, in order to achieve critical mass and speed broad commercialization of promising high-growth concepts, we will create a new Payment Solutions line of business that will include Pitney Bowes Postage By Phone(R) operations. Leveraging the brand's global record and reputation as a secure, efficient payment engine, the group will develop and market postage payment products such as Pitney Bowes Purchase Power(R), Postal Privilege(R) and the Reserve Account. The team will also focus on extending core payment management capabilities to support other business processes such as permit mail, shipping and package delivery services, foreign currency transactions and Internet payments. Though only launched within the last 4 years, these products today have a user base of nearly 800 thousand customers and securely process over 4.3 million transactions and $2.5 billion in postal revenues each year.

In addition to these growth-focused realignments and business aggregations, Mr. Kissner will also assume responsibility as the company's Chief Venture Development Officer, heading a group that will identify and pursue "white space" opportunities within Pitney Bowes. Focused on supporting the mission-critical communications and information exchange that underlie customers' essential business processes, the company is actively broadening its scope to drive growth and gain a competitive edge with compelling solutions for every aspect of the mail, package and document management process.

Mr. Critelli continued, "When we think about these core business applications - customer acquisition and relationship management, statement and billing presentment and payment, supply chain and transportation management - as our customers do, it's clear that the solution is not just about products, it's about credit, funds management and payments and leveraging business information as well. Matt and his team have demonstrated a clear ability to create innovative solutions, test them and bring them to market quickly and we believe these skills will accelerate our progress as we expand our scope into new business areas."

Mr. Kissner joined Pitney Bowes in 1995 as President and Chief Executive Officer of Pitney Bowes Credit Corporation and served as Executive Vice President and Group President, Pitney Bowes Small Business and Financial Services, since June 1999. He is credited with producing strong revenue growth in the businesses he has led, and for developing and launching a variety of successful new financial services and mailing services products. He has grown a new customer base in the small business marketplace for all Pitney Bowes solutions, and has begun to build new supplemental distribution channel capabilities in telemarketing, direct mail and the Internet.

Mr. Critelli commented, "Matt has demonstrated a clear understanding that financial services solutions can be an important `glue' in a business relationship and generate large volumes of data that can be leveraged to provide powerful information for the customer. His focus on stimulating entrepreneurial development and growth in these new business opportunities will provide value to both customers and shareholders."

Pitney Bowes is a $4 billion global provider of mail and messaging solutions. It serves over 2 million businesses of all sizes in 130 countries through dealer and direct operations. For more information about the company, visit www.pitneybowes.com.

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