STAMFORD, Conn.--(BUSINESS WIRE)--Sept. 20, 2004--Pitney Bowes Inc. (NYSE:PBI) today announced that it has been named the top supplier of transportation management systems, according to a Transportation Management Systems Worldwide Outlook study by ARC Advisory Group. Pitney Bowes moved from its top five ranking in 2002 to its position as the market leader in 2003, based on software license revenue, services, maintenance and recurring fees. Pitney Bowes also retained its position as the top ranked provider of parcel shipping solutions in the United States.

This annual global market study by ARC has become an industry benchmark for ranking market strength and positioning for transportation solution providers. ARC defines Transportation Management Systems as solutions that aid the in the planning, optimization and procurement of transportation services and activities. ARC divides the market into segments based on types of solutions, which include procurement, planning and execution, fleet management, global trade management, parcel shipping, and connectivity.

According to ARC, of the top five vendors, Pitney Bowes was the only one to gain market share in 2003. ARC attributed Pitney Bowes' strength in the TMS arena and its growth of 15 percent to initiatives that included new product introductions, continued adoption of advanced technology solutions and better cross-selling to the company's more than 2 million customers. Overall, the main attributes among the top vendors, in addition to being publicly traded, include a global presence, a broad solution footprint and a large installed client base.

"Pitney Bowes is in a great position to tap into the growing TMS market," said Johanna Boller, director of product management, Pitney Bowes. "This study shows we're making good on our commitment to help companies optimize their transportation operations and eliminate inefficiencies. We're accomplishing this through strong customer relationships, dependable solutions that anticipate customer needs and a powerful sales channel."

"The changing landscape of the TMS market is forcing vendors to revisit their strategies and product development plans, thanks to the obsolescence of traditional, batch-oriented optimization and stronger competition from ERP vendors," said Adrian Gonzalez, director of logistics executive council at ARC. "Considering Pitney Bowes' long history and success in parcel shipping, the company is well equipped to address these demands and poised for continued growth."

Forecasts are based on a number of factors, including historical growth, technology and economic trends, supplier feedback, end-user comments, and ARC's assessment of each segment's potential for growth. Dollar forecasts assume an inflation rate of three percent.

ARC calculates base year market size in terms of calendar year shipments by industry participants, not by bookings or orders. Market share figures are derived from license, services, maintenance, and recurring revenues (e.g. transaction, subscription, and hosting fees); hardware revenues are excluded, along with margins earned by system integrators, distributors, and other third parties involved in product distribution.

The ARC Market Outlook Study entitled Transportation Management Systems Worldwide Outlook: Market Analysis and Forecast through 2008 is a global study of the transportation management solutions market. The study also includes market shares by solution type, geographic region, customer tier and vertical industry plus forecasts and supplier profiles. Additional information can be obtained at www.arcweb.com/research/ent/tms.asp.

About Pitney Bowes

Pitney Bowes is the world's leading provider of integrated mail and document management systems, services and solutions. The $4.6 billion company helps organizations of all sizes reduce costs, increase effectiveness and enhance customer relationships. The company's 80-plus years of technological leadership has produced many major innovations in the mailing industry and more than 3,500 active patents with applications in a variety of markets, including printing, shipping, encryption, and financial services. With approximately 33,000 employees worldwide, Pitney Bowes serves more than 2 million businesses through direct and dealer operations. The Pitney Bowes Distribution Solutions division is a leading provider of software and services that extend control and visibility of the supply chain throughout the enterprise, and enable electronic transactions between business partners and suppliers. Its portfolio of inbound and web-based outbound software solutions helps customers manage critical shipping and mailing information.

    CONTACT: Pitney Bowes
             Media Contact:
             Vicki Javner, 952-885-7121
             vicki.javner@pb.com

    SOURCE: Pitney Bowes