STAMFORD, Conn.--Oct. 12, 1998--Pitney Bowes Inc. (NYSE: PBI) today announced that it has reached a definitive agreement to sell its broker-oriented external financing business, to General Electric Capital Corporation (GECC), a subsidiary of General Electric Company (NYSE: GE). In this transaction, the operations, employees and substantially all related assets of Pitney Bowes' wholly owned subsidiary, Colonial Pacific Leasing Corporation (CPLC) will be transferred to GECC.

This agreement reflects Pitney Bowes' focus on maximizing the shareholder value delivered by each of the company's business segments, according to Chairman and CEO Michael J. Critelli, "Today's agreement is the next step in a strategy launched over 12 months ago. In that time, with the refocus of our financial services operations on supporting core products and services and fee based financing, we have generated approximately $2 billion in cash that has been redeployed in core businesses around the world, reduced consolidated debt and been used to repurchase our stock."

Mr. Critelli continued, "CPLC is regarded as a leader in broker-oriented small-ticket financing. Affiliation with a more commonly aligned company such as General Electric Capital Services should provide CPLC with new strategic momentum."

Stephen M. Bennett, president of Vendor Financial Services, the GE Capital unit acquiring CPLC, noted, "This acquisition is a key element of our ongoing strategy to expand our activity in the small ticket financing market."

CPLC, established in 1961, is based in Portland, Ore., and finances leases sourced through a network of 355 brokers and lessors throughout the country.

General Electric Capital Services Inc., with assets of more than US$250 billion, is a global, diversified financial services company with 28 specialized businesses. A wholly-owned subsidiary of General Electric Company, GE Capital, based in Stamford, CT, provides equipment management, mid-market and specialized financing, specialty insurance and variety of consumer services, such as car leasing, home mortgages and credit cards, to businesses and individuals around the world. GE is a diversified manufacturing, technology and services company with operations worldwide.

Pitney Bowes Financial Services division, of which CPLC was a part, provides leasing and financing services to help businesses - ranging from small to large -- acquire Pitney Bowes and other mission- critical equipment and services while preserving cash flow. Pitney Bowes Inc. is a global provider of informed mail and messaging management. For more information about the company, 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, as outlined by the company's 1997 form 10-K Annual Report filed with the Securities and Exchange Commission.

   
    CONTACT: Sheryl Y. Battles
             Executive Director,
             External Affairs
             203/351-6808
                 or
             Michael Monahan
             Director, Investor Relations
             203/351-6349