STAMFORD, Conn.--(BUSINESS WIRE)--Sept. 29, 2000--Pitney Bowes Inc. (NYSE: PBI) announced today that the Streamlined Sales Tax Project (a project 39 state governments are participating in) awarded the team of TAXWARE International and Pitney Bowes a contract to provide a pilot system for facilitating the tax collection process. The pilot is planned to run for one year.

The goal of the Streamlined Sales Tax Project is to design and implement a simplified sales tax collection system that can benefit both traditional "brick and mortar" companies along with those involved with e-commerce. Unlike the paper-based tax compliance system merchants and retailers use today, the pilot technology will enable the calculation and remittance of these taxes to be done remotely, thereby reducing the cost associated with compliance.

For the pilot, Pitney Bowes will work with TAXWARE International, Inc., a leading developer of worldwide commercial tax compliance systems. TAXWARE will provide the tax calculation technology, while Pitney Bowes will provide the funds management functionality (i.e. reconciling merchant and tax calculator logs, aggregating payments to the states and preparing necessary documentation.)

Pitney Bowes has a long history as a funds management provider. The company's Postage By Phone(R) System, introduced in 1979, collects over $12 billion in postage funds yearly for the United States Postal Service all without a penny lost. Pitney Bowes is also a leading developer of electronic encryption and security technology.

"We are pleased to leverage our proven funds management technology to simplify the tax collection process," states Keith Williamson, President, Pitney Bowes Capital Services. "By combining our technology solution with TAXWARE's software, we can reduce the tax collection burden on both the merchants and the states - a winning proposition for all."

"TAXWARE is very pleased to have been awarded this pilot system contract with Pitney Bowes, and we are looking forward to making this revolutionary tax concept a huge success." noted Dan Sullivan, CEO, TAXWARE International, Inc. About TAXWARE International, Inc.

Founded in 1964, TAXWARE International, Inc. is a leading developer of worldwide commercial tax compliance systems. The company's systems for automated tax compliance include modules that address sales, use, consumers' use, Internet, excise, telecommunications, property, and international taxation; address verification; exemption processing; and automated returns. TAXWARE is privately held with headquarters in Salem, Mass., and has offices in Los Angeles, San Mateo, Cincinnati, Chicago, Philadelphia, New York, London and Amsterdam. For more information call (978) 741-0101 or visit our Web site at www.taxware.com. About Pitney Bowes, Inc.

Pitney Bowes Inc. is a $4.4 billion global provider of total messaging solutions. It serves over 2 million businesses of all sizes in 118 countries through dealer and direct operations. For more information about the company, visit www.pitneybowes.com. Postage By Phone is a registered trademark of Pitney Bowes Inc. All other marks are the products of their respective companies.

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