"The Company's 68% Stockholder Return Outpaces Standard and Poor's Index"

STAMFORD, Conn.--May 11, 1998--Today at its 78th Annual Meeting of Stockholders, Pitney Bowes Inc. (NYSE: PBI) Chairman and CEO Michael J. Critelli explained, ''1997 was a year of landmark success for Pitney Bowes. With total stockholder return at 68 percent, we outpaced the Standard and Poor's index which returned 33 percent. Highlights of our record performance include: revenue growth of eight percent in our key areas of strategic focus, 12 percent increase in net income, strong double-digit earnings per share of 15 percent, nine percent rise in sales, exceptional operating cash flow of $703 million, and our 15th consecutive year of double-digit dividend growth.

''While we are extremely pleased with these results, we are confident that even greater opportunities to deliver strong returns lie ahead -- as we provide solutions which enhance our customers' ability to compete in today's complex, information-rich communications environment. We've positioned ourselves to address many of the critical end-to-end messaging needs of customers of all sizes. For larger offices, for example, we are further refining our Automated Document Factory solution with a Digital Document Delivery System that will bridge technology platforms to let customers manage message flows for maximum value, by delivering messages by mail, e-mail, fax or the Internet/home page. For the small office environment we are currently providing productivity-enhancing solutions such as DirectNet and the Personal Post Office, and future products such as the Personal Post Office for the PC and LAN-based computer networked metering.

''All in all, these are exciting times for Pitney Bowes as we act on our commitment to being the source for our customers to turn to now and into the 21st century for communications management in the new environment.''

The stockholders elected four directors and approved the continuation of Price Waterhouse as independent accountants for 1998.

The board members elected to three-year terms were: Linda G. Alvarado, President of Alvarado Construction, Inc.; Marc C. Breslawsky, President and Chief Operating Officer, Pitney Bowes Inc.; and Ernie Green, President and Chief Executive Officer of Ernie Green Industries, Inc. Charles E. Hugel, retired Chairman and Chief Executive Officer of Combustion Engineering, Inc. was also elected to a three-year term; he will serve throughout 1999 but will retire from the board upon reaching the mandatory retirement age.