STAMFORD, Conn., July 17 /PRNewswire-FirstCall/ -- Pitney Bowes Inc. (NYSE: PBI) announced today that it has completed the sale of its Capital Services external financing business to an affiliate of Cerberus Capital Management, L.P. The new business will operate under the name EntreCap Financial Corporation and will be based in Shelton, Connecticut.

"The sale of the Capital Services business is an important milestone for Pitney Bowes customers and shareholders," said Michael J. Critelli, Chairman and CEO of Pitney Bowes. "It enhances our focus on helping businesses and postal services around the world to leverage the mailstream to add value for their customers. The completion of this transaction also gives shareholders a clearer view of the underlying strength and growth of our business."

Net of transaction expenses the company will receive approximately $750 million from the disposition of the business. In addition, the purchaser will assume about $470 million of the company's non-recourse debt and other liabilities in connection with this transaction.

The proceeds from the sale will be used to pay taxes associated with the Capital Services business. These are deferred tax obligations that have accumulated over the lives of the assets in the portfolio, which become immediately payable upon the sale of the business to a third party.

Pitney Bowes engineers the flow of communication. The company is a $5.5 billion global leader of mailstream solutions headquartered in Stamford, Connecticut. For more information about the company, its products, services and solutions, visit http://www.pitneybowes.com .

This document contains "forward-looking statements" about our expected future business and financial performance. Words such as "estimate," "project," "plan," "believe," expect," "anticipate," "intend," and similar expressions may identify forward-looking statements. Such forward-looking statements are inherently uncertain and involve risks. Consequently, actual results may differ materially from those indicated by the forward-looking statements. A variety of risks and uncertainties could cause Pitney Bowes actual results to differ materially from the anticipated results or other expectations expressed in the Pitney Bowes forward looking statements. The risks and uncertainties include, without limitation, the following: (a) the ability to conclude a final settlement agreement with the Internal Revenue Service on the outstanding tax issues; and (b) the uncertainty of general business and economic conditions. Additional factors related to these and other expectations are more fully outlined in Pitney Bowes 2005 Form 10-K Annual Report filed with the Securities and Exchange Commission. Pitney Bowes undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise. Investors are advised however, to consult any further disclosures made on related subjects in the company's reports filed with the SEC.

    Contact:
    Press - Sheryl Y. Battles
    VP, Corporate Communications
    (203) 351-6808

SOURCE  Pitney Bowes Inc.
    -0-                             07/17/2006
    /CONTACT:  Press - Sheryl Y. Battles, VP, Corporate Communications,
+1-203-351-6808, or Financial - Charles F. McBride, VP, Investor Relations,
+1-203-351-6349, both of Pitney Bowes/
    /Web site:  http://www.pitneybowes.com /
    (PBI)

CO:  Pitney Bowes Inc.; EntreCap Financial Corporation; Cerberus Capital
     Management, L.P.
ST:  Connecticut
IN:  CPR OFP PEL
SU:

AH
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3833 07/17/2006 09:05 EDT http://www.prnewswire.com