STAMFORD, Conn.--(BUSINESS WIRE)--March 26, 2001--

M3(TM) System Sorts Broadened Spectrum of Mixed Mail with Greater

Accuracy

Pitney Bowes (NYSE:PBI) today unveiled a Video Coding System option for the M3(TM) Mixed Mail Manager that increases the inbound mail systems' range and accuracy. The M3(TM) System, automates much of inbound mail processing, taking in mixed mail, reading the address using Optical Character Recognition (OCR) technology, locating the recipient in the employee database and sorting the mail accordingly.

The Video Coding System allows mail center operators to process mail that cannot be recognized by OCR. When mail passes through the M3(TM) System, it is scanned, creating a digital image of each mail piece. If the system is unable to decipher the recipient's address, the mail piece image is routed to Video Coding system. The image is displayed on a computer screen where the operator views the image and enters the first few keystrokes of the intended destination. The system matches assigned destination with a unique identifier that has been printed on the mail piece. The mail is then reprocessed through the M3(TM) System and delivered to the correct recipient.

"The Video Coding System significantly extends the range of mail that can be processed via high speed automation," said Charlene Malone, Vice President and General Manager of Pitney Bowes' Incoming Messaging Solutions. "The M3(TM) System uses the most sophisticated OCR technology available, however, some mail will never be deciphered by an OCR due to incomplete or incorrect address information. With Video Coding, a mail center operator can quickly and efficiently view each unreadable address and tell the system where to route the piece. The M3(TM) System with Video Coding sorts more mail in less time, resulting in increased mail center performance at a significant cost savings."

With Video Coding, mail centers will further increase their productivity and efficiency, not only through enhanced automation but by dramatically simplifying the typical, manual, paper-based research process that operators use to locate a recipient location using employee phone books and other pre-printed materials. Inherent to the Video Coding System is an electronic database with quick look-up functions that allow users to achieve processing speeds ranging from 700 to 1,100 pieces per hour.

The M3(TM) System sorts mail many times faster than manual methods, and supports the widest range of mail, including postcards, letters, flats, interoffice, or package-like mailers. With the system, customers can reduce the amount of time it takes to process incoming mail, sort mail with greater accuracy, create an accurate source of recipient information and even automatically track and report mail operations information.

Inbound mail processing - whether around typical business correspondence, business reply mail or marketing mail response -- is one of the last labor intensive 'legs' of business message management to be targeted for productivity improvements. "Inbound mail handling has been largely ignored because it is a difficult, highly variable process," said Ms. Malone. "Our technologies and solutions handle this important business process to create solid improvements today and promise increased value tomorrow. Without the same level of technology and support on this side of the process we can't achieve a truly efficient end-to-end, closed loop delivery system."

Pitney Bowes Inc. is a $4 billion global provider of integrated mail, messaging and document management solutions headquartered in Stamford, Connecticut. The company serves over 2 million businesses of all sizes in more than 130 countries through dealer and direct operations. Pitney Bowes Incoming Messaging Solutions combines cutting-edge technology with unequalled understanding of end-to-end mail processing to provide automation and processing solutions focused on the incoming mail stream. For additional information about Pitney Bowes, please visit our website at www.pitneybowes.com.

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