January 2003 PBI internal use only1

Join us at the Sheraton Hotelonly 1 mile from Grand Central Station!

VALUED INVESTORc/o SHERATON HOTEL811 7TH AVENUENEW YORK, NY 10019-6002

Financial Update – Michael MonahanInvestor Update – September 10, 2008

Michael MonahanExecutive Vice President and Chief Financial Officer

Financial Review

Revenue

$5,367$5,730

$6,130

$6,590

$0

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$7,000

2005 2006 2007 2008Forecast

5.6% 4.5% 0.9% 0% to 2%

Reported 11.1% 6.7% 7.0% 6% to 9%

Organic

$6,500 to

$6,700

36,02035,58034,27034,170

$175.9$172.3$167.2$157.0

0

10,000

20,000

30,000

40,000

Dec-05 Dec-06 Dec-07 Jun-08

$0

$30

$60

$90

$120

$150

$180

Revenue Per EmployeeN

umbe

r of

Em

ploy

ees*

*Headcount is average of previous 4 quarters

Revenue Per Employee

EBIT*

$1,171

$1,186$1,160$1,063

$0

$300

$600

$900

$1,200

2005 2006 2007 2008

= Percent Growth

*Excluding Items

Forecast

$1,160 to

$1,190

Mill

ions

($)

12.6%

9.1% 2.2% -2% to 0%

Net Interest Expense*

$231

$242

$213

$188

$0

$50

$100

$150

$200

$250

2005 2006 2007 2008

= Percent Increase

*Excluding Items

ForecastAverage

Interest Rate 4.7% 5.4% 5.5% 4.7%to 4.8%

$235 to

$240

Mill

ions

($)

19%

13%

14%-1% to -3%

Taxes*

$322

$324$327$294

$0

$100

$200

$300

$400

2005 2006 2007 2008

= Effective Tax Rate

Forecast

*Excluding Items

Mill

ions

($)

33.6%

34.5% 34.3% 34.3% to 34.7%

Minority Interest

$0

$5

$10

$15

$20

$25

2005 2006 2007 2008Forecast

*Excluding Items

Mill

ions

($)

≈

$10

$14

$19 $19

Net Income*

$600

$601$607$571

$0

$200

$400

$600

$800

2005 2006 2007 2008

= Percent Growth

Forecast

*Excluding Items

$590 to

$610

Mill

ions

($)

10.0%6.3% -1.0% -2% to +2%

Average Shares Outstanding

211.5221.2225.4231.8

0

50

100

150

200

250

2005 2006 2007 2008

= Percent ReductionM

illio

ns

YTD

-1.0% -2.8% -1.9%-4.4%

Earnings Per Share*

$2.46$2.69 $2.72

$2.85

$0.00

$1.00

$2.00

$3.00

2005 2006 2007 2008

= Percent Growth

*Excluding Items

Forecast

$2.80 to

$2.90

11.1%

9.4% 1.1%3% to 7%

Free Cash Flow*

$0

$300

$600

$900

2005 2006 2007 2008

*Excluding Items

Forecast

Mill

ions

($) $543 $523

$924

$675 to $750

$250$235

$328$292

79%83%

100%105%

0

100

200

300

400

500

2005 2006 2007 20080%

20%

40%

60%

80%

100%

120%

Capital Expenditure SpendingIn

Mill

ions

($)

Rental Assets Other Cap Ex

Forecast

% of D

epreciation*

$145

$191

$123

$230 to $250

*Rolling 4 quarters

≈

$0

$1,000

$2,000

$3,000

$4,000

Sources Uses Free Cash Flow

$2.4 Billion

Free Cash Flow

Depreciation & Amortization

Net Income

Dividends

Discretionary

Other CAPEX

Taxes

Rental Assets

Working Capital

OtherReserve Account

Fin. Receivables

2005 through June 2008

$0

$1,000

$2,000

$3,000

$4,000

Sources Net Uses

Cash Sources and Uses

Free Cash Flow

Share Repurchase

Debt IncreaseDividends

Restructuring$1.0 Billion

Stock IssuanceAcquisitions

2005 through June 2008

Other

Debt Structure

Fixed Rate Debt 70%

Floating Rate Debt 30%

Fixed Rate Debt 74%

Floating Rate Debt 26%

December 2004 June 2008

Total = $4 Billion Total = $5 Billion

Segment Update

U.S. Mailing

• More lease maturities

• New products

• Channel management

• Payment solutions Organic Revenue Growth 0% - 2%

35% of total revenue

Growth Drivers

EBIT Target – Remain at 40%

International Mailing

• Asia-Pacific• New products• Financial services• Small business• Supplies• Meter discounts

19% of total revenue

Growth Drivers

Organic Revenue Growth 3% - 5%

EBIT Target – Grow to at least 20%

Production Mail

• High-speed equipment

• Customized products

• Direct mail solutions

• Private postal companies

10% of total revenue

Growth Drivers

Organic Revenue Growth 3% - 5%

EBIT Target – Grow to 15%

Software7% of total revenue

Growth Drivers

• Data integration

• Address management

• Document composition

• Location IntelligenceOrganic Revenue Growth 10% - 15%

EBIT Target – Grow to 20%

Management Services

18% of total revenue

Growth Drivers

• Expand customer base

• Off-site print utilization

• Grow internationally

• Higher value products

• Cross-selling

Organic Revenue Growth 2% - 4%

EBIT Target – Grow to 10%

Mail Services8% of total revenue

Growth Drivers

• Standard mail sorting

• Flat mail sorting

• Greater presort discounts

• Postage discount program

• International mail services

Organic Revenue Growth 9% - 13%

EBIT Target – Grow to 15% to 20%

Marketing Services

3% of total revenue

Growth Drivers

• Life event products

• Customized marketing programs

• Campaign management

• Customer loyalty programsOrganic Revenue Growth 8% - 12%

EBIT Target – Grow to 15%

0%

5%

10%

15%

Revenue Net Income EPS TotalShareholder

Return

33--5%5%

Long-Term Growth Targets

66--8%8%

88--10%10%

1111--13%13%

Transition Initiatives

$0

$100

$200

$300

2007 2008 YTD 2008 Total Forecast

$291$291

Transition Initiatives Charges (Pre-Tax)

$36$36

$50 to $100$50 to $100

Cash Non-Cash

$91$91

EPS ImpactEPS Impact $1.01$1.01 $0.11$0.11 $0.15 to $0.30$0.15 to $0.30

$200$200

$0

$50

$100

$150

$200

2007 2008 Forecast 2009 Forecast

$0$0

Transition Initiatives – Expected Benefits

≈≈$70$70

$150 to $170$150 to $170

$0

$20

$40

$60

$80

$100

2007 2008 YTD 2008 TotalForecast

2009 Forecast

$4$4

Transition Initiatives – Cash Payments

$36$36

$90 to $100$90 to $100

$40 to $80$40 to $80

0

200

400

600

800

1,000

1,200

2007 Program-to-Date Program TotalForecast

964964

Position Reductions

713 713

1,500 to 1,7001,500 to 1,700

U.S Non-U.S.

295295

1,700

251251

Reinvestment Opportunities•• Upgrade customer billing processesUpgrade customer billing processes

•• Improve orderImprove order--toto--cash processescash processes

•• Upgrade supply chainUpgrade supply chain

•• Expand marketing channels for Marketing ServicesExpand marketing channels for Marketing Services

•• Invest in innovation initiativesInvest in innovation initiatives

•• Expand software development in IndiaExpand software development in India

•• Outsource manufacturing in EuropeOutsource manufacturing in Europe

•• WebWeb--enable business processesenable business processes

•• Upgrade HR portal for employeesUpgrade HR portal for employees

GAAP ReconciliationPitney Bowes Inc.

Reconciliation of Reported Consolidated Results to Adjusted Results(Unaudited)

(Dollars in millions, except per share amounts)

Q2 2008YTD 2007 2006 2005 2004 2003

GAAP income from continuing operationsafter income taxes, as reported 254$ 361$ 566$ 473$ 405$ 404$

Restructuring and asset impairments 23 193 23 36 101 75 Legal settlements, net - - - - 13 (7) MapInfo Purchase accounting - 11 - - - - Other income - - (2) - - - Tax adjustment 7 36 20 56 - - Contributions to charitable foundations - - - 6 - 7

- - -

Income from continuing operations after taxes, as adjusted 284$ 601$ 607$ 571$ 519$ 479$

Provision for income taxes, as adjusted 153 324 327 294 261 226 Interest expense 113 242 213 188 158 164 Minority interest 9 19 14 10 6 5

Earnings before interest and income taxes (EBIT) 559$ 1,186$ 1,160$ 1,063$ 944$ 873$ - - -

Depreciation and amortization 194 383 363 332 307 290 Earnings before interest, taxes, depreciation

and amortization (EBITDA) 753$ 1,569$ 1,523$ 1,395$ 1,251$ 1,163$

GAAP diluted earnings per share, as reported 1.20$ 1.63$ 2.51$ 2.04$ 1.73$ 1.71$ Restructuring and asset impairments 0.11 0.88 0.10 0.16 0.43 0.32 Legal settlement - - - - 0.06 (0.03) MapInfo Purchase accounting - 0.05 - - - - Other income - - (0.01) - - - Tax adjustment 0.03 0.16 0.09 0.24 - - Contributions to charitable foundations - - - 0.03 - 0.03

Diluted earnings per share from continuing operations, as adjusted 1.34$ 2.72$ 2.69$ 2.46$ 2.22$ 2.03$