COMPANY PROFILE

Small and Medium Business (SMB) Solutions Enterprise Business Solutions Shareholder Value Financial Stability Looking Forward

Pitney Bowes Inc. (NYSE: PBI) is a global technology leader whose products, services and solutions deliver value in the mailstream and beyond. The company offers a full suite of equipment, supplies, software and services for end-to-end mailstream solutions which enable its customers to optimize the flow of physical and digital documents and packages, across their operations.

Headquartered in Stamford, Connecticut, the company operates in seven business segments within two business groups: the Small and Medium Business (SMB) Solutions group and the Enterprise Business Solutions group, based on the customers they primarily serve.

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The SMB Solutions group includes worldwide revenue and related expenses from the sale, rental and financing of mail finishing, mail creation, shipping equipment and software; supplies; mailing support and other professional services; and payment solutions;

The Enterprise Business Solutions group includes worldwide revenue and related expenses from the sale, financing and support of production mail equipment and related support and other professional services; mailing, customer communication, and location intelligence software; facilities management services, secure mail services, reprographics, document management, and other value-added services for targeted customer markets; mail services operations, which include presort mail services and cross-border mail services; and marketing services.

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Pitney Bowes Drives Shareholder Value

• Pitney Bowes is a market leader in the global mailstream industry, with solutions that help customers create, produce, distribute and manage the digital and physical documents and packages that flow into and out of organizations and homes.
• Pitney Bowes has about 2 million customers worldwide of all sizes and across all business segments.
• Pitney Bowes generates consistently strong free cash flow, much of which is returned to investors in the form of dividends.
• Pitney Bowes has increased its dividend every year for the last 28 years. As of June 30, 2010, the dividend yield was about 6.6 percent.

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Financial Stability
Throughout the economic turmoil that began in 2008, the company has maintained an investment grade credit rating on its long-term debt and for its commercial paper.

Additionally, as of June 30, 2010:

• The company has $143 million in commercial paper balances;
• The company has no long-term debt maturing until 2010;
• The company has a $1.25 billion credit facility which supports more than 8 times its current commercial paper balance;
• The company’s debt and credit facility have no financial covenants or material adverse clauses, the credit facility does not mature until 2013, and all of the original bank commitments remain.

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Looking Forward
In 2009 the company took definitive actions to position itself for long-term growth. Throughout 2009, the company enhanced productivity, reduced expenses, and increased its variable cost structure. These actions resulted in year-over-year EBIT margin improvements in 4 of its business segments: Software, Management Services, Mail Services and Marketing Services. In addition, the company reduced its reported selling, general and administrative (SG&A) expenses by $170 million when compared with the prior year.

On July 30, 2009 the company announced its commitment to identify and implement meaningful fundamental structural and process improvements across the organization. The expected improvements to the company’s business practices, processes and operating model, which will be implemented over a period of 18 to 24 months, will result in a more integrated global business with enhanced go-to-market options and a flexible and variable cost infrastructure. This strategic transformation initiative will lay the foundation for increasing long-term customer and shareholder value by positioning the company to invest in areas of growth with processes and systems that will result in increased leverage across its businesses.

The company remains committed to pursuing its growth strategies. Pitney Bowes will continue to look for opportunities that foster innovation in current markets and diversification into adjacent spaces.

Pitney Bowes’ management has articulated 5 priorities for the company:

• Solidify core mailing performance
• Focus on higher growth areas
• Increase customer value
• Improve operational efficiency

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* For a reconciliation of GAAP earnings per share from continuing operations to adjusted earnings per share click here.