STAMFORD, Conn.--(BUSINESS WIRE)--Feb. 9, 1998--Today, Pitney Bowes Inc. (NYSE: PBI) announced two initiatives approved by the Board of Directors to enhance shareholder value:

• an additional authorization of 4 million shares available for repurchase, resulting in a total current authorization of 11 million shares, and
• a 12.5-percent increase in the dividend on common stock, marking the sixteenth consecutive year of double-digit increases.

Chairman and CEO Michael J. Critelli said, "In 1997 our strategy to maximize the value of our shareholders' investment in Pitney Bowes resulted in a greater focus on profitable growth, continuous refinement of business operations and processes and an ongoing application of new technology to help improve customers' operating efficiency. We are announcing the shareholder value initiatives today because of our confidence in the opportunities for sustained growth in profitability in 1998. The combination of additional share repurchase authorization and significant dividend increase reflects our continuing efforts to enhance the total return to all our shareholders."

The cash generated from operations and reductions in our external financing portfolio, will be used to invest in core businesses, pay dividends and repurchase shares from time to time in the open market.

In other actions by the board today, the directors raised the quarterly cash dividend on the company's common stock to 22.5 cents per share on a post-split basis, up from 20 cents per share, payable March 12, 1998, to stockholders of record February 25, 1998. The directors also declared a quarterly cash dividend of 53 cents per share on the company's $2.12 convertible preference stock, payable April 1, 1998, to stockholders of record March 17, 1998, and a quarterly cash dividend of 50 cents per share on the company's 4% convertible cumulative preferred stock, payable May 1, 1998, to stockholders of record April 16, 1998.

Pitney Bowes is a global provider of informed mail and messaging solutions.

The forward-looking statements contained in this news release involve risks and uncertainties and are subject to change based on various important factors including timely development and acceptance of new products, gaining product approval, successful entry into new markets, and changes in postal regulations, as more fully outlined in the company's 1996 Form 10-K Annual Report filed with the Securities and Exchange Commission.

     Sheryl Y. Battles
     Executive Director,
     External Affairs
     (203) 351-6808
       or
     Financial -
     Michael Monahan
     Director,
     Investor Relations
     (203) 351-6349