UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K
CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): August 2, 1999

PITNEY BOWES INC.

Commission File Number: 1-3579

State of Incorporation                         IRS Employer Identification No.
Delaware                                            06-0495050

World Headquarters
Stamford, Connecticut 06926-0700
Telephone Number: (203) 356-5000

Item 5 - Other Events.

The U.S.  Postal Service and Pitney Bowes Inc.  (NYSE:PBI)  announced today
that they had reached  agreement  resolving a lawsuit  filed by Pitney  Bowes in
1997. The lawsuit arose out of a dispute over a 1978 Statement of  Understanding
authorizing Pitney Bowes to offer Postage by PhoneR, its proprietary  version of
the Computerized Meter Resetting System (CMRS).
CMRS,  first  offered by Pitney Bowes in 1979,  enables  customers to reset
their postage meters over telephone lines. In 1995, as a part of a review of its
cash management practices and postage meter policies, the Postal Service revised
its regulations for CMRS and terminated the 1978 Statement of Understanding. The
Court upheld the revised regulations but ordered a trial on the merits of Pitney
Bowes' claim for money damages.
Under the terms of the agreement, Pitney Bowes will receive $51.75 million.
This payment will  represent a portion of the financial  benefit that the Postal
Service obtained as a result of the revised regulations.

Signatures
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Pursuant to the  requirements  of the Securities  Exchange Act of 1934, the
registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned thereunto duly authorized.

PITNEY BOWES INC.

August 2, 1999

/s/ M. L. Reichenstein
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M. L. Reichenstein
Vice President and Chief Financial Officer
(Principal Financial Officer)

/s/ A. F. Henock
-----------------------------------
A. F. Henock
Vice President - Controller
and Chief Tax Counsel
(Principal Accounting Officer)