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Financial Update – Michael Monahan
Investor use onlyUpdate – September 10, 2008
1 January 2003 PBI internal

2. Michael Monahan
Executive Vice President and Chief Financial Officer

3. Financial Review

4. Revenue
$6,590
$7,000
$6,500
$6,000
to
$6,130
$6,700
$5,730
$5,000 $5,367
$4,000
$3,000
$2,000
$1,000
$0
2005 2006 2007 2008
Forecast
7.0%
6.7% 6% to 9%
11.1%
Reported
0.9%
Organic 5.6% 4.5% 0% to 2%

5. Revenue Per Employee
$175.9
$172.3
40,000 $180
$167.2
$157.0
$150
36,020
35,580
34,270
34,170
Revenue Per Employee
Number of Employees*
30,000
$120
20,000 $90
$60
10,000
$30
0 $0
Dec-05 Dec-06 Dec-07 Jun-08
*Headcount is average of previous 4 quarters

6. EBIT*
= Percent Growth
2.2% -2% to 0%
9.1% $1,171
$1,200
12.6%
$1,186
$1,160 $1,160
to
$1,063
$1,190
$900
Millions ($)
$600
$300
$0
2005 2006 2007 2008
Forecast
*Excluding Items

7. Net Interest Expense*
= Percent Increase
14%
$231
$250 -1% to -3%
13% $242
$235
to
19%
$200 $213
$240
$188
Millions ($)
$150
$100
$50
$0
2005 2006 2007 2008
Forecast
Average
5.5%
5.4% 4.7%to 4.8%
4.7%
Interest Rate
*Excluding Items

8. Taxes*
= Effective Tax Rate
$400
$322 34.3% to 34.7%
34.5% 34.3%
33.6%
$327 $324
$300
$294
Millions ($)
$200
$100
$0
2005 2006 2007 2008
Forecast
*Excluding Items

9. Minority Interest
$25
≈ $19
$19
$20
Millions ($)
$14
$15
$10
$10
$5
$0
2005 2006 2007 2008
Forecast
*Excluding Items

10. Net Income*
= Percent Growth
$800
$600 -2% to +2%
6.3% -1.0%
10.0%
$600
$607 $601 $590
Millions ($)
$571 to
$610
$400
$200
$0
2005 2006 2007 2008
Forecast
*Excluding Items

11. Average Shares Outstanding
= Percent Reduction
250 -1.0% -2.8% -1.9%
-4.4%
231.8 225.4 221.2
200 211.5
150
Millions
100
50
0
2005 2006 2007 2008
YTD

12. Earnings Per Share*
= Percent Growth
3% to 7%
$3.00 $2.85
1.1%
9.4%
11.1%
$2.80
$2.72
$2.69
to
$2.46 $2.90
$2.00
$1.00
$0.00
2005 2006 2007 2008
Forecast
*Excluding Items

13. Free Cash Flow*
$924
$900
$675 to $750
$543
$600
Millions ($)
$523
$300
$0
2005 2006 2007 2008
Forecast
*Excluding Items

14. Capital Expenditure Spending
Rental Assets Other Cap Ex
500 120%
105%
100%
100%
400
83%
≈79%
$328
In Millions ($)
% of Depreciation*
80%
$292
300 $230 to
$250
$235 $250 60%
200
40%
$191
$145
100 $123
20%
0 0%
2005 2006 2007 2008
Forecast
*Rolling 4 quarters

15. Free Cash Flow
2005 through June 2008
$4,000 Other
Reserve Account
Taxes
Discretionary
$3,000 $2.4
Depreciation &
Billion
Amortization
Dividends
$2,000
Net Income
Working Capital
Fin. Receivables
$1,000
Other CAPEX
Rental Assets
$0
Sources Uses Free Cash Flow

16. Cash Sources and Uses
2005 through June 2008
$4,000
Other
Restructuring
$1.0 Debt Increase
Billion Dividends
$3,000
Stock Issuance
Acquisitions
$2,000
Free Cash Flow
$1,000
Share
Repurchase
$0
Sources Net Uses

17. Debt Structure
June 2008
December 2004
Fixed
Fixed
Rate
Rate
Floating
Debt
Floating
Debt
Rate
74%
Rate
70%
Debt
Debt
26%
30%
Total = $4 Billion Total = $5 Billion

18. Segment Update

19. U.S. Mailing
35% of total revenue
Growth Drivers
• More lease maturities
• New products
• Channel management
Organic Revenue Growth 0% - 2%
• Payment solutions
EBIT Target – Remain at 40%

20. International Mailing
19% of total revenue
Growth Drivers
• Asia-Pacific
• New products
• Financial services
• Small business Organic Revenue Growth 3% - 5%
• Supplies
• EBIT Target – Grow to at least 20%
Meter discounts

21. Production Mail
10% of total revenue
Growth Drivers
• High-speed equipment
• Customized products
• Direct mail solutions
Organic Revenue Growth 3% - 5%
• Private postal companies
EBIT Target – Grow to 15%

22. Software
7% of total revenue
Growth Drivers
• Data integration
• Address management
• Document composition
Organic Revenue Growth 10% - 15%
• Location Intelligence
EBIT Target – Grow to 20%

23. Management Services
18% of total revenue
Growth Drivers
• Expand customer base
• Off-site print utilization
• Grow internationally
Organic Revenue Growth 2% - 4%
• Higher value products
• EBIT Target – Grow to 10%
Cross-selling

24. Mail Services
8% of total revenue
Growth Drivers
• Standard mail sorting
• Flat mail sorting
• Greater presort discounts
Organic Revenue Growth 9% - 13%
• Postage discount program
• EBIT Target – Grow to 15% to 20%
International mail services

25. Marketing Services
3% of total revenue
Growth Drivers
• Life event products
• Customized marketing programs
• Campaign management
Organic Revenue Growth 8% - 12%
• Customer loyalty programs
EBIT Target – Grow to 15%

26. Long-Term Growth Targets
15%
11-13%
8-10%
10%
6-8%
3-5%
5%
0%
Revenue Net Income EPS Total
Shareholder
Return

27. Transition Initiatives

28. Transition Initiatives Charges (Pre-Tax)
Cash Non-Cash
$291
$300
$200
$200
$50 to $100
$100
$91
$36
$0
2007 2008 YTD 2008 Total Forecast
EPS Impact $0.11
$1.01 $0.15 to $0.30

29. Transition Initiatives – Expected Benefits
$200
$150 to $170
$150
$100
≈$70
$50
$0
$0
2007 2008 Forecast 2009 Forecast

30. Transition Initiatives – Cash Payments
$90 to $100
$100
$40 to $80
$80
$60
$36
$40
$20
$4
$0
2007 2008 YTD 2008 Total 2009 Forecast
Forecast

31. Position Reductions
U.S Non-U.S.
1,500 to 1,700
1,200
1,700
964
1,000
251
800
713
600
400
295
200
0
2007 Program-to-Date Program Total
Forecast

32. Reinvestment Opportunities
• Upgrade customer billing processes
• Improve order-to-cash processes
• Upgrade supply chain
• Expand marketing channels for Marketing Services
• Invest in innovation initiatives
• Expand software development in India
• Outsource manufacturing in Europe
• Web-enable business processes
• Upgrade HR portal for employees

33. GAAP Reconciliation
Pitney Bowes Inc.
Reconciliation of Reported Consolidated Results to Adjusted Results
(Unaudited)
(Dollars in millions, except per share amounts)
Q2 2008
YTD 2007 2006 2005 2004 2003
GAAP income from continuing operations
$ 254 $ 361 $ 566 $ 473 $ 405 $ 404
after income taxes, as reported
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
$ 559 $ 1,186 $ 1,160 $ 1,063 $ 944 $ 873
Earnings before interest and income taxes (EBIT)
- - -
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
$ 1.20 $ 1.63 $ 2.51 $ 2.04 $ 1.73 $ 1.71
GAAP diluted earnings per share, as reported
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
$ 1.34 $ 2.72 $ 2.69 $ 2.46 $ 2.22 $ 2.03
operations, as adjusted