Business Mailers Not Up to Speed With Regard to Postal Changes According to Pitney Bowes.

Business Editors

STAMFORD, Conn.--(BUSINESS WIRE)--Oct. 23, 2000

- Only 27% of Mail Center Managers are Aware of the Proposed

Postal Rate Increase

- Pitney Bowes Offers Tips to Help Offset Nearly $2 Billion

Increase Next Year

Pitney Bowes Inc. (NYSE: PBI) released today a list of additional findings resulting from a recent study commissioned by the company. This study determined that 73% of the mail center managers in the U.S. were unaware of the proposed postal rate increase scheduled for January 2001. The proposed increase averages 6.5 and this will increase postage expenses for business mailers by nearly $2 billion in 2001.

In addition, this survey presented respondents with five true/false statements, and only two percent (2%) of the mailroom managers responded to all five statements correctly. Six in ten (62%) did not answer three or more questions correctly. The statement that the largest percentage (74%) of mailroom managers responded to correctly concerned their knowledge of the availability of delivery confirmation for Priority Mail. 61% also knew that the postal rates last increased in January 1999. 41% were aware that presort rates can generate discounts of over 25 percent, but only a quarter (26%) were aware that mail does not have to be bar-coded to qualify for discounts. And finally, just two in ten (21%) correctly knew the proposed price of a first-class stamp is 34(cent).

"Based on the survey results, business mailers seem unaware of the proposed rate change, postal policy and the available discounts provided by the U.S.P.S. Mail Center managers are tasked with many duties and keeping up with postal changes can be difficult." said Tim Bates, Vice President, Marketing for Pitney Bowes Mailing Systems. "We work hard to educate mailers on the ways to increase productivity and reduce cost. Our solutions will aid businesses in avoiding inefficient and costly mailing practices."

Pitney Bowes offers several effective solutions that companies can implement in order to maximize productivity and reduce costs. These tips can dramatically impact businesses of any size.

- Reduce postage expenses up to 20% through accurate, electronic weighing and
rating

- Eliminate time-consuming trips to the post office with postage resets by
phone, online or via modem.

- Reduce expense associated with costly address labels and increase mail
openability through direct impression printing

- Ensure the deliverability of mail using address verification software

- Presort and print postal barcodes to qualify mail for discounts of 30% or
more

- Automate folding and inserting (20 times faster than manual processing) for
optimum output and accuracy

The study also revealed that the vast majority of business mailers are not taking advantage of postal discounts. Less than one-fifth (19%) of the mail center managers are currently presorting or barcoding in order to benefit from work sharing discounts, and these discounts can have a significant impact on a company's bottom line.

The referenced study was commissioned by the Mailing Systems Division of Pitney Bowes and conducted by ICR Research Group in September 2000. The survey consisted of 501 telephone interviews with Mail Center managers in companies with 100 employees or more. For more information on the study, please contact to Kathy Raymond (Pitney Bowes, MSC 54-11, 1 Elmcroft Road, Stamford, CT 06926-0700) or Amy Firsching (Ogilvy Public Relations Worldwide, 909 Third Avenue, New York, NY 10022-4731).

Pitney Bowes Inc. is a $4.4 billion global provider of informed mail and messaging management. It serves 118 countries through dealer and direct operations. For more information about the company, visit www.pitneybowes.com.