<TABLE>
Exhibit (12)
Pitney Bowes Inc.
Computation of Ratio of Earnings to Fixed Charges (1)
-----------------------------------------------------
(Dollars in thousands)
<CAPTION>
Three Months Ended Six Months Ended
June 30, June 30,
--------------------------- ---------------------------
2000 1999(2) 2000 1999(2)
------------ ------------ ------------ -----------
<S> <C> <C> <C> <C>
Income from continuing operations
before income taxes........................... $ 245,970 $ 233,870 $ 470,507 $ 443,110
Add:
Interest expense............................. 55,415 48,108 104,408 94,167
Portion of rents
representative of the
interest factor........................... 10,714 10,412 21,517 21,194
Amortization of capitalized
interest.................................. 243 243 486 486
Minority interest in the
income of subsidiary
with fixed charges........................ 3,543 2,792 6,825 5,665
------------ ------------ ------------ -----------
Income as adjusted.............................. $ 315,885 $ 295,425 $ 603,743 $ 564,622
============ ============ ============ ===========
Fixed charges:
Interest expense............................. $ 55,415 $ 48,108 $ 104,408 $ 94,167
Capitalized interest......................... 974 - 1,513 -
Portion of rents
representative of the
interest factor........................... 10,714 10,412 21,517 21,194
Minority interest, excluding
taxes, in the income of
subsidiary with fixed charges............. 5,252 4,149 10,114 8,481
------------ ------------ ------------ -----------
Total fixed charges...................... $ 72,355 $ 62,669 $ 137,552 $ 123,842
============ ============ ============ ===========
Ratio of earnings to
fixed charges................................ 4.37 4.71 4.39 4.56
============ ============ ============ ===========
Ratio of earnings to fixed
charges excluding minority
interest..................................... 4.65 5.00 4.68 4.85
============ ============ ============ ===========
<FN>
(1) The computation of the ratio of earnings to fixed charges has been
computed by dividing income from continuing operations before income
taxes as adjusted by fixed charges. Included in fixed charges is
one-third of rental expense as the representative portion of interest.
(2) Interest expense and the portion of rents representative of the interest
factor of the discontinued operations of AMIC have been excluded from
fixed charges in the computation for the three and six months ended June
30, 1999.
Including these amounts in fixed charges, the ratio of earnings to fixed
charges would be 4.61 and 4.45 for the three and six months ended June
30, 1999, respectively. The ratio of earnings to fixed charges excluding
minority interest would be 4.88 and 4.72 for the three and six months
ended June 30, 1999, respectively.
</FN>
</TABLE>
