<TABLE>
Exhibit (12)
Pitney Bowes Inc.
Computation of Ratio of Earnings to Fixed Charges (1)
-----------------------------------------------------
(Dollars in thousands) Three Months Ended Nine Months Ended
September 30, September 30,
--------------------------- ---------------------------
2000 1999(2) 2000 1999(2)
------------ ------------ ------------ -----------
<S> <C> <C> <C> <C>
Income from continuing operations
before income taxes........................... $ 219,234 $ 279,037 $ 689,741 $ 722,147
Add:
Interest expense............................. 53,805 42,917 158,213 137,084
Portion of rents
representative of the
interest factor........................... 10,837 10,029 32,354 31,223
Amortization of capitalized
interest.................................. 244 244 730 730
Minority interest in the
income of subsidiary
with fixed charges........................ 3,712 3,061 10,537 8,726
------------ ------------ ------------ -----------
Income as adjusted.............................. $ 287,832 $ 335,288 $ 891,575 $ 899,910
============ ============ ============ ===========
Fixed charges:
Interest expense............................. $ 53,805 $ 42,917 $ 158,213 $ 137,084
Capitalized interest......................... 870 - 2,383 -
Portion of rents
representative of the
interest factor........................... 10,837 10,029 32,354 31,223
Minority interest, excluding
taxes, in the income of
subsidiary with fixed charges............. 5,060 4,592 15,174 13,073
------------ ------------ ------------ -----------
Total fixed charges......................... $ 70,572 $ 57,538 $ 208,124 $ 181,380
============ ============ ============ ===========
Ratio of earnings to
fixed charges................................ 4.08 5.83 4.28 4.96
============ ============ ============ ===========
Ratio of earnings to fixed
charges excluding minority
interest..................................... 4.34 6.27 4.57 5.29
============ ============ ============ ===========
<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 nine months ended
September 30, 1999.
Including these amounts in fixed charges, the ratio of earnings to fixed
charges would be 5.76 and 4.86 for the three and nine months ended
September 30, 1999, respectively. The ratio of earnings to fixed charges
excluding minority interest would be 6.20 and 5.18 for the three and
nine months ended September 30, 1999, respectively.
</FN>
</TABLE>