Pitney Bowes Intends to Collaborate On Delivering Its dMail(TM) Solution Via Microsoft's Cloud Platform

STAMFORD, Conn., October 27, 2008 - Pitney Bowes Management Services, Inc. (PBMS), a wholly owned subsidiary of Pitney Bowes Inc. (NYSE:PBI), announced its intent to work together with Microsoft Corp. on exploring the business opportunity for making Pitney Bowes dMail digital mail service available in Azure Services Platform.

The Pitney Bowes dMail offering is a solution based on Microsoft technology for digitizing inbound business correspondence and inter-office mail. With the Azure Services Platform, the dMail solution will be easier to deploy because the cloud platform provides a virtual, secure and scalable infrastructure to host it.

Pitney Bowes Management Services is another example of how Pitney Bowes is delivering innovative business solutions on the Microsoft platform, said Eddie Amos, general manager, Worldwide Partner Evangelism, Microsoft. This expanded strategic alliance will meet the unique needs of our mutual customers.

Todays business and economic environments are demanding more creative solutions to address real estate, transportation and general business costs as well as employee mobility and sustainability concerns. As a global leader in mailing communications products and services, Pitney Bowes dMail solution for converting and delivering mail digitally has established market success, and we expect our efforts to extend this service to the Azure Services Platform will benefit a broader range of common customers, stated Maxim Lesur, managing director, Worldwide Postal Industry, Microsoft.

Pitney Bowes dMail solution provides a number of benefits to the Fortune 1000, including enterprise cost savings, bringing business correspondence mail under corporate records policies and regulatory compliance, and environmental sustainability benefits. It supports workplace flexibility and real estate consolidation, among other areas.

Although PBMS has thus far provided the dMail solution as an on-premise, behind-the-firewall solution, an increasing number of clients have expressed interest in an off-site, hosted approach, explained Vincent De Palma, executive vice president and president, PBMS. We see this as an opportunity to address these needs by creating a dMail solution that exists in a hosted, cloud infrastructure and also leverages our other assets, such as regional customer service centers, operational expertise, and our ability to execute solutions, enabling us to deliver a new model of service to our customers. We look forward to working with Microsoft, a leader in cloud platform technology, in exploring this opportunity.

Pitney Bowes Management Services provides on-site and off-site outsourced mail, print and document management solutions to the Fortune 1000, AmLaw 200 and Federal Government agencies. Pitney Bowes Inc. is a mailstream technology company that helps organizations manage the flow of information, mail, documents and packages. Our 36,000 employees deliver technology, service and innovation to more than two million customers worldwide. The company was founded in 1920 and annual revenues now total $6.3 billion. More information is available at www.pb.com.

This press release contains forward-looking statements that involve risks and uncertainties. For this purpose, any statement that is not a statement of historical fact is a forward-looking statement, including without limitation statements concerning market demand for Pitney Bowes Management Services solutions and services, the potential benefits of these solutions to customers, and the integration of new solutions with existing solutions. Factors that may cause these statements not to be true or to differ materially from the manner in which they are presented include market acceptance of Pitney Bowes Management Services offerings, decreased spending by customers or potential customers on technology solutions and the impact of economic trends that affect generally the market for Pitney Bowes Management Services offerings. Pitney Bowes Management Services takes no responsibility to update any forward-looking statements.