COMPUTATION OF RATIO OF EARNING TO FIXED CHARGES

Exhibit (12)
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Pitney Bowes Inc.
Computation of Ratio of Earnings to Fixed Charges (1)
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(Dollars in thousands)
<TABLE>
<CAPTION>
Three Months Ended March 31,
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2004 2003
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<S> <C> <C>

Income before income taxes.................... $ 186,021 $ 166,275

Add:
Interest expense............................ 41,472 43,799
Portion of rents representative
of the interest factor.................... 13,215 11,665
Amortization of capitalized
interest.................................. 369 368
Minority interest in the income of
subsidiary with fixed charges............. 910 1,097
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Income as adjusted............................ $ 241,987 $ 223,204
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Fixed charges:
Interest expense............................ $ 41,472 $ 43,799
Portion of rents representative
of the interest factor.................... 13,215 11,665
Minority interest, excluding taxes, in the
income of subsidiary with fixed charges... 1,337 1,601
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Total fixed charges........................... $ 56,024 57,065
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Ratio of earnings to fixed charges............ 4.32 3.91
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<FN>
(1) The computation of the ratio of earnings to fixed charges has been
computed by dividing income before income taxes as adjusted by fixed
charges. Included in fixed charges is one-third of rental expense as the
representative portion of interest.
</FN>
</TABLE>