PRESS RELEASE

Exhibit 99.1
------------

PITNEY BOWES ANNOUNCES SECOND QUARTER RESULTS
---------------------------------------------

STAMFORD, Conn., July 25, 2005 - Pitney Bowes Inc. (NYSE:PBI) today
reported second quarter performance that was driven by continued strong results
in its core businesses. Revenue increased 13 percent to $1.36 billion. Net
income for the quarter was $139 million or $.60 per diluted share versus $.58
per diluted share in the prior year. Excluding the impact of restructuring
charges, the company's second quarter adjusted diluted earnings per share was
$.67 versus $.62 in the prior year.

Commenting on the company's financial performance during the quarter,
Chairman and CEO Michael J. Critelli noted, "This quarter we enjoyed continued
success in executing our strategies for delivering sustainable value. We are
particularly pleased with the positive momentum we are experiencing in our core
businesses and our expectation for future growth through our strategic
acquisitions."

"We are also pleased with the contributions from our strategic
acquisitions as they are successfully integrated into our operations. We target
acquisitions that allow us to expand in existing or adjacent growth markets that
leverage our expertise, provide incremental near-term growth, and position us
for stronger growth in the future. The recent acquisition of the marketing
services company, Imagitas, Inc. is a good example. This transaction expands our
presence in the growing marketing segment of the mailstream, provides immediate
added value to our customers and shareholders, and strengthens our ability to
provide longer-term value."

The results for the quarter were driven by ongoing strong worldwide
demand for the company's mailing systems, mail services, and supplies for its
broader base of digital products, as well as acquisitions completed within the
prior twelve months.

Excluding the impact of restructuring charges, earnings before interest
and taxes (EBIT) was $287 million and grew by 12 percent versus the second
quarter of 2004. The growth in EBIT enabled the company to offset an increase in
interest expense and a higher tax rate during the quarter compared with the
prior year.

During the quarter, the company took several actions as part of its
previously announced restructuring program and recorded after-tax charges of $17
million or $.07 per diluted share.

The company continues to pursue the spin-off of most of its Capital
Services business, which contributed approximately $.04 per diluted share in the
second quarter 2005, about equal to the contribution in the prior year.

The company generated $22 million in cash from operations during the
quarter. Adjusted free cash flow was $167 million. Adjusted free cash flow
reflects cash from operations after subtracting capital expenditures and
excluding the effects from the company's restructuring program and a $200
million bond posted with the Internal Revenue Service (IRS). The company posted
the bond in order to stop interest from accruing as we dispute potential tax
liabilities.

The company purchased approximately two million of its common shares
during the quarter for $85 million and has $51 million of remaining
authorization for future share repurchases.

Effective as of the beginning of the year, the company revised its
segments to reflect its product-based businesses separately from its
service-based businesses. Global Mailstream Solutions includes worldwide revenue
and related expenses from the sale, rental and financing of production mail and
inserting equipment, mail finishing, mail creation and shipping equipment,
related supplies and maintenance services, mailing and customer communication
software and postal payment solutions.

During the quarter Global Mailstream Solutions revenue increased 12
percent to $951 million and EBIT increased nine percent to $285 million, when
compared with the prior year.

In the U.S., the quarter's revenue growth was favorably impacted by
continued strong demand for networked digital mailing systems, especially for
small and mid-sized systems, and for supplies for digital products. The
quarter's results also included higher revenue from Document Messaging
Technologies that was driven by the contribution of Group 1 Software, which was
acquired in July 2004.

Outside of the U.S., revenue again grew at a double-digit rate. This
reflected good revenue growth in virtually all of the company's markets, with
the UK, Canada and Germany achieving significant revenue growth on a local
currency basis. These results were based on strong demand for digital mailing
systems, which are continuing to be introduced outside of the U.S., good growth
in mailing equipment placements with small businesses, and increased supplies
for digital products. In addition, revenue growth for the quarter benefited from
the fourth-quarter 2004 acquisition of Groupe Mag and favorable foreign currency
translation.

Global Business Services includes worldwide revenue and related
expenses from facilities management contracts, reprographics, document
management, and other value-added services to key vertical markets, and mail
services operations, which include presort mail services, international outbound
mail services and direct mail marketing services.

For the quarter, Global Business Services reported revenue growth of 20
percent to $369 million and EBIT growth of 46 percent to $23 million compared
with the prior year.

The company's management services operation reported three percent
revenue growth and double-digit EBIT growth for the quarter consistent with the
ongoing focus on higher value service offerings and administrative cost
reduction. The integration of Compulit, the litigation support business acquired
last quarter to grow capabilities within the legal vertical market, continues to
go well.

Mail services revenue more than doubled versus the prior year as a
result of continued expansion into additional sites, growth in its customer
base, and the acquisition of Imagitas during the quarter. EBIT margins improved
versus the prior quarter and were comparable to the prior year as the company
continued to invest in the expansion of its presort and international mail
network and integrate recently acquired sites.

Capital Services revenue for the quarter declined 20 percent to $41
million and EBIT declined two percent to $26 million.

The quarter's EBIT was favorably impacted by the sale of assets in
the portfolio. Earlier in the year, the company announced that it had entered
into a definitive agreement with Cerberus Capital Management, L.P. for a
sponsored spin-off of the Capital Services external leasing business. Subject to
customary regulatory approvals, the new entity will be an independent,
publicly traded company consisting of most of the assets in the Capital Services
segment.

For the full year, the company expects to record net after-tax
restructuring charges in the range of $13 million to $26 million, or $.06 to
$.11 per diluted share, net of the after-tax gain on the sale of its Main Plant
site, completed in the first quarter 2005. The restructuring charges relate to
the continued realignment and streamlining of the company's worldwide
infrastructure requirements. The timing of some of these restructuring
activities is uncertain and not completely within the company's control.

For the full year, the company expects revenue growth in the range
of nine to 11 percent and diluted earnings per share in the range of $2.52 to
$2.64. Excluding the impact of net restructuring charges and a charitable
contribution made in the first quarter, the company expects adjusted diluted
earnings per share in the range of $2.66 to $2.72.

The company anticipates third quarter revenue growth in the range of 10
to 12 percent and diluted earnings per share in the range of $.57 to $.65.
Excluding the impact of restructuring charges, the company expects adjusted
diluted earnings per share in the range of $.65 to $.67.

Management of Pitney Bowes will discuss the company's results in a
conference call today at 5:00 p.m. EDT. Instructions for listening to the
conference call over the WEB are available on the Investor Relations page of the
company's web site at http://www.pb.com/investorrelations.
-----------------------------------

Pitney Bowes engineers the flow of communication. The company is a $5.3
billion global leader of integrated mail and document management solutions
headquartered in Stamford, Connecticut. For more information about the company,
its products, services and solutions, visit www.pitneybowes.com.
-------------------

Pitney Bowes has presented in this earnings release diluted earnings
per share on an adjusted basis. Also, management has included a presentation of
free cash flow on an adjusted basis and earnings before interest and taxes
(EBIT). Management believes this presentation provides a reasonable basis on
which to present the adjusted financial information, and is provided to assist
in investors' understanding of the company's results of operations. The
company's financial results are reported in accordance with generally accepted
accounting principles (GAAP). However, the earnings per share and free cash flow
results are adjusted to exclude the impact of special items such as
restructuring charges and write downs of assets, which materially impact the
comparability of the company's results of operations. Restructuring charges
often reflect retooling of the business in an episodic way. Although they
represent actual expenses to the company, these episodic charges might mask the
periodic income associated with our business had there not been a retooling. The
use of free cash flow has limitations. GAAP cash flow has the advantage of
including all cash available to the company after actual expenditures for all
purposes. Free cash flow permits a shareholder insight into the amount of cash
that management could have available for discretionary uses if it made different
decisions about employing its cash. It adds back long-term commitments such as
capital expenditures, as well as special items like cash used for restructuring
charges. Of course, each of these items uses cash that is not otherwise
available to the company and are important expenditures. Management compensates
for these limitations by using a combination of GAAP cash flow and free cash
flow in doing its planning.

The adjusted financial information and certain financial measures such
as EBIT are intended to be more indicative of the ongoing operations and
economic results of the company. EBIT excludes interest payments and taxes, both
cash items, and as a result, has the effect of showing a greater amount of
earnings than net income. The company uses EBIT, in addition to net income, for
purposes of measuring the performance of its unit management team. The interest
rates and tax rates applicable to the company generally are outside the control
of management, and it can be useful to judge performance independent of those
variables.

The adjusted financial information should be viewed as a supplement to,
rather than a replacement for, the financial results reported in accordance with
GAAP. Further, our definition of this adjusted financial information may differ
from similarly titled measures used by other companies.

Pitney Bowes has provided in supplemental schedules attached for
reference adjusted financial information and a quantitative reconciliation of
the differences between the adjusted financial measures with the financial
measures calculated and presented in accordance with GAAP, except with respect
to our guidance because it would not be meaningful. Additional reconciliation of
adjusted financial measures to financial measures calculated and presented in
accordance with GAAP may be found at the company's web site
http://www.pb.com/investorrelations in the Investor Relations section.
- -----------------------------------

The statements contained in this news release that are not purely
historical are forward-looking statements with the meaning of Section 27A of the
Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934.
These statements may be identified by their use of forward-looking terminology
such as the words "expects," "anticipates," "intends" and other similar words.
Such forward-looking statements include, but are not limited to, statements
about possible restructuring charges and our future guidance, including our
expected revenue in the third quarter and full year 2005, and our expected
diluted earnings per share for the third quarter and for the full year 2005.
Such forward-looking statements involve risks and uncertainties that could cause
actual results to differ materially from those projected. These risks and
uncertainties include, but are not limited to: severe adverse changes in the
economic environment, timely development and acceptance of new products or
gaining product approval; successful entry into new markets; changes in interest
rates; and changes in postal regulations, as more fully outlined in the
company's 2004 Form 10-K Annual Report filed with the Securities and Exchange
Commission. In addition, the forward-looking statements are subject to change
based on the timing and specific terms of any announced acquisitions or business
spin-offs. The forward-looking statements contained in this news release are
made as of the date hereof and we do not assume any obligation to update the
reasons why actual results could differ materially from those projected in the
forward-looking statements.

================================================================================
Note: Consolidated statements of income for the three months ended June 30, 2005
and 2004, and consolidated balance sheets at June 30, 2005, March 31, 2005, and
June 30, 2004, are attached.

<TABLE>
<CAPTION>

Pitney Bowes Inc.
Consolidated Statements of Income
(Unaudited)
-----------

(Dollars in thousands, except per share data)

Three Months Ended June 30, Six Months Ended June 30,
----------------------------------- -----------------------------------
2005 2004 (1) 2005 2004 (1)
-------------- -------------- -------------- --------------
<S> <C> <C> <C> <C>
Revenue from:
Sales $ 386,587 $ 338,442 $ 768,014 $ 669,802
Rentals 205,494 200,635 407,135 402,073
Financing 161,387 147,993 318,662 296,222
Support services 197,297 159,946 392,231 318,359
Business services 368,529 307,576 717,632 610,367
Capital services 40,880 51,309 74,288 81,000
-------------- -------------- -------------- --------------
Total revenue 1,360,174 1,205,901 2,677,962 2,377,823
-------------- -------------- -------------- --------------
Costs and expenses:
Cost of sales 171,289 151,918 339,066 311,293
Cost of rentals 43,969 43,077 86,286 84,777
Cost of support services 102,997 85,114 203,171 170,737
Cost of business services 299,297 252,690 588,139 498,582
Cost of capital services - 13,017 - 13,017
Selling, general and administrative 415,659 364,440 824,043 725,259
Research and development 40,295 38,930 81,844 74,934
Restructuring 26,402 16,229 10,562 31,272
Charitable contribution - - 10,000 -
Interest, net 50,414 42,538 97,230 83,983
-------------- -------------- -------------- --------------
Total costs and expenses 1,150,322 1,007,953 2,240,341 1,993,854
-------------- -------------- -------------- --------------
Income before income taxes 209,852 197,948 437,621 383,969
Provision for income taxes 70,821 63,230 148,986 122,657
-------------- -------------- -------------- --------------
Net income $ 139,031 $ 134,718 $ 288,635 $ 261,312
============== ============== ============== ==============

Basic earnings per share $ 0.61 $ 0.58 $ 1.25 $ 1.13
============== ============== ============== ==============

Diluted earnings per share $ 0.60 $ 0.58 $ 1.24 $ 1.11
============== ============== ============== ==============

Average common and potential common
shares outstanding 232,500,409 234,122,702 232,993,622 234,521,468
============== ============== ============== ==============
<FN>
(1) Prior year amounts have been reclassified to conform with the current year
presentation.
</FN>
</TABLE>

<TABLE>
<CAPTION>

Pitney Bowes Inc.
Consolidated Balance Sheets
(Unaudited)
-----------

(Dollars in thousands, except per share data)

6/30/05 3/31/05 6/30/04
------------- ------------- -------------
<S> <C> <C> <C>

Assets
- ------
Current assets:
Cash and cash equivalents $ 276,884 $ 322,544 $ 328,282
Short-term investments, at cost which
approximates market 72,836 13,706 1,951
Accounts receivable, less allowances:
6/05 $50,977 3/05 $49,353 6/04 $38,096 617,066 596,435 480,314
Finance receivables, less allowances:
6/05 $66,837 3/05 $69,260 6/04 $69,449 1,342,058 1,357,906 1,339,262
Inventories 237,146 224,095 207,950
Other current assets and prepayments 210,791 201,748 198,011
------------- ------------- -------------
Total current assets 2,756,781 2,716,434 2,555,770
------------- ------------- -------------

Property, plant and equipment, net 633,991 638,811 662,011
Rental equipment and related inventories, net 481,852 487,703 453,855
Property leased under capital leases, net 2,572 2,897 2,176
Long-term finance receivables, less allowances:
6/05 $86,360 3/05 $93,240 6/04 $111,111 1,803,482 1,795,644 1,799,073
Investment in leveraged leases 1,558,000 1,551,035 1,541,186
Goodwill 1,609,849 1,437,679 1,003,002
Intangible assets, net 409,112 315,593 208,611
Other assets 906,828 872,924 856,682
------------- ------------- -------------
Total assets $ 10,162,467 $ 9,818,720 $ 9,082,366
============= ============= =============


Liabilities and stockholders' equity
- ------------------------------------
Current liabilities:
Accounts payable and accrued liabilities $ 1,478,953 $ 1,419,783 $ 1,312,469
Income taxes payable 116,290 259,897 187,838
Notes payable and current portion of
long-term obligations 1,459,078 747,268 1,151,359
Advance billings 483,344 466,329 383,856
------------- ------------- -------------
Total current liabilities 3,537,665 2,893,277 3,035,522
------------- ------------- -------------

Deferred taxes on income 1,750,902 1,756,189 1,715,412
Long-term debt 2,881,637 3,176,025 2,463,928
Other noncurrent liabilities 347,233 360,657 421,769
------------- ------------- -------------
Total liabilities 8,517,437 8,186,148 7,636,631
------------- ------------- -------------
Preferred stockholders' equity in a
subsidiary company 310,000 310,000 310,000

Stockholders' equity:
Cumulative preferred stock, $50 par value,
4% convertible 17 17 19
Cumulative preference stock, no par value,
$2.12 convertible 1,173 1,235 1,268
Common stock, $1 par value 323,338 323,338 323,338
Retained earnings 4,381,273 4,316,613 4,161,616
Accumulated other comprehensive income 123,156 121,540 38,588
Treasury stock, at cost (3,493,927) (3,440,171) (3,389,094)
------------- ------------- --------------
Total stockholders' equity 1,335,030 1,322,572 1,135,735
------------- ------------- --------------
Total liabilities and stockholders' equity $ 10,162,467 $ 9,818,720 $ 9,082,366
============= ============= ==============
</TABLE>

<TABLE>
<CAPTION>

Pitney Bowes Inc.
Revenue and EBIT
By Segment Group
June 30, 2005
(Unaudited)
-----------

(Dollars in thousands)
%
2005 2004 (2) Change
-------------- -------------- ------------
<S> <C> <C> <C>
Second Quarter
- --------------

Revenue
-------
Global Mailstream Solutions $ 950,765 $ 847,016 12%
Global Business Services 368,529 307,576 20%
Capital Services 40,880 51,309 (20%)
-------------- -------------- ------------

Total Revenue $ 1,360,174 $ 1,205,901 13%
============== ============== ============

EBIT (1)
--------
Global Mailstream Solutions $ 284,810 $ 261,162 9%
Global Business Services 23,133 15,829 46%
Capital Services 26,024 26,535 (2%)
-------------- -------------- ------------

Total EBIT 333,967 303,526 10%

Unallocated amounts:
Interest, net (50,414) (42,538)
Corporate expense (47,299) (46,811)
Restructuring (26,402) (16,229)
-------------- --------------
Income before income taxes $ 209,852 $ 197,948
============== ==============

<FN>
(1) Earnings before interest and taxes (EBIT) excludes general corporate
expenses.

(2) Prior year amounts have been reclassified to conform with the current year
presentation.
</FN>
</TABLE>


<TABLE>
<CAPTION>

Pitney Bowes Inc.
Revenue and EBIT
By Segment Group
June 30, 2005
(Unaudited)
-----------

%
(Dollars in thousands)
2005 2004 (2) Change
---------------- ---------------- ------------
<S> <C> <C> <C>
Year to Date
- ------------

Revenue
-------
Global Mailstream Solutions $ 1,886,042 $ 1,686,456 12%
Global Business Services 717,632 610,367 18%
Capital Services 74,288 81,000 (8%)
---------------- ---------------- ------------

Total Revenue $ 2,677,962 $ 2,377,823 13%
================ ================ ============

EBIT (1)
--------
Global Mailstream Solutions $ 558,492 $ 509,237 10%
Global Business Services 41,361 31,656 31%
Capital Services 45,528 47,717 (5%)
---------------- ---------------- ------------

Total EBIT 645,381 588,610 10%

Unallocated amounts:
Interest, net (97,230) (83,983)
Corporate expense (89,968) (89,386)
Charitable contribution (10,000) -
Restructuring (10,562) (31,272)
---------------- ----------------
Income before income taxes $ 437,621 $ 383,969
================ ================

<FN>
(1) Earnings before interest and taxes (EBIT) excludes general corporate
expenses.

(2) Prior year amounts have been reclassified to conform with the current year
presentation.
</FN>
</TABLE>
<TABLE>
<CAPTION>

Pitney Bowes Inc.
Reconciliation of Reported Consolidated Results to Adjusted Results
(Unaudited)
-----------

(Dollars in thousands, except per share amounts)

Three months ended June 30, Six months ended June 30,
------------------------------- ---------------------------------
2005 2004 2005 2004
-------------- --------------- ---------------- ---------------
<S> <C> <C> <C> <C>

GAAP income before income taxes, as reported $ 209,852 $ 197,948 $ 437,621 $ 383,969
Restructuring 26,402 16,229 10,562 31,272
Charitable contribution - - 10,000 -
-------------- --------------- ---------------- ---------------
Income before income taxes, as adjusted 236,254 214,177 458,183 415,241
Provision for income taxes, as adjusted 80,326 69,072 155,782 133,914
-------------- --------------- ---------------- ---------------
Income, as adjusted $ 155,928 $ 145,105 $ 302,401 $ 281,327
============== =============== ================ ===============


GAAP diluted earnings per share, as reported $ 0.60 $ 0.58 $ 1.24 $ 1.11
Restructuring 0.07 0.04 0.03 0.09
Charitable contribution - - 0.03 -
-------------- --------------- ---------------- ---------------

Diluted earnings per share, as adjusted $ 0.67 $ 0.62 $ 1.30 $ 1.20
============== =============== ================ ===============


GAAP net cash provided by operating activities,
as reported $ 21,750 $ 238,984 $ 214,109 $ 513,962
Capital expenditures (68,141) (72,378) (147,680) (146,847)
-------------- --------------- ---------------- ---------------
Free cash flow (46,391) 166,606 66,429 367,115
Restructuring payments 13,234 13,612 34,526 30,164
Charitable contribution - - 10,000 -
IRS bond payment 200,000 - 200,000 -
-------------- --------------- ---------------- ---------------
Free cash flow, as adjusted $ 166,843 $ 180,218 $ 310,955 $ 97,279
============== =============== ================ ===============


GAAP income before income taxes, as reported $ 209,852 $ 197,948 $ 437,621 $ 383,969
Interest, net 50,414 42,538 97,230 83,983
-------------- --------------- ---------------- ---------------
Earnings before interest and taxes (EBIT) 260,266 240,486 534,851 467,952
Restructuring 26,402 16,229 10,562 31,272
Charitable contribution - - 10,000 -
-------------- --------------- ---------------- ---------------
EBIT, as adjusted $ 286,668 $ 256,715 $ 555,413 $ 499,224
============== =============== ================ ===============
</TABLE>