STATEMENT RE COMPUTATION OF PER SHARE EARNINGS

PITNEY BOWES INC. EXHIBIT (iii)
STATEMENT RE COMPUTATION OF PER SHARE EARNINGS

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<CAPTION>
(Dollars in thousands, except share data) Years Ended December 31,
1995 1994 1993(1) 1992(1) 1991(1)
<S> <C> <C> <C> <C> <C>
Primary
Income from continuing operations(2) $ 407,708 $ 348,428 $ 305,690 $ 260,736(3) $ 242,649(3)
Discontinued operations 175,431 45,161 47,495 54,129 52,648
Effect of accounting changes - (119,532) - (214,631) -
Net income $ 583,139 $ 274,057 $ 353,185 $ 100,234 $ 295,297

Weighted average number of common shares
outstanding 151,140,274 156,459,437 157,766,700 157,562,020 158,180,010
Preference stock, $2.12 cumulative convertible 785,355 847,430 905,231 1,085,684 1,386,566
Stock option and purchase plans 432,845 421,761 696,721 581,782 371,838
Convertible loan stock - - - 5,926 16,266
Total common and common equivalent shares
outstanding 152,358,474 157,728,628 159,368,652 159,235,412 159,954,680

Income per common and common equivalent share - primary:
Continuing operations $ 2.68 $ 2.21 $ 1.92 $ 1.64 $ 1.52
Discontinued operations 1.15 .29 .30 .34 .33
Effect of accounting changes - (.76) - (1.35) -
Net income $ 3.83 $ 1.74 $ 2.22 $ .63 $ 1.85
Fully Diluted
Income from continuing operations $ 407,709 $ 348,430 $ 305,694 $ 260,740(3) $ 242,653(3)
Discontinued operations 175,431 45,161 47,495 54,129 52,648
Effect of accounting changes - (119,532) - (214,631) -
Net income $ 583,140 $ 274,059 $ 353,189 $ 100,238 $ 295,301

Weighted average number of common shares
outstanding 151,140,274 156,459,437 157,766,700 157,562,020 158,180,010
Preference stock, $2.12 cumulative convertible 785,355 847,430 905,231 1,085,684 1,386,566
Stock option and purchase plans 460,348 439,756 706,981 606,915 410,102
Convertible loan stock - - - 5,926 16,266
Preferred stock, 4% cumulative convertible 11,502 14,265 23,464 26,409 28,930
Total common and common equivalent shares
outstanding 152,397,479 157,760,888 159,402,376 159,286,954 160,021,874

Income per common and common equivalent share - fully diluted:
Continuing operations $ 2.68 $ 2.21 $ 1.92 $ 1.64 $ 1.52
Discontinued operations 1.15 .29 .30 .34 .33
Effect of accounting changes - (.76) - (1.35) -
Net income $ 3.83 $ 1.74 $ 2.22 $ .63 $ 1.85
<FN>
(1) Reclassified to reflect discontinued operations.
(2) Income from continuing operations was adjusted for preferred dividends.
(3) Income from continuing operations was adjusted for interest on convertible debt.
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