COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

PITNEY BOWES INC. EXHIBIT (ii)
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COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES(1)

(Dollars in thousands)
<TABLE>
<CAPTION>
Years Ended December 31,
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1997 1996 1995 1994 1993(2)
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<S> <C> <C> <C> <C> <C>
Income from continuing
operations before
income taxes..................... $ 803,098 $684,383 $618,931 $566,507 $498,860

Add:
Interest expense................. 209,194 203,877 226,110 194,115 189,292
Portion of rents
representative of
the interest factor............. 39,404 40,538 42,064 42,339 33,842
Amortization of
capitalized interest............ 973 914 914 914 914
Minority interest in
the income of
subsidiary with
fixed charges................... 11,322 8,121 5,013 - -
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Income as adjusted................ $1,063,991 $937,833 $893,032 $803,875 $722,908
========== ======== ======== ======== ========
Fixed charges:
Interest expense................ $ 209,194 $203,877 $226,110 $194,115 $189,292
Capitalized interest............. - 1,201 2,178 733 -
Portion of rents
representative of
the interest factor............. 39,404 40,538 42,064 42,339 33,842
Minority interest,
excluding taxes, in
the income of
subsidiary with
fixed charges................... 17,285 11,838 7,607 - -
---------- -------- -------- -------- --------

$ 265,883 $257,454 $277,959 $237,187 $223,134
========== ======== ======== ======== ========

Ratio of earnings to
fixed charges.................... 4.00 3.64 3.21 3.39 3.24
========== ======== ======== ======== ========

Ratio of earnings to
fixed charges
excluding minority
interest......................... 4.23 3.79 3.28 3.39 3.24
========== ======== ======== ======== ========

</TABLE>
(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) Reclassified to reflect discontinued operations.