Mail Services revenue grew versus the prior year because of increased presort mail volumes for standard mail and improved penetration in all of the workshare discount categories. The company’s presort network continues to enhance its processing efficiency. EBIT margin benefited from ongoing productivity initiatives and improved margins in the International Mail Services portion of the business. EBIT margin also benefited from an additional insurance reimbursement the company received related to the fire at its Dallas presort facility last year.

Marketing Services
			1Q 2012		Y-O-Y Change		Change ex Currency
	Revenue		$30 million		1%		1%
	EBIT		$5 million		16%

Revenue grew due to an increased number of household moves this quarter compared with the prior year. EBIT benefited from reduced print production costs and ongoing productivity initiatives.

2012 Guidance

This guidance discusses future results which are inherently subject to unforeseen risks and developments. As such, discussions about the business outlook should be read in the context of an uncertain future, as well as the risk factors identified in the safe harbor language at the end of this release.

The company is updating its 2012 annual guidance for GAAP earnings per diluted share from continuing operations to reflect the first quarter net tax benefits plus the net benefit from the first quarter sale of leveraged lease assets in Canada.

The company now expects GAAP earnings per diluted share from continuing operations to be in the range of $2.22 to $2.42. This includes $0.11 per share of net tax benefits and a $0.06 per share benefit from the sale of leveraged lease assets in Canada. Excluding these two items, adjusted earnings per diluted share from continuing operations for 2012 are still expected to be in the range of $2.05 to $2.25.

The company still expects 2012 revenue, excluding the impacts of currency, to be in a range of 2 percent growth to a decline of 2 percent as compared to 2011, and expects free cash flow to be in the range of $700 million to $800 million.

Management of Pitney Bowes will discuss the company’s results in a broadcast over the Internet today at 5:00 p.m. EDT. Instructions for listening to the earnings results via the Web are available on the Investor Relations page of the company’s web site at www.pb.com/investorrelations.

Pitney Bowes is a $5.3 billion global leader whose products, services and solutions deliver value within the mailstream and beyond. For more information visit www.pitneybowes.com .