Pitney Bowes (PBI)

Capital Expenditures

During the first three months of 2009, capital expenditures included $24.6 million in net additions to property, plant and equipment and $23.2 million in net additions to rental equipment and related inventories compared with $29.4 million and $27.5 million, respectively, in the same period in 2008.

Capital Expenditures

During 2008, capital expenditures included net additions of $122.0 million to property, plant and equipment and $115.3 million in net additions to rental equipment and related inventories compared with $142.1 million and $122.6 million, respectively, in 2007. The decrease in property, plant and equipment is due mostly to the continuing shift toward leased equipment in our Management Services segment.

Capital Expenditures

During the first nine months of 2008, capital expenditures included $86.3 million in net additions to property, plant and equipment and $83.7 million in net additions to rental equipment and related inventories compared with $107.9 million and $94.1 million, respectively, in the same period in 2007.

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Capital Expenditures

During the first six months of 2008, capital expenditures included $58.2 million in net additions to property, plant and equipment and $57.1 million in net additions to rental equipment and related inventories compared with $62.3 million and $66.1 million, respectively, in the same period in 2007.

Capital Expenditures

During the first three months of 2008, capital expenditures included $29.4 million in net additions to property, plant and equipment and $27.5 million in net additions to rental equipment and related inventories compared with $31.6 million and $36.0 million, respectively, in the same period in 2007.

Capital Expenditures

During 2007, capital expenditures included net additions of $142 million to property, plant and equipment and $123 million in net additions to rental equipment and related inventories compared with $137 million and $191 million, respectively, in 2006. The decrease in rental asset additions relates primarily to the wind-down of our customers’ transition to digital meters.

Capital Expenditures

During the first nine months of 2007, capital expenditures included $107.9 million in net additions to property, plant and equipment and $94.1 million in net additions to rental equipment and related inventories compared with $95.7 million and $148.2 million, respectively, in the same period in 2006.

We expect capital expenditures for the full year of 2007 to be lower than the prior year, primarily due to the wind-down of our customers’ transition to digital meters.

Capital Expenditures

During the first six months of 2007, capital expenditures included $62.3 million in net additions to property, plant and equipment and $66.1 million in net additions to rental equipment and related inventories compared with $65.4 million and $97 million, respectively, in the same period in 2006.

We expect capital expenditures for the full year of 2007 to be approximately the same as the prior year. These investments will also be affected by the timing of our customers’ transition to digital meters.

Capital Expenditures

During the first three months of 2007, capital expenditures included $31.6 million in net additions to property, plant and equipment and $36.0 million in net additions to rental equipment and related inventories compared with $33.5 million and $49.5 million, respectively, in the same period in 2006.

We expect capital expenditures for the full year of 2007 to be approximately the same as 2006. These investments will also continue to be affected by the timing of our customers’ transition to digital meters.

Capital Expenditures

During 2006, capital expenditures included net additions of $137 million to property, plant and equipment and $191 million in net additions to rental equipment and related inventories compared with $147 million and $145 million, respectively, in 2005. The increase in rental asset additions relates primarily to the continued migration to digital postage meters.

We expect capital expenditures in 2007 to be approximately the same as 2006. These investments will also continue to be affected by the timing of our customers’ transition to digital meters.

Capital Expenditures

          During the first nine months of 2006, capital expenditures included $95.7 million in net additions to property, plant and equipment and $148.2 million in net additions to rental equipment and related inventories compared with $104.9 million and $110.5 million, respectively, in the same period in 2005. The addition of rental equipment relates primarily to postage meters and increased over the prior year due to higher placements of our digital meters during the nine months ended September 30, 2006.

          We expect capital expenditures for the full year of 2006 to be slightly higher than the prior year. These investments will also be affected by the timing of our customers’ transition to digital meters.

     During the first six months of 2006, capital expenditures included $65.4 million in net additions to property, plant and equipment and $97 million in net additions to rental equipment and related inventories compared with $69 million and $78.7 million, respectively, in the same period in 2005. The addition of rental equipment relates primarily to postage meters and increased over the prior year due to higher placements of our digital meters during the six months ended June 30, 2006.

     We expect capital expenditures for the full year of 2006 to be approximately the same as the prior year. These investments will also be affected by the timing of our customers’ transition to digital meters.