Pitney Bowes (PBI)

Defined Benefit Pension Plans

The components of net periodic benefit cost for defined benefit pension plans for the three months ended March 31, 2009 and 2008 are as follows:

As we previously disclosed in our Consolidated Financial Statements for the year ended December 31, 2008, we expect to contribute up to $10 million to each of our U.S. and foreign pension plans during 2009. We will reassess our funding alternatives as the year progresses. At March 31, 2009, $2.4 million and $3.4 million of contributions have been made to the U.S. and foreign pension plans, respectively.

Our pension funds’ actual asset returns have performed in line with our portfolio benchmark indices. Our funded status will be highly dependent on the market returns and the prevailing discount rate used to value our year-end obligations.

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Defined Benefit Pension Plans

The components of net periodic benefit cost for defined benefit pension plans for the three months ended September 30, 2008 and 2007 are as follows:

The components of net periodic benefit cost for defined benefit pension plans for the nine months ended September 30, 2008 and 2007 are as follows:

As we previously disclosed in our Consolidated Financial Statements for the year ended December 31, 2007, we expect to contribute up to $10 million to each of our U.S. and foreign pension plans during 2008. At September 30, 2008, $6.8 million and $6.7 million of contributions have been made to the U.S. and foreign pension plans, respectively.

Our pension funds’ actual asset returns have declined in line with the market indices. Our funded status will be highly dependent on the market returns and the prevailing discount rate used to value our year-end obligations. The funds’ 2008 year-end asset values and year-end assumptions will affect the Company’s pension expense beginning in 2009.

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The components of net periodic benefit cost for defined benefit pension plans for the three months ended March 31, 2008 and 2007 are as follows:

As we previously disclosed in our Consolidated Financial Statements for the year ended December 31, 2007, we expect to contribute up to $10 million to each of our U.S. and foreign pension plans during 2008. At March 31, 2008, $1.2 million and $2.3 million of contributions have been made to the U.S. and foreign pension plans, respectively.

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The components of net periodic benefit cost for defined benefit pension plans for the three months ended September 30, 2007 and 2006 are as follows:

The components of net periodic benefit cost for defined benefit pension plans for the nine months ended September 30, 2007 and 2006 are as follows:

We expect to contribute up to $9.6 million and $10 million, respectively, to our U.S. and foreign pension plans during 2007. At September 30, 2007, $7.4 million and $8.3 million of contributions have been made to the U.S. and foreign pension plans, respectively.

Defined Benefit Pension Plans

The components of net periodic benefit cost for defined benefit pension plans for the three months ended March 31, 2007 and 2006 are as follows:

We previously disclosed in our Consolidated Financial Statements for the year ended December 31, 2006 that we expect to contribute up to $8 million and $10 million, respectively, to our U.S. and foreign pension plans during 2007. At March 31, 2007, $1.1 million and $3.1 million of contributions have been made to the U.S. and foreign pension plans, respectively.

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