Pitney Bowes (PBI)

Executive Compensation Tables and Related Narrative

The following “Summary Compensation Table” shows all compensation earned or paid during or with respect to 2007 and 2006 to the chief executive officer, the executive chairman, who is the former chief executive officer, the chief financial officer and the three other highest paid executive officers (collectively, the “named executive officers”) for services rendered to the company and its subsidiaries. In addition, the following table shows all compensation earned or paid to Kevin S. Weiss, executive vice president and president, Mailstream, the Americas, who was an executive officer for a period during 2007. Any reference to “named officers” throughout the proxy refers to the named executive officers and Mr. Weiss. The “Summary Compensation Table” includes amounts earned and deferred during the periods covered under the Deferred Incentive Savings Plan.

The “Grants of Plan-Based Awards in 2007” table on page 34 provides additional information regarding grants made during 2007 to the named officers.

On February 13, 2008, the company announced that Michael Monahan has been named the executive vice president and chief financial officer of the company effective March 1, 2008. Mr. Monahan succeeds Bruce P. Nolop who will pursue a senior executive position outside the company.

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