Pitney Bowes (PBI)

Mailstream Services:

12

     For the quarter, Mailstream Services reported revenue growth of six percent to $412 million and EBIT growth of three percent to $35 million, versus the prior year.

      Within Mailstream Services:

     Management Services revenue increased two percent to $273 million for the quarter while EBIT increased one percent to $21 million. Revenue comparisons for the quarter were helped by favorable currency translation, but adversely affected by large non-recurring print contracts in the prior year.

     Mail Services revenue grew 11 percent to $104 million and EBIT grew 20 percent to $14 million. Revenue growth was driven by both presort and international mail services, while EBIT benefited from the ongoing successful integration of new sites and increased operating efficiencies.

     Marketing Services revenue increased 32 percent to $35 million, while EBIT declined 75 percent to $1 million. The segment’s results benefited from recent acquisitions and the continued expansion of marketing services programs, but were adversely affected by lower revenue in the company’s motor vehicle registration services.

Mailstream Services:

Management Services: Includes our worldwide facilities management services; secure mail services; reprographic, document management services; and litigation support and eDiscovery services.

Mail Services: Includes our presort mail services and our outbound international mail processing services.

Marketing Services: Includes our direct marketing services for targeted customers; our web-tools for the customization of promotional mail and marketing collateral; and other marketing consulting services.

3

     For the quarter, Mailstream Services reported revenue growth of seven percent to $412 million and EBIT growth of 38 percent to $43 million, versus the prior year.

     Within Mailstream Services:

     Management Services revenue increased three percent to $276 million for the quarter while EBIT increased seven percent to $22 million, consistent with the company’s strategy to focus on higher value service offerings while reducing administrative costs.

     Mail Services revenue grew eight percent to $94 million and EBIT grew 79 percent to $13 million. Revenue growth was driven by both presort and international mail services, while EBIT benefited from the ongoing successful integration of acquired sites and increased operating efficiencies.

     Marketing Services revenue increased 41 percent to $43 million and EBIT grew 127 percent to $8 million driven by continued expansion of our marketing services programs.

4