Pitney Bowes (PBI)

ITEM 2.06      MATERIAL IMPAIRMENTS

The following information is furnished pursuant to Item 2.06 “Material Impairments”.

On November 20, 2007, the Company filed a Form 8-K related to its November 15, 2007 announcement of a global program to transition its product line. In connection with this transition, the Company indicated that it would record non-cash impairment charges, primarily associated with the write-off of inventory and lease residuals of older equipment that the Company will stop selling as it transitions to the new generation of fully digital, networked, and remotely downloadable equipment.

Results of operations for the fourth quarter of 2007 will include a non-cash pre-tax impairment charge of approximately $170 million.

ITEM 2.06 MATERIAL IMPAIRMENTS

The following information is furnished pursuant to Item 2.06 “Material Impairments”.

On November 15, 2007, the Company announced it is initiating a global program to transition some of its product lines. In connection with this transition, the Company expects to record non-cash impairment charges, primarily associated with the write-off of inventory and lease residuals of older mailing equipment that the Company will stop selling as it transitions to the new generation of fully digital, networked, and remotely downloadable equipment. When the Company determines the range of these impairment charges, the appropriate disclosure will be made to provide this information.