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Pitney Bowes to Record $100 Million Charge for Its Investment Aircraft Leasing

Press release from the issuing company

STAMFORD, Conn., Dec. 23 -- Pitney Bowes Inc. today announced that it will take a fourth quarter pre-tax non-cash charge of approximately $100 million, or 26 cents per diluted share, to write down its investments in commercial aircraft leases with US AirwaysGroup, Inc. (US Airways) and United Air Lines (United). This charge is precipitated by the estimated cumulative loss of future payments over the next ten years and reflects the expected final outcome of the current negotiations with both US Airways and United. However, the actual outcome will not be determined until negotiations with both airlines are completed and any necessary bankruptcy court approvals are obtained. This charge is consistent with the range disclosed in the company's second and third quarter 2002 quarterly reports on Form 10-Q. The charge reflects recent events concerning US Airways and United including the progress of negotiations with both airlines and the decision of United to file for bankruptcy, which exacerbated an already difficult environment in the airline industry. Additional details related to this charge will be provided in the company's fourth quarter 2002 quarterly earnings release scheduled for January 28, 2003. The company estimates that the loss of income associated with its investments in commercial aircraft leases with US Airways and United will be approximately two cents per diluted share in 2003. Pitney Bowes is a $4 billion global provider of integrated mail and document management solutions headquartered in Stamford, Connecticut. The company serves over 2 million businesses of all sizes through direct and dealer operations in more than 130 countries. For additional information on the company, its products and solutions, visit www.pb.com.