STAMFORD, Conn.---The Pitney Bowes Inc. (NYSE: PBI) Board of Directors today unanimously approved a plan to spin off the company's Office Systems business to stockholders as an independent, publicly-traded company. The new business consists of U.S. and U.K. Office Systems operations. The transaction is expected to be completed by the end of the third quarter 2001. For financial reporting purposes, Office Systems will be treated as a discontinued operation. Under the proposal, it is anticipated that Pitney Bowes stockholders will receive 100 percent of the stock of the new company. The stock distribution ratio, record and distribution dates will be determined just prior to the spin date. Michael J. Critelli, Chairman and CEO of Pitney Bowes Inc. said, "The successful completion of this transaction will maximize the value of both Pitney Bowes and Office Systems to our stockholders and customers." He continued, "As separate entities, we can leverage the core strengths of each respective company and sharpen the focus on the growth opportunities in our designated markets, while maximizing speed and enhancing responsiveness to changing customer and competitive conditions. Both organizations will also have greater flexibility to invest and structure themselves in alignment with market needs, while continuing during the transition to provide all customers with the quality products and services that they've come to expect from Pitney Bowes." It is intended that Office Systems will be licensed to operate under the "Pitney Bowes" brand name for a period of time as Pitney Bowes Office Systems and will continue to be headquartered in Trumbull, Connecticut. Pitney Bowes Office Systems will feature a separate management team led by Marc C. Breslawsky as the Chief Executive Officer. Currently serving as the President and Chief Operating Officer of Pitney Bowes Inc., Mr. Breslawsky has over 30 years experience in the Office Systems market and, in fact, started the facsimile business for Pitney Bowes in 1982. Mr. Breslawsky and Mr. Critelli will continue to work together during this transition, with more of Mr. Breslawsky's focus being directed toward the spin-off as the transaction nears completion.