Pitney Bowes (PBI) 10-K 2004 FY Annual report

EXHIBIT (i)

PITNEY BOWES INC.

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES (1)

(Dollars in thousands)

	Years ended December 31
		2004		2003		2002		2001 (2)		2000 (2)
Income from continuing operations before income taxes	$	699,448	$	721,091	$	619,445	$	766,384	$	802,848
Add:
Interest expense		172,403		167,649		185,352		193,076		200,957
Portion of rents representative of the interest factor		51,445		45,978		43,032		36,032		34,512
Amortization of capitalized interest		1,473		1,473		1,348		973		973
Minority interest in the income of subsidiary with fixed charges		4,791		3,924		5,415		9,995		14,237
Income as adjusted	$	929,560	$	940,115	$	854,592	$	1,006,460	$	1,053,527
Fixed charges:
Interest expense	$	172,403	$	167,649	$	185,352	$	193,076	$	200,957
Capitalized interest		-		-		-		-		2,383
Portions of rents representative of the interest factor		51,445		45,978		43,032		36,032		34,512
Minority interest, excluding taxes, in the income of subsidiary with fixed charges		6,974		5,718		7,663		14,893		20,298
Total fixed charges	$	230,822	$	219,345	$	236,047	$	244,001	$	258,150
Ratio of earnings to fixed charges		4.03		4.29		3.62		4.12		4.08

(1)	The computation of the ratio of earnings to fixed charges has been computed by dividing income from continuing operations before income taxes as adjusted by fixed charges. Included in fixed charges is one-third of rental expense as the representative portion of interest.
(2)	Amounts reclassified to reflect IGI, CPLC and AMIC as discontinued operations. Interest expense and the portion of rents representative of the interest factor of these discontinued operations have been excluded from fixed charges in the computation.
	Including these amounts in fixed charges, the ratio of earnings to fixed charges would be 3.98 and 3.95 for the years ended December 31, 2001 and 2000, respectively.

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