Exhibit (12) ------------ Pitney Bowes Inc. Computation of Ratio of Earnings to Fixed Charges (1) ----------------------------------------------------- (Dollars in thousands) Three Months Ended Six Months Ended June 30, June 30, ------------------------------ ---------------------------- 2005 2004 2005 2004 ------------- ------------- ------------ ------------ Income before income taxes................................... $ 209,852 $ 197,948 $ 437,621 $ 383,969 Add: Interest expense........................................... 49,434 42,152 95,801 83,624 Portion of rents representative of the interest factor................................... 13,450 12,128 27,380 25,343 Amortization of capitalized interest................................................. 367 367 736 736 Minority interest in the income of subsidiary with fixed charges............................ 2,294 923 4,052 1,833 ------------- ------------- ------------ ------------ Income as adjusted........................................... $ 275,397 $ 253,518 $ 565,590 $ 495,505 ============= ============= ============ ============ Fixed charges: Interest expense........................................... $ 49,434 $ 42,152 $ 95,801 $ 83,624 Portion of rents representative of the interest factor................................... 13,450 12,128 27,380 25,343 Minority interest, excluding taxes, in the income of subsidiary with fixed charges.................. 3,466 1,356 6,143 2,693 ------------- ------------- ------------ ------------ Total fixed charges.......................................... $ 66,350 $ 55,636 $ 129,324 $ 111,660 ============= ============= ============ ============ Ratio of earnings to fixed charges........................... 4.15 4.56 4.37 4.44 ============= ============= ============ ============ <FN> (1) The computation of the ratio of earnings to fixed charges has been computed by dividing income before income taxes as adjusted by fixed charges. Included in fixed charges is one-third of rental expense as the representative portion of interest. </FN>