PITNEY BOWES INC. EXHIBIT (ii) COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES (1) (Dollars in thousands) Years Ended December 31, 1993 1992 1991 1990 1989 Income from continuing operations before income taxes. . . . . . . . $574,807 $495,352 $461,589 $327,644 $261,057 Add: Interest expense. . . . . . 187,439 227,257 258,116 264,473 238,375 Portion of rents representative of the interest factor . . . 38,712 38,338 36,757 33,672 24,427 Amortization of capitalized interest. . . 927 927 927 862 839 Income as adjusted . . . . . $801,885 $761,874 $757,389 $626,651 $524,698 Fixed charges: Interest expense. . . . . . $187,439 $227,257 $258,116 $264,473 $238,375 Capitalized interest. . . . - - - 1,567 1,056 Portion of rents representative of the interest factor . . . 38,712 38,338 36,757 33,672 24,427 $226,151 $265,595 $294,873 $299,712 $263,858 Ratio of earnings to fixed charges. . . . . . . . 3.55 2.87 2.57 2.09 1.99 <FN> (1) The computation of the ratio of earnings to fixed charges has been computed by dividing income from continuing operations before income taxes and fixed charges by fixed charges. Included in fixed charges is one-third of rental expense as the representative portion of interest.