Pitney Bowes Inc. - Form 10-Q Nine Months Ended September 30, 1994 Page 18 of 19 Exhibit (ii) Pitney Bowes Inc. Computation of Ratio of Earnings to Fixed Charges (1) (Dollars in thousands) Three Months Ended Nine Months Ended September 30, September 30, 1994 1993(2) 1994 1993(2) Income from continuing operations before income taxes $154,819 $124,504 $422,382 $355,244 Add: Interest expense 50,031 45,402 141,301 143,558 Portion of rents representative of the interest factor 11,157 8,486 32,545 25,277 Amortization of capitalized interest 228 228 685 685 Income as adjusted $216,235 $178,620 $596,913 $524,764 Fixed charges: Interest expense 50,031 45,402 141,301 143,558 Capitalized interest 200 - 372 - Portion of rents representative of the interest factor 11,157 8,486 32,545 25,277 $ 61,388 $ 53,888 $174,218 $168,835 Ratio of earnings to fixed charges 3.52 3.31 3.43 3.11 <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. <FN> (2) Restated to reflect discontinued operations.