Pitney Bowes Inc. - Form 10-Q Exhibit (ii) Three Months Ended March 31, 1995 Page 16 of 17 Pitney Bowes Inc. Computation of Ratio of Earnings to Fixed Charges (1) (Dollars in thousands) Three Months Ended March 31, 1995 1994(2) Income from continuing operations before income taxes $149,986 $130,164 Add: Interest expense 60,111 44,130 Portion of rents representative of the interest factor 10,781 10,995 Amortization of capitalized interest 228 232 Income as adjusted $221,106 $185,521 Fixed charges: Interest expense $ 60,111 $ 44,130 Capitalized interest 494 62 Portion of rents representative of the interest factor 10,781 10,995 $ 71,386 $ 55,187 Ratio of earnings to fixed charges 3.10 3.36 <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)Reclassified to reflect discontinued operations.