Pitney Bowes Inc. - Form 10-Q Six Months Ended June 30, 1995 Page 18 of 19 Exhibit (ii) 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, 1995 1994(2) 1995 1994(2) Income from continuing operations before income taxes $153,615 $137,399 $303,601 $267,563 Add: Interest expense 61,593 47,140 121,704 91,270 Portion of rents representative of the interest factor 10,446 10,393 21,227 21,388 Amortization of capitalized interest 229 225 457 457 Income as adjusted $225,883 $195,157 $446,989 $380,678 Fixed charges: Interest expense $ 61,593 $ 47,140 $121,704 $ 91,270 Capitalized interest 468 110 962 172 Portion of rents representative of the interest factor 10,446 10,393 21,227 21,388 $ 72,507 $ 57,643 $143,893 $112,830 Ratio of earnings to fixed charges 3.12 3.39 3.11 3.37 <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.