Pitney Bowes Inc. - Form 10-Q Nine Months Ended September 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 Nine Months Ended September 30, September 30, 1995 1994 1995 1994 Income from continuing operations before income taxes $150,790 $154,819 $454,391 $422,382 Add: Interest expense 54,059 50,031 175,763 141,301 Portion of rents representative of the interest factor 9,952 11,157 31,179 32,545 Amortization of capitalized interest 228 228 685 685 Income as adjusted $215,029 $216,235 $662,018 $596,913 Fixed charges: Interest expense 54,059 50,031 175,763 141,301 Capitalized interest 608 200 1,570 372 Portion of rents representative of the interest factor 9,952 11,157 31,179 32,545 $ 64,619 $ 61,388 $208,512 $174,218 Ratio of earnings to fixed charges 3.33 3.52 3.17 3.43 <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.