Pitney Bowes Inc. - Form 10-Q Exhibit (ii) Three Months Ended March 31, 1996 Page 16 of 16 Pitney Bowes Inc. Computation of Ratio of Earnings to Fixed Charges (1) (Dollars in thousands) Three Months Ended March 31, 1996 1995 Income from continuing operations before income taxes $163,439 $149,986 Add: Interest expense 49,912 60,111 Portion of rents representative of the interest factor 11,061 10,781 Amortization of capitalized interest 228 228 Minority interest in the income of subsidiary with fixed charges 2,119 - Income as adjusted $226,759 $221,106 Fixed charges: Interest expense $ 49,912 $ 60,111 Capitalized interest 602 494 Portion of rents representative of the interest factor 11,061 10,781 Minority interest in the income of subsidiary with fixed charges 2,119 - $ 63,694 $ 71,386 Ratio of earnings to fixed charges 3.56 3.10 <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.