Pitney Bowes Inc. - Form 10-Q Nine Months Ended September 30, 1996 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, 1996 1995 1996 1995 Income from continuing operations before income taxes $176,450 $150,790 $522,085 $454,391 Add: Interest expense 52,212 54,059 151,095 175,763 Portion of rents representative of the interest factor 11,469 9,952 33,780 31,179 Amortization of capitalized interest 228 228 685 685 Minority interest in the income of subsidiary with fixed charges 2,011 2,823 6,121 2,823 Income as adjusted $242,370 $217,852 $713,766 $664,841 Fixed charges: Interest expense 52,212 54,059 151,095 175,763 Capitalized interest - 608 1,201 1,570 Portion of rents representative of the interest factor 11,469 9,952 33,780 31,179 Minority interest in the income of subsidiary with fixed charges 2,011 2,823 6,121 2,823 $ 65,692 $ 67,442 $192,197 $211,335 Ratio of earnings to fixed charges 3.69 3.23 3.71 3.15 Ratio of earnings to fixed charges excluding minority interest 3.77 3.33 3.80 3.17 <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.