Pitney Bowes Inc. - Form 10-Q Three Months Ended March 31, 1997 Exhibit (ii) Pitney Bowes Inc. Computation of Earnings per Share Three Months Ended March 31, (Dollars in thousands, except per share data) 1997 1996 Primary Net income applicable to common stock(1) $ 119,945 $ 106,509 Weighted average number of common shares 147,315,165 149,876,325 Preference stock, $2.12 cumulative convertible 694,392 746,408 Stock option and purchase plans 965,960 793,348 Total common and common shares equivalent outstanding 148,975,517 151,416,081 Income per common and common equivalent share - primary: Net income $ .81 $ .70 Fully Diluted Net income applicable to common stock $ 119,945 $ 106,509 Weighted average number of common shares outstanding 147,315,165 149,876,325 Preference stock, $2.12 cumulative convertible 694,392 746,408 convertible Stock option and purchase plans 999,253 799,305 Preferred stock, 4% cumulative convertible 11,187 11,490 Total common and common shares equivalent outstanding 149,019,997 151,433,528 Income per common and common share equivalent - fully diluted: Net income $ .80 $ .70 [FN] (1) Net income applicable to common stock was adjusted for preferred dividends.