Pitney Bowes Inc. - Form 10-Q Three Months Ended March 31, 1997 Exhibit (iii) Pitney Bowes Inc. Computation of Ratio of Earnings to Fixed Charges (1) (Dollars in thousands) Three Months Ended March 31, 1997 1996 Income from continuing operations before income taxes $ 183,635 $ 163,439 Add: Interest expense 51,905 49,912 Portion of rents representative of the interest factor 11,129 11,061 Amortization of capitalized interest 243 228 Minority interest in the income of subsidiary with fixed charges 1,966 2,119 Income as adjusted $ 248,878 $ 226,759 Fixed charges: Interest expense $ 51,905 $ 49,912 Capitalized interest - 602 Portion of rents representative of the interest factor 11,129 11,061 Minority interest in the income of subsidiary with fixed charges 1,966 2,119 $ 65,000 $ 63,694 Ratio of earnings to fixed charges 3.83 3.56 Ratio of earings to fixed charges excluding minority interest 3.92 3.65 <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.