Pitney Bowes Inc. - Form 10-Q Six Months Ended June 30, 1997 Page 17 of 19 Exhibit (i) Pitney Bowes Inc. Computation of Earnings per Share --------------------------------- Three Months Ended June 30, Six Months Ended June 30, ------------------------------- ------------------------------- (Dollars in thousands, except per share data) 1997 1996 1997 1996 ------------ ------------ ------------ ------------ Primary - ------- Net income applicable to common stock (1) .............. $ 131,071 $ 118,533 $ 251,015 $ 225,042 ============ ============ ============ ============ Weighted average number of common shares outstanding ... 145,195,125 149,444,335 146,326,746 149,655,627 Preference stock, $2.12 cumulative convertible ......... 682,324 731,416 688,408 738,887 Stock option and purchase plans ........................ 1,057,637 769,363 1,015,534 777,022 ------------ ------------ ------------ ------------ Total common and common equivalent shares outstanding .. 146,935,086 150,945,114 148,030,688 151,171,536 ============ ============ ============ ============ Income per common and common equivalent share - primary: Net income ........................................ $ .89 $ .79 $ 1.70 $ 1.49 ============ ============ ============ ============ Fully Diluted - ------------- Net income ............................................. $ 131,071 $ 118,533 $ 251,016 $ 225,042 ============ ============ ============ ============ Weighted average number of common shares outstanding ... 145,195,125 149,444,335 146,326,746 149,655,627 Preference stock, $2.12 cumulative convertible ......... 682,324 731,416 688,408 738,887 Stock option and purchase plans ........................ 1,122,023 803,981 1,071,351 846,838 Preferred stock, 4% cumulative convertible ............. 11,187 11,490 11,187 11,490 ------------ ------------ ------------ ------------ Total common and common equivalent shares outstanding .. 147,010,659 150,991,222 148,097,692 151,252,842 ============ ============ ============ ============ Income per common and common equivalent share- fully diluted: Net income ........................................ $ .89 $ .79 $ 1.69 $ 1.49 ============ ============ ============ ============ <FN> (1) Net income applicable to common stock was adjusted for preferred dividends. </FN>