Exhibit (12) Pitney Bowes Inc. Computation of Ratio of Earnings to Fixed Charges (1) ----------------------------------------------------- (Dollars in thousands) Three Months Ended March 31, ---------------------------- 1999 1998 (2) --------- --------- Income from continuing operations before income taxes... $215,080 $193,539 Add: Interest expense...................................... 48,151 37,370 Portion of rents representative of the interest factor..................................... 10,935 10,207 Amortization of capitalized interest............................................ 243 243 Minority interest in the income of subsidiary with fixed charges....................................... 2,873 3,059 ----- ----- Income as adjusted...................................... $ 277,282 $244,418 ========= ======== Fixed charges: Interest expense...................................... $ 48,151 $ 37,370 Portion of rents representative of the interest factor..................................... 10,935 10,207 Minority interest, excluding taxes, in the income of subsidiary with fixed charges............................................. 4,343 4,664 ----- ----- Total fixed charges..................................... $ 63,429 $ 52,241 ======== ======== Ratio of earnings to fixed charges............................................... 4.37 4.68 ==== ==== Ratio of earnings to fixed charges excluding minority interest........................................... 4.64 5.07 ==== ==== <FN> (1) The computation of the ratio of earnings to fixed charges has been computed by dividing income from continuing operations before income taxes as adjusted by fixed charges. Included in fixed charges is one-third of rental expense as the representative portion of interest. (2) Amounts recomputed to reflect CPLC in discontinued operations. </FN>