<ARTICLE> 5 <LEGEND> THIS SCHEDULE CONTAINS FINANCIAL INFORMATION EXTRACTED FROM PITNEY BOWES INC. CONSOLIDATED BALANCE SHEET, CONSOLIDATED STATEMENT OF INCOME AND CORRESPONDING FOOTNOTE #3 FIXED ASSETS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. </LEGEND> <MULTIPLIER> 1,000 <PERIOD-TYPE> 12-MOS <FISCAL-YEAR-END> DEC-31-1998 <PERIOD-END> DEC-31-1998 <CASH> 125,684 <SECURITIES> 3,302 <RECEIVABLES> <F1> 1,859,089 <ALLOWANCES> <F1> 75,897 <INVENTORY> 266,734 <CURRENT-ASSETS> 2,508,963 <PP&E> <F2> 2,860,568 <DEPRECIATION> <F2> 1,576,507 <TOTAL-ASSETS> 7,661,039 <CURRENT-LIABILITIES> 2,721,812 <BONDS> 1,712,937 <COMMON> 323,338 <PREFERRED-MANDATORY> 310,097 <PREFERRED> 2,065 <OTHER-SE> 1,322,599 <TOTAL-LIABILITY-AND-EQUITY> 7,661,039 <SALES> 1,993,546 <TOTAL-REVENUES> 4,090,915 <CGS> 1,146,404 <TOTAL-COSTS> 1,565,527 <OTHER-EXPENSES> 100,806 <LOSS-PROVISION> 0 <INTEREST-EXPENSE> 162,092 <INCOME-PRETAX> 824,604 <INCOME-TAX> 282,092 <INCOME-CONTINUING> 542,512 <DISCONTINUED> 33,882 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> 576,394 <EPS-BASIC> 2.10 <EPS-DILUTED> 2.06 <FN> <F1> Receivables are comprised of trade receivables of $407,071 and short-term finance receivables of $1,452,018. Allowances are comprised of allowance for trade receivables of $24,665 and for short-term finance receivables of $51,232. <F2> Property, plant and equipment are comprised of fixed assets of $1,153,573 and rental equipment and related inventories of $1,706,995. Depreciation is comprised of depreciation on fixed assets of $676,097 and on rental equipment and related inventories of $900,410. </FN>