Exhibit 99.1
                                                                    ------------

                                     Press -        Sheryl Y. Battles
                                                    VP, Corporate Communications
                                                    (203) 351-6808

                                     Financial -    Charles F. McBride
                                                    VP, Investor Relations
                                                    (203) 351-6349

              PITNEY BOWES AGREES TO SELL CAPITAL SERVICES BUSINESS
     "COMPANY SIGNS DEFINITIVE AGREEMENT WITH AFFILIATE OF CERBERUS CAPITAL
MANAGEMENT AND REACHES TENTATIVE SETTLEMENT WITH IRS ON OUTSTANDING TAX ISSUES"

    Stamford, Conn., May 17, 2006 - Pitney Bowes Inc. (NYSE: PBI) today signed a
definitive agreement with an affiliate of Cerberus Capital Management, L.P. for
the sale of its Capital Services external financing business. The transaction is
expected to close within 90 days subject to customary conditions.

    Separately, the company also reached tentative settlement with the Internal
Revenue Service on all outstanding tax audit issues currently in dispute, most
of which are related to the Capital Services external financing business. The
company expects to reach a final settlement with the IRS within 45 days.

    The company expects to generate $1.16 billion of cash from the following
actions:

    o   The sale of the Capital Services external financing business for net
        proceeds of approximately $745 million after transaction expenses.

    o   The recently completed sale of the Oce Imagistics lease portfolio for
        net proceeds of approximately $280 million after transaction expenses.

    o   The draw down of $138 million of Corporate Owned Life Insurance (COLI)
        funds.

    In addition, the purchaser will assume about $500 million of the company's
non-recourse debt and other liabilities in connection with the Capital Services
transaction.

    The company expects to settle all outstanding tax obligations including
those related to the above transactions for approximately $1.14 billion net of
existing tax bonds.

    The company will account for the Capital Services business in discontinued
operations beginning in the second quarter of 2006. As a result of the sale of
Capital Services and the




settlement of outstanding tax issues, the company estimates that it will incur
an after-tax charge in discontinued operations of about $480 million, and a
charge of about a $20 million in continuing operations.

    These actions will facilitate greater focus on the company's growth
strategies, according to Michael J. Critelli, Chairman and CEO of Pitney Bowes.
"We are pleased that we have been able to execute our disposition strategy for
the Capital Services business and settle our outstanding tax issues. The
resolution of both of these matters will make it easier for investors to analyze
and understand our current financial position and future growth potential. These
actions are a major step forward toward our goal of maximizing long-term growth
and value for our shareholders."

    JPMorgan served as financial advisor to the company in connection with the
sale of the Capital Services business. White & Case LLP served as external
counsel.

    Pitney Bowes engineers the flow of communication. The company is a $5.5
billion global leader of mailstream solutions headquartered in Stamford,
Connecticut. For more information about the company, its products, services and
solutions, visit www.pitneybowes.com.

THIS DOCUMENT CONTAINS "FORWARD-LOOKING STATEMENTS" ABOUT OUR EXPECTED FUTURE
BUSINESS AND FINANCIAL PERFORMANCE. WORDS SUCH AS "ESTIMATE," "PROJECT," "PLAN,"
"BELIEVE," EXPECT," "ANTICIPATE," "INTEND," AND SIMILAR EXPRESSIONS MAY IDENTIFY
FORWARD-LOOKING STATEMENTS. SUCH FORWARD-LOOKING STATEMENTS ARE INHERENTLY
UNCERTAIN AND INVOLVE RISKS. CONSEQUENTLY, ACTUAL RESULTS MAY DIFFER MATERIALLY
FROM THOSE INDICATED BY THE FORWARD-LOOKING STATEMENTS. A VARIETY OF RISKS AND
UNCERTAINTIES COULD CAUSE PITNEY BOWES ACTUAL RESULTS TO DIFFER MATERIALLY FROM
THE ANTICIPATED RESULTS OR OTHER EXPECTATIONS EXPRESSED IN THE PITNEY BOWES
FORWARD LOOKING STATEMENTS. THE RISKS AND UNCERTAINTIES INCLUDE, WITHOUT
LIMITATION, THE FOLLOWING: (A) UNDERLYING ASSUMPTIONS OR EXPECTATIONS RELATED TO
THE CONTEMPLATED SALE OF THE CAPITAL SERVICES BUSINESS PROVING TO BE INACCURATE
OR UNREALIZED; (B) THE CLOSING OF THE SALE OF THE CAPITAL SERVICES BUSINESS AND
THE TIMING OF THE CLOSING; (C) THE ABILITY TO CONCLUDE A FINAL SETTLEMENT
AGREEMENT WITH THE INTERNAL REVENUE SERVICE ON THE OUTSTANDING TAX ISSUES; AND
(D) THE UNCERTAINTY OF GENERAL BUSINESS AND ECONOMIC CONDITIONS. ADDITIONAL
FACTORS RELATED TO THESE AND OTHER EXPECTATIONS ARE MORE FULLY OUTLINED IN
PITNEY BOWES 2005 FORM 10-K ANNUAL REPORT FILED WITH THE SECURITIES AND EXCHANGE
COMMISSION. IN ADDITION, THE FORWARD-LOOKING STATEMENTS ARE SUBJECT TO CHANGE
BASED ON THE TIMING AND SPECIFIC TERMS OF THE CONTEMPLATED SALE TRANSACTION.
PITNEY BOWES UNDERTAKES NO OBLIGATION TO PUBLICLY UPDATE ANY FORWARD-LOOKING
STATEMENT, WHETHER AS A RESULT OF NEW INFORMATION, FUTURE EVENTS OR OTHERWISE.
INVESTORS ARE ADVISED HOWEVER, TO CONSULT ANY FURTHER DISCLOSURES MADE ON
RELATED SUBJECTS IN THE COMPANY'S REPORTS FILED WITH THE SEC.