The settlement includes a five-year patent cross-licensing agreement. Stamps.com's patent licenses are limited to use in "non-traditional" metering applications, such as Internet postage; while Pitney Bowes' patent licenses may be used across the entire range of metering applications. There will be no material financial payment between the companies.

"We are very pleased with the settlement in this matter," said Murray Martin, Executive Vice President and Group President, Pitney Bowes Global Mailstream Solutions. "Pitney Bowes has a long history of innovation in the mailing industry, from invention of the original meter to innovations in Internet postage and networked metering solutions. We have a fiduciary responsibility to our shareholders to ensure appropriate returns from our significant investment in new technologies. This agreement enables us to focus on continuing to develop new ways to add value, efficiency and effectiveness to the total mailstream process."

"We are very pleased with the outcome in this matter," said Ken McBride, CEO of Stamps.com. "Stamps.com is proud of its history of online postage innovation, including the first U.S. Postal Service-approved online postage solution, and our unique NetStamps™ product. This agreement represents a good return to our shareholders on our large investment in technology and our broad intellectual property portfolio."

About Pitney Bowes Inc.
Pitney Bowes engineers the flow of communication. The company is a $4.4 billion global leader of integrated mail and document management solutions headquartered in Stamford, Connecticut. Pitney Bowes' 80-plus years of technological leadership has produced many major innovations in the mailing industry and more than 3,500 patents. The company has a long history of licensing its technology, and currently has agreements with companies in a variety of industries, including shipping, printing, word processing and mailing. With approximately 33,000 employees worldwide, Pitney Bowes serves more than 2 million businesses through direct and dealer operations. For more information about the company, its products, services and solutions, visit www.pitneybowes.com.

Pitney Bowes Inc. Statement:
The statements contained in this news release that are not purely historical are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements may be identified by their use of forward-looking terminology such as the words "expects," "projects," "anticipates," "intends" and other similar words. Such forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those projected. These risks and uncertainties include, but are not limited to: severe adverse changes in the economic environment; changes in international or national political or economic conditions; timely development and acceptance of new products or gaining product approval; successful entry into new markets; changes in interest rates; and changes in postal regulations, as more fully outlined in the company's 2002 Form 10-K Annual Report filed with the Securities and Exchange Commission. The forward-looking statements contained in this news release are made as of the date hereof and we do not assume any obligation to update the reasons why actual results could differ materially from those projected in the forward-looking statements.

Pitney Bowes Contact:
Sheryl Battles
Vice President, External Affairs
(203) 351-6808
sheryl.battles@pb.com


Charles McBride
Vice President, Investor Relations
(203) 351-6349
charles.mcbride@pb.com


Stamps.com Contact
Seth Weisberg
General Counsel
(310) 581-7252
sweisberg@stamps.com


Austin Rettig
Investor Relations
(310) 581-7552
srettig@stamps.com