Market Capitalization $2.0 Billion

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1 BUY HOLD SELL A+ A A- B+ B B- C+ C C- D+ D D- E+ E E- F Annual Dividend Rate HOLD HOLD RATING SINCE 11/02/2016 BUSINESS DESCRIPTION Pitney Bowes Inc. offers customer information management, location intelligence, and customer engagement technology products and solutions in the United States and internationally. Sector: Industrials Sub-Industry: Office Services & Supplies Source: S&P Weekly Price: (US$) SMA (50) SMA (100) 1 Year 2 Years STOCK PERFORMANCE (%) 3 Mo. 1 Yr. 3 Yr (Ann) Price Change GROWTH (%) Last Qtr 12 Mo. 3 Yr CAGR Revenues Net Income EPS RETURN ON EQUITY (%) Ind Avg S&P 500 Q Q Q P/E COMPARISON Rating History BUY Volume in Millions HOLD COMPUSTAT for Price and Volume, TheStreet Ratings, Inc. for Rating History EPS ANALYSIS¹ ($) Ind Avg S&P 500 RECOMMENDATION We rate () a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing nesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations and expanding profit margins. However, as a counter to these strengths, we also find nesses including deteriorating net income, generally higher debt management risk and a generally disappointing performance in the stock itself. HIGHLIGHTS Despite its growing revenue, the company underperformed as compared with the industry average of 8.7%. Since the same quarter one year prior, revenues slightly increased by 0.5%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share. Q Q Q Q Q Q Q Q Q Q Q Net operating cash flow has slightly increased to $ million or 6.25% when compared to the same quarter last year. Despite an increase in cash flow, 's average is still marginally south of the industry average growth rate of 14.75%. The gross profit margin for is rather high; currently it is at 57.59%. Regardless of 's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 6.80% trails the industry average NA = not available NM = not meaningful Compustat fiscal year convention is used for all fundamental data items. Looking at the price performance of 's shares over the past 12 months, there is not much good news to report: the stock is down 30.20%, and it has underformed the S&P 500 Index. In addition, the company's earnings per share are lower today than the year-earlier quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now. The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Commercial Services & Supplies industry. The net income has decreased by 12.4% when compared to the same quarter one year ago, dropping from $65.51 million to $57.36 million. PAGE 1

2 PEER GROUP ANALYSIS REVENUE GROWTH AND EBITDA MARGIN* Revenue Growth (TTM) -10% 20% NL UNFAVORABLE 5% ATTO SCS KBAL MLHR HNI EBITDA Margin (TTM) KNL ACCO FAVORABLE TILE MSA 20% Companies with higher EBITDA margins and revenue growth rates are outperforming companies with lower EBITDA margins and revenue growth rates. Companies for this scatter plot have a market capitalization between $608.9 Million and $2.9 Billion. Companies with NA or NM values do not appear. *EBITDA Earnings Before Interest, Taxes, Depreciation and Amortization. REVENUE GROWTH AND EARNINGS YIELD Revenue Growth (TTM) -10% 20% ATTO KBAL SCS TILE MLHR HNI MSA UNFAVORABLE 2% ACCO Earnings Yield (TTM) KNL FAVORABLE NL 14% Companies that exhibit both a high earnings yield and high revenue growth are generally more attractive than companies with low revenue growth and low earnings yield. Companies for this scatter plot have revenue growth rates between -5.7% and 18.8%. Companies with NA or NM values do not appear. INDUSTRY ANALYSIS Commercial services and supplies is a broad industry with numerous sub-industries. It includes commercial printing, diversified commercial and professional services, office services and supplies, human resources and employment services and environmental and facilities services. The commercial printing industry in the US consists of approximately 35,000 companies generating $90 billion in annual revenue. Revenue growth is driven by ongoing technological changes that make it easier to create high quality and customized prints. Growth is also aided by ongoing adjustments in print production in response to changing consumer preferences. Lithographic printing accounts for the largest share of commercial printing revenue. The dominance of this process is largely due to its wider use and lower cost. Advertising is the largest application for commercial printing. Print advertising continues to grow despite competition from non-print advertising venues such as the internet. Human resources and employment services has been one of the fastest growing industries in the US. After many years of rapid growth followed by a deep recession, the industry see slowly dropping unemployment rates and improving economic conditions. The US staffing industry will grow over the next decade according to the Bureau of Labor Statistics (BLS). The US environmental and facilities services industry is highly competitive in most service segments, but trails in some equipment segments. The industry is comprised of more than 110,000 revenue-generating organizations, representing a combination of public and private sector participants. The majority of these organizations are in the public sector, providing potable water and waste-water treatment services to limited geographic areas. In recent years, the industry has witnessed slow revenue growth. A high degree of compliance with existing environmental regulations, fewer new regulations, and the perception of softened enforcement have reduced demand for many of the industry s products and services. Many companies are responding to these changes by focusing on internal cost controls, a step that may help short-term profitability. PEER GROUP: Commercial Services & Supplies Recent Market Price/ Net Sales Net Income Ticker Company Name Price ($) Cap ($M) Earnings TTM ($M) TTM ($M) , , ATTO ATENTO SA , KBAL KIMBALL INTERNATIONAL NL NL INDUSTRIES MSA MSA SAFETY INC , , MLHR MILLER (HERMAN) INC , , HNI HNI CORP , , TILE INTERFACE INC , ACCO ACCO BRANDS CORP , , SCS STEELCASE INC , , KNL KNOLL INC , , The peer group comparison is based on Major Office Services & Supplies companies of comparable size. PAGE 2

3 Annual Dividend Rate COMPANY DESCRIPTION Pitney Bowes Inc. offers customer information management, location intelligence, and customer engagement technology products and solutions in the United States and internationally. The company operates in three segments: Small & Medium Business Solutions; Enterprise Business Solutions; and Digital Commerce Solutions. The Small & Medium Business Solutions segment is involved in the sale, rental, financing, and servicing of mailing equipment, software, and supplies. The Enterprise Business Solutions segment offers equipment and services that enable large enterprises to process inbound and outbound mail. This segment provides production mail inserting and sortation equipment, production print systems, and supplies and related support services, as well as mail presort services. The Digital Commerce Solutions segment provides a range of solutions, including customer information management, location intelligence, customer engagement software, shipping management, and cross border ecommerce solutions as traditional software licenses, enterprise platforms, software-as-a-service, and on-demand applications, as well as offers related support services. The company also provides revolving credit and interest-bearing deposit solutions. Pitney Bowes Inc. markets its products through sales force, direct mailings, telemarketing, independent dealers and distributors, and Web channels to various business, governmental, institutional, and other organizations. The company was formerly known as Pitney Bowes Postage Meter Company. Pitney Bowes Inc. was founded in 1920 and is headquartered in Stamford, Connecticut Summer Street Stamford, CT USA Phone: STOCK-AT-A-GLANCE Below is a summary of the major fundamental and technical factors we consider when determining our overall recommendation of shares. It is provided in order to give you a deeper understanding of our rating methodology as well as to paint a more complete picture of a stock's strengths and nesses. It is important to note, however, that these factors only tell part of the story. To gain an even more comprehensive understanding of our stance on the stock, these factors must be assessed in combination with the stock s valuation. Please refer to our Valuation section on page 5 for further information. FACTOR SCORE Growth 2.5 out of 5 stars Measures the growth of both the company's income statement and cash flow. On this factor, has a growth score better than 40% of the stocks we rate. Total Return 0.5 out of 5 stars Measures the historical price movement of the stock. The stock performance of this company ranks at the bottom of the companies we cover. Efficiency 3.0 out of 5 stars Measures the strength and historic growth of a company's return on invested capital. The company has generated more income per dollar of capital than 50% of the companies we review. Price volatility 1.0 out of 5 stars Measures the volatility of the company's stock price historically. The stock is less volatile than 10% of the stocks we monitor. Solvency 2.0 out of 5 stars Measures the solvency of the company based on several ratios. The company is more solvent than 30% of the companies we analyze. Income 5.0 out of 5 stars Measures dividend yield and payouts to shareholders. The company's dividend is higher than 90% of the companies we track. THESTREET RATINGS RESEARCH METHODOLOGY TheStreet Ratings' stock model projects a stock's total return potential over a 12-month period including both price appreciation and dividends. Our Buy, Hold or Sell ratings designate how we expect these stocks to perform against a general benchmark of the equities market and interest rates. While our model is quantitative, it utilizes both subjective and objective elements. For instance, subjective elements include expected equities market returns, future interest rates, implied industry outlook and forecasted company earnings. Objective elements include volatility of past operating revenues, financial strength, and company cash flows. Our model gauges the relationship between risk and reward in several ways, including: the pricing drawdown as compared to potential profit volatility, i.e.how much one is willing to risk in order to earn profits; the level of acceptable volatility for highly performing stocks; the current valuation as compared to projected earnings growth; and the financial strength of the underlying company as compared to its stock's valuation as compared to projected earnings growth; and the financial strength of the underlying company as compared to its stock's performance. These and many more derived observations are then combined, ranked, weighted, and scenario-tested to create a more complete analysis. The result is a systematic and disciplined method of selecting stocks. PAGE 3

4 Consensus EPS Estimates² ($) IBES consensus estimates are provided by Thomson Financial 0.36 Q4 FY E 2017(E) 1.38 E 2018(E) INCOME STATEMENT Net Sales ($mil) EBITDA ($mil) EBIT ($mil) Net Income ($mil) FINANCIAL ANALYSIS 's gross profit margin for the third quarter of its fiscal year 2017 has decreased when compared to the same period a year ago. Even though sales increased, the net income has decreased, representing a decrease to the bottom line. has average liquidity. Currently, the Quick Ratio is 1.31 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow. During the same period, stockholders' equity ("net worth") has decreased by 22.70% from the same quarter last year. Together, the key liquidity measurements indicate that it is relatively unlikely that the company will face financial difficulties in the near future. STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. To learn more visit BALANCE SHEET Cash & Equiv. ($mil) 1, , Total Assets ($mil) 6, , Total Debt ($mil) 4, , Equity ($mil) PROFITABILITY Gross Profit Margin 57.59% 61.11% EBITDA Margin 18.25% 21.81% Operating Margin 13.06% 15.78% Sales Turnover Return on Assets 1.28% 4.20% Return on Equity 87.03% % DEBT Current Ratio Debt/Capital Interest Expense Interest Coverage SHARE DATA Shares outstanding (mil) Div / share EPS Book value / share Institutional Own % NA NA Avg Daily Volume 2,357,027 1,715,675 2 Sum of quarterly figures may not match annual estimates due to use of median consensus estimates. PAGE 4

5 RATINGS HISTORY Our rating for has not changed since 11/2/2016. As of 12/14/2017, the stock was trading at a price of which is 34.8% below its 52-week high of $16.60 and 13.9% above its 52-week low of $ Year Chart BUY: $ HOLD: $14.58 $25 $20 $15 $10 MOST RECENT RATINGS CHANGES Date Price Action From To 11/2/16 $14.58 Downgrade Buy Hold 12/14/15 $19.32 No Change Buy Buy Price reflects the closing price as of the date listed, if available RATINGS DEFINITIONS & DISTRIBUTION OF THESTREET RATINGS (as of 12/14/2017) 44.62% Buy - We believe that this stock has the opportunity to appreciate and produce a total return of more than 10% over the next 12 months % Hold - We do not believe this stock offers conclusive evidence to warrant the purchase or sale of shares at this time and that its likelihood of positive total return is roughly in balance with the risk of loss % Sell - We believe that this stock is likely to decline by more than 10% over the next 12 months, with the risk involved too great to compensate for any possible returns. TheStreet Ratings 14 Wall Street, 15th Floor New York, NY Research Contact: Sales Contact: VALUATION HOLD. The current P/E ratio indicates a significant discount compared to an average of for the Commercial Services & Supplies industry and a discount compared to the S&P 500 average of For additional comparison, its price-to-book ratio of indicates a significant premium versus the S&P 500 average of 3.24 and a significant premium versus the industry average of The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount. The valuation analysis reveals that, seems to be trading at a discount to investment alternatives within the industry. Price/Earnings Peers Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations. Price/Projected Earnings 7.84 Peers Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations. Price/Book Peers 5.55 Premium. A higher price-to-book ratio makes a stock less attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. is trading at a significant premium to its peers. Price/Sales 0.60 Peers 2.76 Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. is trading at a significant discount to its industry on this measurement. DISCLAIMER: Price/CashFlow 3.80 Peers Discount. The P/CF ratio, a stock s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. Price to Earnings/Growth 0.13 Peers 1.85 Discount. The PEG ratio is the stock s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. trades at a significant discount to its peers. Earnings Growth lower higher Peers Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. However, is expected to significantly trail its peers on the basis of its earnings growth rate. Sales Growth lower higher Peers Lower. A sales growth rate that trails the industry implies that a company is losing market share. significantly trails its peers on the basis of sales growth The opinions and information contained herein have been obtained or derived from sources believed to be reliable, but TheStreet Ratings cannot guarantee its accuracy and completeness, and that of the opinions based thereon. Data is provided via the COMPUSTAT Xpressfeed product from Standard &Poor's, a division of The McGraw-Hill Companies, Inc., as well as other third-party data providers. TheStreet Ratings is a division of TheStreet, Inc., which is a publisher. This research report contains opinions and is provided for informational purposes only. You should not rely solely upon the research herein for purposes of transacting securities or other investments, and you are encouraged to conduct your own research and due diligence, and to seek the advice of a qualified securities professional, before you make any investment. None of the information contained in this report constitutes, or is intended to constitute a recommendation by TheStreet Ratings of any particular security or trading strategy or a determination by TheStreet Ratings that any security or trading strategy is suitable for any specific person. To the extent any of the information contained herein may be deemed to be investment advice, such information is impersonal and not tailored to the investment needs of any specific person. Your use of this report is governed by TheStreet, Inc.'s Terms of Use found at PAGE 5