Tax Basis Worksheet

Please be aware that the information contained herein is general in nature and should not be construed to be legal, business, or tax advice.  You should consult your personal tax advisor as to the particular tax consequences of each transaction highlighted here, including the applicability and effect of any state, local, and foreign tax laws.

Pitney Bowes Spin-off of Imagistics

On December 3, 2001 Pitney Bowes and Imagistics International became independent companies.  Pitney Bowes made a special distribution of Imagistics stock to its shareholders of record on November 19, 2001.  Shareholders of Pitney Bowes received 8 shares of Imagistics for every 100 shares of Pitney Bowes owned.  Since this special distribution (of Imagistics stock) was a tax-free distribution, the tax basis allocation of the spin-off should be:

 

                        Pitney Bowes                             97.75%

                        Imagistics International               2.25%

(Based upon the cost basis of Pitney Bowes stock purchased or owned prior to 11/19/2001)

For detailed information please go to Investor Relations on the Imagistics website www.imagistics.com