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## CHAIRMAN’S LETTER 

The spirit of innovation is central to all we do at Pitney Bowes. Our mail and document management solutions are changing the very nature of business communications. This is what we mean when we talk about pushing the envelope. And it is in this context 

that I want to talk about our accomplishments in 2004 and the excellent opportunities that I see for the future. 

I am extremely pleased by the company’s performance in 2004. Our diversified revenue base drove growth of 8 percent. Our organic revenue growth was 3 percent, excluding the effect of strategic transactions and currency translation. Both rates are the highest we have had in five years. We also had an exceptionally strong finish to the year. In fact, the fourth quarter was our best quarter in more than four years. 

As part of our growth strategies, we aggressively pursued acquisitions in 2004, completing 14 and strengthening our market position on a number 

of fronts, including our software capabilities, our Mail Services business and our global presence. We also continued to expand our broad range of offerings with exciting 

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new products and services, including new digital meters that are helping to boost the performance of our mail finishing business. The letter from Bruce Nolop, our Chief Financial Officer, provides addi- tional perspective on our results on page 27 of this 

bility of our mailing and shipping solutions, including digital mailing systems specifically designed for small mailers and our new shipping solution for the small office and home office. 

> Mail Services revenue grew 20 percent at sites we have owned for more than a year and earnings grew even faster. The PSI Group has grown from 12 facilities in 2002 to a network of 30 sites processing 

report. Here, I want to concentrate on the factors that drove our performance. 

## SIX GROWTH ENGINES 

Pitney Bowes is in the enviable position of having six diversified growth engines. They all contributed to the company’s success in 2004 and should continue to drive growth for years to come. Here are some highlights: 

> Small Business Solutions delivered 8 percent revenue growth and double-digit earnings growth in 2004 and enlarged its market base to 840,000 customers, a net increase of 115,000 customers since 2002. Small businesses value the convenience and flexi- 

