Pitney Bowes Announces Leadership Transition and New Initiatives to Accelerate Value Creation

Pitney Bowes Inc. (NYSE: PBI) (“Pitney Bowes” or the “Company”), a global shipping and mailing company that provides technology, logistics and financial services, today announced the appointment of Lance Rosenzweig as the Company’s interim Chief Executive Officer (“CEO”), effective immediately. Mr. Rosenzweig will continue to serve as a member of the Board of Directors (the “Board”). In connection with today’s appointment, Jason Dies has stepped down from the role of interim CEO and retired from the Company following years of valued service in various executive roles. Pitney Bowes thanks Mr. Dies for his strong contributions and leadership.

The Board believes that Mr. Rosenzweig is best positioned to accelerate the Company’s transformation and drive enhanced value for shareholders as interim CEO. In addition, the Board has converted its Finance Committee into a Value Enhancement Committee, which is tasked with overseeing financial, operational and strategic efforts associated with the initiatives described below. These decisions follow the reconstituted Board’s assessment of ways to expedite Pitney Bowes’ transformation into a more streamlined enterprise focused on its core, cash-generating segments.

The initiatives include:

• Cost Rationalization – Building on previously announced efficiency measures that totaled approximately $85 million, Pitney Bowes has retained a nationally recognized consultant to support a cost rationalization review. Initial analysis has identified an additional $60 million to $100 million in potential annualized savings across the organization, apart from the Global Ecommerce (“GEC”) business.
• GEC Accelerated Review – Pitney Bowes is working to expeditiously conclude a strategic review of the segment. The Board, whose members have significant transaction experience, is increasing its involvement in the review to drive the near-term completion of a review that is intended to enhance shareholder value.
• Cash Optimization – Pitney Bowes is working to reduce its go-forward required cash needs by approximately $200 million. The Company intends to achieve this goal by improving its liquidity forecasting and management at all levels, taking action on GEC and optimizing the balance sheet of Pitney Bowes Bank (the “Bank”). In addition to freeing up cash for the Company, the Bank optimization work will improve its return on equity.
• Balance Sheet Deleveraging – Pitney Bowes is taking required actions to capitalize on the benefits linked to the three aforementioned initiatives. In the near-term, leadership intends to deleverage the corporate balance sheet and prioritize the paydown of high-cost debt.

In connection with these initiatives, Pitney Bowes has retained two nationally recognized consulting firms with financial and operational expertise.