Pitney Bowes Agrees to Acquire Bell & Howell's International Mail and Messaging Technologies

Significantly Strengthens European and Asian Presence;

Positions Company for International Growth



Apr 18, 2001, 01:00 ET from Pitney Bowes

    STAMFORD, Conn., April 18 /PRNewswire/ -- Pitney Bowes Inc. (NYSE:   PBI)
 has entered an agreement to acquire Bell & Howell's International Mail and
 Messaging Technologies (MMT) business in Europe, Africa, Middle East and Asia,
 for $51 million in cash.  The parties expect the transaction to close sometime
 in the second quarter of 2001, subject to governmental approval as well as
 works council consultations.  London-based Bell & Howell International MMT
 markets and services high-end mail processing, sorting and service-related
 products through a network of distributors and direct operations with reported
 revenues of $84 million in 2000.
     The acquisition provides Pitney Bowes with critical mass in key
 international markets, a  variety of complementary products and services, and
 a platform for accelerated global growth in high-volume, high-value strategic
 mail and document management.  "Acquiring Bell & Howell's International MMT
 business forwards our mission to  provide innovative products and services
 that respond to the fast changing needs of global  customers," said Michael J.
 Critelli, chairman and CEO of Pitney Bowes.  "It also supports our strategic
 goal of expanding our overall presence and market share in non-U.S. markets.
 With this acquisition we expand the opportunity for our leading edge document
 management products, build critical mass in areas of great opportunity such as
 the German, French and Japanese markets, and significantly enhance our overall
 breadth of coverage (including direct sales and service) in growth areas such
 as Belgium and the Netherlands."
     The two companies are a good strategic fit.  Adding Bell & Howell's
 International MMT development and manufacturing functions and broad
 international sales and service coverage to the existing capabilities of
 Pitney Bowes Document Messaging Technologies (DMT) group and seeking logical
 infrastructure synergies with Pitney Bowes Global Mailing organization creates
 a broadly capable, highly competitive global organization.  "Brian Baxendale
 (president, Pitney Bowes DMT), Patrick Keddy (president, Global Mailing,
 Europe/Africa/Middle East) and their organizations are enthusiastic about this
 opportunity and convinced that it is a win for our customers and shareholders
 alike," Mr. Critelli commented.
     Bell & Howell's International MMT distribution network includes operations
 in the U.K., Germany, Japan, France, Austria, Belgium, the Netherlands,
 Singapore and Switzerland as well as independent dealers in other markets.
 More than 300 sales and service personnel provide highly skilled customer
 support and deliver superior service response time for the company's
 3,000 plus high-end 'document factory' mailers and mail house customers.  The
 company's Freidberg, Germany-based manufacturing and engineering organization
 enhance the customer value-proposition as well.  "Having manufacturing
 capabilities in closer proximity to our customers is key to our competitive
 market position and gives us the additional flexibility to respond to European
 and Asian customers," said Mr. Critelli.
     Pitney Bowes Document Messaging Technologies (DMT) today enjoys double
 digit growth in both revenue and operating profit.  Though its operations have
 been predominantly centered in North-America, Pitney Bowes DMT leads the
 industry in innovative "document factory" and document management applications
 solutions.  The company has enjoyed recent notable success in Europe,
 providing its Digital Document Delivery (D3) solution for two large posts and
 a major bank to support Web-based document delivery.
     "We give businesses a way to maximize the marketing impact of every
 customer communication," said Brian Baxendale, president of Pitney Bowes
 Document Messaging Technologies.  "Through strategic application of
 technology, our expert professional services personnel provide the essential
 high-level support needed to extract top value from these strategic mail,
 messaging and document management processes.  By refining data bases with
 leading-edge list cleansing and data integrity tools, increasing production
 efficiency through sophisticated work flow and project management, or adding
 practical, flexible capabilities such as selectable Web or electronic message
 delivery, we increase the power and reach of our customers while helping them
 contain costs.  This drive to make the most of every asset and every contact
 is a critical component of good customer relationship management."
 
     Pitney Bowes Document Messaging Technologies has three key components:
 
     * Document Factory Solutions provides integrated document management
       solutions for high-volume transactional (billing, statements,
       notifications) and direct mail marketplaces in which large volume
       applications are managed with a "manufacturing" mindset to enhance
       productivity.  These integrated hardware and software systems (DFWorks)
       consist of high-speed inputs, intelligent and non-intelligent inserters,
       outputs, and state-of-the-art sorting systems.
 
     * Incoming Messaging Solutions offers cutting edge technologies that
       processes incoming mail many times faster and with greater accuracy than
       manual methods, and support the widest range of mail and packages from
       postcard and letter mail to flats.  The system also creates and
       maintains an accurate recipient "address" file and tracks and reports on
       operations to enhance workflow management.
 
     * Pitney Bowes DocSense serves business-to-consumer, business-to-business
       and internal messaging markets, delivering advanced solutions for
       efficient creation, distribution and management of a variety of
       documents in either paper or digital format, including bills, statements
       and payments.
 
     "At Bell & Howell's International MMT unit, our mission has been to exceed
 our customers' expectations in terms of product, service and software," said
 Mike Muller, the company's managing director who will stay on with Pitney
 Bowes.  "Over the years we have deployed leading edge products and software in
 the market and our service organization is clearly among the best in the
 industry.  By adding cutting edge Pitney Bowes Document Messaging Technologies
 functionality to our core offerings and leveraging our solid sales, service
 and support expertise, we will continue to exceed customer expectations as
 well as build an organization that provides our associates opportunities for
 professional growth. I look forward to working with both Mr. Baxendale's
 Document Messaging Technologies organization and Pitney Bowes Global Mailing's
 EAME group (Europe, Africa, Middle East) under Patrick Keddy to expand our
 solutions and broaden our markets."
 
     About Pitney Bowes
     Pitney Bowes is a $4 billion global provider of integrated mail and
 document management solutions headquartered in Stamford, Connecticut.  The
 company serves over 2 million businesses of all sizes in more than
 130 countries through dealer and direct operations.  For additional
 information about Pitney Bowes, please visit our website at
 http://www.pitneybowes.com.
 
     About Bell & Howell
     Bell & Howell Co., with headquarters in Ann Arbor, Mich., is a leading
 information solutions and services provider to industries worldwide.  In each
 of its businesses, the company transforms information through software and
 services, helping its customers operate more effectively and efficiently.  For
 high volume mailers, Bell & Howell Mail and Messaging Technologies develops
 and markets turnkey solutions that transform routine mailings (e.g. statements
 and invoices) into highly targeted paper- and electronic-based customer
 communications. For more information on Bell & Howell Mail and Messaging
 Technologies businesses, call 800/220-3030 or visit
 http://bellhowell.mailmessaging.com.  Additional information on Bell & Howell
 Co. can be found at http://www.bellhowell.com.
 
 

SOURCE Pitney Bowes
    STAMFORD, Conn., April 18 /PRNewswire/ -- Pitney Bowes Inc. (NYSE:   PBI)
 has entered an agreement to acquire Bell & Howell's International Mail and
 Messaging Technologies (MMT) business in Europe, Africa, Middle East and Asia,
 for $51 million in cash.  The parties expect the transaction to close sometime
 in the second quarter of 2001, subject to governmental approval as well as
 works council consultations.  London-based Bell & Howell International MMT
 markets and services high-end mail processing, sorting and service-related
 products through a network of distributors and direct operations with reported
 revenues of $84 million in 2000.
     The acquisition provides Pitney Bowes with critical mass in key
 international markets, a  variety of complementary products and services, and
 a platform for accelerated global growth in high-volume, high-value strategic
 mail and document management.  "Acquiring Bell & Howell's International MMT
 business forwards our mission to  provide innovative products and services
 that respond to the fast changing needs of global  customers," said Michael J.
 Critelli, chairman and CEO of Pitney Bowes.  "It also supports our strategic
 goal of expanding our overall presence and market share in non-U.S. markets.
 With this acquisition we expand the opportunity for our leading edge document
 management products, build critical mass in areas of great opportunity such as
 the German, French and Japanese markets, and significantly enhance our overall
 breadth of coverage (including direct sales and service) in growth areas such
 as Belgium and the Netherlands."
     The two companies are a good strategic fit.  Adding Bell & Howell's
 International MMT development and manufacturing functions and broad
 international sales and service coverage to the existing capabilities of
 Pitney Bowes Document Messaging Technologies (DMT) group and seeking logical
 infrastructure synergies with Pitney Bowes Global Mailing organization creates
 a broadly capable, highly competitive global organization.  "Brian Baxendale
 (president, Pitney Bowes DMT), Patrick Keddy (president, Global Mailing,
 Europe/Africa/Middle East) and their organizations are enthusiastic about this
 opportunity and convinced that it is a win for our customers and shareholders
 alike," Mr. Critelli commented.
     Bell & Howell's International MMT distribution network includes operations
 in the U.K., Germany, Japan, France, Austria, Belgium, the Netherlands,
 Singapore and Switzerland as well as independent dealers in other markets.
 More than 300 sales and service personnel provide highly skilled customer
 support and deliver superior service response time for the company's
 3,000 plus high-end 'document factory' mailers and mail house customers.  The
 company's Freidberg, Germany-based manufacturing and engineering organization
 enhance the customer value-proposition as well.  "Having manufacturing
 capabilities in closer proximity to our customers is key to our competitive
 market position and gives us the additional flexibility to respond to European
 and Asian customers," said Mr. Critelli.
     Pitney Bowes Document Messaging Technologies (DMT) today enjoys double
 digit growth in both revenue and operating profit.  Though its operations have
 been predominantly centered in North-America, Pitney Bowes DMT leads the
 industry in innovative "document factory" and document management applications
 solutions.  The company has enjoyed recent notable success in Europe,
 providing its Digital Document Delivery (D3) solution for two large posts and
 a major bank to support Web-based document delivery.
     "We give businesses a way to maximize the marketing impact of every
 customer communication," said Brian Baxendale, president of Pitney Bowes
 Document Messaging Technologies.  "Through strategic application of
 technology, our expert professional services personnel provide the essential
 high-level support needed to extract top value from these strategic mail,
 messaging and document management processes.  By refining data bases with
 leading-edge list cleansing and data integrity tools, increasing production
 efficiency through sophisticated work flow and project management, or adding
 practical, flexible capabilities such as selectable Web or electronic message
 delivery, we increase the power and reach of our customers while helping them
 contain costs.  This drive to make the most of every asset and every contact
 is a critical component of good customer relationship management."
 
     Pitney Bowes Document Messaging Technologies has three key components:
 
     * Document Factory Solutions provides integrated document management
       solutions for high-volume transactional (billing, statements,
       notifications) and direct mail marketplaces in which large volume
       applications are managed with a "manufacturing" mindset to enhance
       productivity.  These integrated hardware and software systems (DFWorks)
       consist of high-speed inputs, intelligent and non-intelligent inserters,
       outputs, and state-of-the-art sorting systems.
 
     * Incoming Messaging Solutions offers cutting edge technologies that
       processes incoming mail many times faster and with greater accuracy than
       manual methods, and support the widest range of mail and packages from
       postcard and letter mail to flats.  The system also creates and
       maintains an accurate recipient "address" file and tracks and reports on
       operations to enhance workflow management.
 
     * Pitney Bowes DocSense serves business-to-consumer, business-to-business
       and internal messaging markets, delivering advanced solutions for
       efficient creation, distribution and management of a variety of
       documents in either paper or digital format, including bills, statements
       and payments.
 
     "At Bell & Howell's International MMT unit, our mission has been to exceed
 our customers' expectations in terms of product, service and software," said
 Mike Muller, the company's managing director who will stay on with Pitney
 Bowes.  "Over the years we have deployed leading edge products and software in
 the market and our service organization is clearly among the best in the
 industry.  By adding cutting edge Pitney Bowes Document Messaging Technologies
 functionality to our core offerings and leveraging our solid sales, service
 and support expertise, we will continue to exceed customer expectations as
 well as build an organization that provides our associates opportunities for
 professional growth. I look forward to working with both Mr. Baxendale's
 Document Messaging Technologies organization and Pitney Bowes Global Mailing's
 EAME group (Europe, Africa, Middle East) under Patrick Keddy to expand our
 solutions and broaden our markets."
 
     About Pitney Bowes
     Pitney Bowes is a $4 billion global provider of integrated mail and
 document management solutions headquartered in Stamford, Connecticut.  The
 company serves over 2 million businesses of all sizes in more than
 130 countries through dealer and direct operations.  For additional
 information about Pitney Bowes, please visit our website at
 http://www.pitneybowes.com.
 
     About Bell & Howell
     Bell & Howell Co., with headquarters in Ann Arbor, Mich., is a leading
 information solutions and services provider to industries worldwide.  In each
 of its businesses, the company transforms information through software and
 services, helping its customers operate more effectively and efficiently.  For
 high volume mailers, Bell & Howell Mail and Messaging Technologies develops
 and markets turnkey solutions that transform routine mailings (e.g. statements
 and invoices) into highly targeted paper- and electronic-based customer
 communications. For more information on Bell & Howell Mail and Messaging
 Technologies businesses, call 800/220-3030 or visit
 http://bellhowell.mailmessaging.com.  Additional information on Bell & Howell
 Co. can be found at http://www.bellhowell.com.
 
 SOURCE  Pitney Bowes