SANTA MONICA, Calif., and BREA, Calif., January 19, 1999 – Stamps.com™, the innovator of Postage Server™ technology for delivery of postage over the Internet, and Avery Dennison, the world leader in the development and manufacturing of self-adhesive solutions, announced the creation of a new marketing and distribution alliance.

In support of the new alliance, a free Stamps.com download will be prominently featured as the Internet Postage service available through the Software section of the Avery.com Web site. This offer is expected to be available by the second half of 1999. In addition, Stamps.com software will be exclusively bundled in the AVERY LabelPro® 3.0 for Windows® retail software package, the most popular stand-alone label printing software with over one million users across the U.S. Stamps.com Internet Postage software will also exclusively support Avery Dennison laser and inkjet label formatting templates, including a new selection of Avery Dennison labels designed specifically for Internet Postage.

"A sizable market opportunity exists for Avery Dennison with the introduction of electronic postage," said Jill Karrenbrock, director, Strategic Alliances, at Avery Dennison Office Products North America Division. "Working with Stamps.com's server-based technology increases our presence in the $40 billion postage market."

"The alliance of the Avery® brand with Stamps.com creates a winning combination for the home office and small business marketplace in terms of postal convenience," said John M. Payne, Stamps.com President and CEO. "And with our Postage Server technology, Avery Dennison customers receive the special benefit of an Internet Postage solution that does not require additional hardware, just the free Stamps.com software."

Stamps.com will enable the user to print postage directly onto Avery-brand labels, envelopes, and business documents, using nothing more than an ordinary laser or inkjet printer. More convenient and cost-effective than stamps or traditional postage meters, the Stamps.com Internet Postage service gives small business, home, and corporate users the ability to generate professional-looking First Class, Priority, and Express Mail 24 hours a day, 7 days a week. Stamps.com is currently approved by the U.S. Postal Service for Beta and market testing, and expects approval from the USPS for a national rollout during the first half of 1999. Currently, Stamps.com provides the only USPS-approved Internet Postage solution which does not require installation of a hardware device on each PC to achieve the acceptable level of security.

About the USPS Information Based Indicia Program

The Information Based Indicia Program (IBIP) is a regulated, multi-vendor program operated by the U.S. Postal Service. All IBIP product offerings and distribution channels require submission and approval under the IBIP, which operates within the USPS Office of Metering Technology Management to ensure the highest levels of security and operation integrity for all IBIP systems. Computer users interested in participating in the Stamps.com Beta test in San Francisco and in areas surrounding Washington, DC should visit the company's Web site at http://www.stamps.com. For more information on the IBIP, please visit the USPS Web site at http://www.usps.gov/ibip.

Avery Dennison Office Products North America is a leading manufacturer of self-adhesive labels for laser and inkjet printers, labeling software, binders, sheet protectors, index dividers and other office, home, and school-related supplies. The business unit of Avery Dennison Corporation is based in Brea, California. For more information about AVERY-brand products, consumers can visit the Web site at http://www.avery.com.

About Stamps.com

Stamps.com is a leading provider of highly secure transaction-oriented Internet services for the consumer, small business and corporate users. Stamps.com partners include America Online, Inc. (AOL), Avery Dennison, Peachtree Software, and other leading office supply and technology companies. The company was founded in 1996 with the mission of using the power of the digital age to streamline the way consumers and businesses purchase and apply postage. Stamps.com is located at 3420 Ocean Park Blvd., Suite 1040, Santa Monica, CA 90405, and at http://www.stamps.com. The company is privately held and funded through venture capital investments from Enterprise Partners; Brentwood Venture Capital; and Forest, Binkley and Brown.

Press Contact
Beth Johnson
Fitzgerald Communications
650.264.1457
bjohnson@fitzgerald.com

Avery Dennison Company Contact:
Jill Karrenbrock
Avery Dennison
Director, Strategic Alliances
(714) 674-8943