SANTA MONICA, CA–July 21, 1999–, the innovator of Postage ServerTM technology for the delivery of postage over the Internet, today reported an operating loss of $6.1 million for the second quarter ended June 30, 1999. This loss is consistent with’s continuing progress towards its expected national launch later this year.

Net loss applicable to common shareholders was $5.7 million, or $0.66 per share, based on the weighted average number of 8.7 million common shares outstanding. Assuming the conversion of preferred stock at the respective dates of issuance, net loss would have been $0.19 per share, based on the weighted average number of 30.1 million common shares outstanding. Excluding the non-cash deferred compensation charge of $1.1 million, net loss would have been $4.6 million, or $0.53 per common share. The pro forma net loss per share is $0.15 excluding the non-cash deferred compensation charge.

“ ended the second quarter with a number of strengths,” said John Payne, president and chief executive officer of “We have a portfolio of strategic relationships with leading partners that includes AOL, Office Depot, and MySoftware Company. We are aggressively building an infrastructure for a world class brand and legendary customer service, and look forward to launching our service nationally later this year.”

Recent Events

July 19, 1999 — Office Depot (NYSE: ODP), the world’s largest seller of office products, announced it has selected as its preferred provider for the delivery of postage over the Internet. Under the partnership agreement, will offer the Internet Postage service from its web site, offering Office Depot customers the ability to purchase and print postage directly over the Internet.

July 12, 1999 — announced the appointment of Carolyn Ticknor, president and CEO of Hewlett-Packard Company’s (NYSE: HWP) LaserJet Imaging Systems to the Company’s Board of Directors. The Company also welcomed former American Express (NYSE: AXP) executive Christopher Hylen to its management team.

July 1, 1999 — MySoftware Company (Nasdaq: MYSW) announced a strategic partnership with Under the partnership agreement, MySoftware will integrate the Internet Postage service with its family of direct marketing software products, offering MySoftware’s small business customers the ability to purchase and print postage directly over the Internet.

June 9, 1999 — Intuit’s (Nasdaq: INTU) and entered into an exclusive marketing and sponsorship agreement that makes the exclusive Internet Postage Partner on and Small Business.

About (Nasdaq: STMP) is a leading provider of highly secure transaction-oriented Internet services for small business, consumer and corporate users. partners include America Online, Inc. (AOL), Avery Dennison, Office Depot, Intuit’s, Intel Corporation, MySoftware, Peachtree Software, Westvaco, and other leading Internet, office supply and technology companies. is located at 3420 Ocean Park Blvd. Suite 1040, Santa Monica, CA 90405, tel (310) 581-7200, fax (310) 581-7500, [email protected] and at

“Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995: This release may contain forward-looking statements that involve risks and uncertainties. Important factors which could cause actual results to differ materially from those in the forward-looking statements are detailed in the Company’s filings with the Securities and Exchange Commission, including the Company’s prospectus related to its initial public offering that was filed with the SEC on June 25, 1999.

                , Inc.
                    (A Development Stage Company)
                       Statements of Operations

                                       Three Months    Three Months
                                          Ended           Ended
                                      June 30, 1999   June 30, 1998

Revenues                                   $     -       $        -
Costs and expenses:
Research and development                 1,518,839          172,437
General and administrative               4,550,446          331,912
Total costs and expenses                 6,069,285          504,349
Loss from operations                    (6,069,285)        (504,349)
Other income (expense):
    Interest expense                       (48,698)            (465)
    Interest income                        399,060             950
Net loss                            $   (5,718,923)       $(503,864)
Basic and diluted
 net loss per share                 $        (0.66)      $   (0.10)
Pro forma basic
 and diluted net loss per share     $        (0.19)      $   (0.05)
Weighted average shares
 outstanding used in basic
 and diluted
 per-share calculation                   8,692,000       4,898,000
Weighted average shares
 outstanding used in
 pro forma basic and
 diluted per-share calculation          30,054,000      10,541,000

                     Selected Balance Sheet Items
                         as of June 30, 1999

Cash & Equivalents                   $   71,661,995
Current Assets                           73,032,856
   Total Assets                      $   76,125,578

Current Liabilities                  $    4,242,148
   Total Liabilities                      4,408,114
Stockholder's Equity                     71,717,464
   Total Liabilities & Equity        $   76,125,578