Santa Monica, Calif. (October 28, 1999) – (Nasdaq: STMP), the leader in Internet Postage(TM), today announced that it passed the 10,000 customer mark earlier this week. also reported an operating loss of $14.4 million for the third quarter ended September 30, 1999. The third quarter loss is consistent with’s continued investment in its technology, and its accelerated investment in marketing ahead of its October 22, 1999 national launch.

Net loss applicable to common shareholders was $13.7 million, or $0.40 per share, based on the weighted average number of 34.1 million common shares outstanding. Excluding the non-cash deferred compensation charge of $1.05 million, net loss would have been $12.6 million, or $0.37 per common share.

“ has reached several milestones as it enters into the fourth quarter,” said CEO John Payne. “The national launch of our service will revolutionize the way small office and home office users buy and use postage by providing a convenient and cost-effective solution. Our portfolio of strategic relationships has grown to include IBM, 3M, Lotus, and ZDNet, and we greatly expanded our relationship with AOL. In addition, the recent agreement to acquire has doubled’s market opportunity and has positioned to become the leader in Internet shipping and mailing services.”

Recent Events

October 25, 1999 — announced the appointment of CEO John Payne to the additional position of chairman of the board. In addition, announced the appointment of postal industry veteran Loren Smith as president and chief operating officer.

October 25, 1999 – announced that it has agreed to acquire privately-held, a leading provider of Internet-based shipping technology. The acquisition will establish as the only online service that will be able to offer small business, consumer, and corporate enterprise customers a single source for all their mailing and shipping needs.

October 22, 1999 – announced the nationwide availability of its Internet Postage service, becoming the only company to enable consumers and businesses to print postage any time using just a computer, printer, and Internet connection.

October 21, 1999 – America Online, Inc. (NYSE: AOL), the world’s leading interactive services company, and announced a broad distribution and marketing alliance that will make the exclusive provider of Internet Postage on AOL, Netscape, and CompuServe branded CD-ROMs, giving millions of small business customers access to software. AOL will also make a multi-million dollar investment in

October 18, 1999 – announced that Bob Newhart, the beloved star of such hit television shows as “The Bob Newhart Show” and “Newhart”, is the company’s new spokesperson. Newhart will star in an innovative television and print advertising campaign for that launches in select markets before rolling out nationally at the end of the year.

October 12, 1999 – and International Business Machines (IBM), a leading manufacturer and developer of hardware and software solutions (NYSE: IBM) announced a marketing and distribution alliance that will bring service to over one million customers who are members of the IBM Owner Privileges Program, a unique membership program for IBM Aptiva PC and Thinkpad i Series system owners.

September 30, 1999 – announced a partnership with 3M (NYSE: MMM) and unveiled details of its alliances with ZDNet (NYSE: ZDZ) and Lotus Development Corp, the developers of Lotus Organizer, an industry-leading Personal Information Manager. Together the three partnerships continue to expand access to online service among small businesses and consumers.


Founded in 1996, Santa Monica-based is the only commercially approved true Internet Postage service. The company’s innovative technology eliminates the need for specialized hardware by giving customers the flexibility to print postage over the Internet – securely, accurately and fast. Through partnerships with major companies including America Online, IBM, Microsoft, Office Depot, and 3M, has tremendous reach into the small office/home office and consumer markets. More information about the company can be found 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, including the Company’s ability to integrate acquired companies and its ability to meet future capital requirements, could cause actual results to differ materially from those in the forward-looking statements are detailed in filings with the Securities and Exchange Commission, made from time to time by, including its Form 10-Q for the quarter ended June 30, 1999, and’s prospectus, related to its initial public offering, that was filed with the SEC on June 25, 1999.

Internet Postage, and the logo are trademarks of Inc. All other brands and names are property of their respective owners.

                            STAMPS.COM INC.
                     (A DEVELOPMENT STAGE COMPANY)
                       STATEMENTS OF OPERATIONS

                                              Three Months Ended
                                         September 30,  September 30,
                                             1999          1998

Revenues                                 $         --  $         --
Costs and expenses:
  Research and development                  2,370,848       292,382
  Sales and marketing                       7,640,454            --
  General and administrative                4,412,467       513,959
                                         ------------  ------------
    Total costs and expenses               14,423,769       806,341
                                         ------------  ------------
Loss from operations                      (14,423,769)     (806,341)
Other income (expense):
  Interest expense                            (40,269)       (4,349)
  Interest income                             766,044         1,732
                                         ------------  ------------
Net loss                                 $(13,697,994) $   (808,958)
                                         ============  ============
Basic and diluted net loss per share     $      (0.40) $      (0.17)
                                         ============  ============
Pro forma basic and diluted net loss
 per share                               $      (0.40) $      (0.07)
                                         ============  ============
Weighted average shares outstanding
 used in basic and diluted per-share
 calculation                               34,101,500     4,897,500
Weighted  average shares outstanding
 used in pro forma basic and diluted
 per-share calculation                     34,101,500    10,984,700

                            STAMPS.COM INC.
                            BALANCE SHEETS

                                        September 30,  December 31,
                                             1999         1998
Current assets:
     Cash and cash equivalents            $61,198,260 $ 3,470,207
     Prepaid advertising                    6,531,018          --
     Prepaid expenses                         684,495      48,118
                                          ----------- -----------
Total current assets                       68,413,773   3,518,325
Property and equipment, net                 5,339,565     670,301
Other assets                                  432,138     237,193
                                          ----------- -----------
Total assets                              $74,185,476 $ 4,425,819

Total current liabilities                   7,033,444   2,133,525
Capital lease obligations, less
 current portion                              500,214     265,070
  Redeemable preferred stock                       --   5,978,344
Total stockholders' equity (deficit)       66,651,818  (3,951,120)
                                          ----------- -----------
Total liabilities and stockholders'
 equity (deficit)                         $74,185,476 $ 4,425,819