STAMPS.COM LAUNCHES NEW ENHANCED VERSION OF INTERNET POSTAGE

Survey Shows Stamps.com Internet Postage Service Rates “Excellent” in Ease and Convenience, Value for the Price, Customer Support, Reliability

SANTA MONICA, Calif. – July 18, 2000 – Stamps.com™ (Nasdaq: STMP), the leading provider of Internet mailing and shipping services, today gained U.S. Postal Service approval and launched the next generation of its Internet Postage(tm) service, developed with significant feature enhancements based on feedback from its more than 230,000 customer base.

Stamps.com Internet Postage 2.0 allows users to print U.S. Postal Service-approved postage on envelopes or labels with just a personal computer (PC), printer and Internet connection. In addition to many new time-saving features, Stamps.com’s service now includes an integrated Web browser for easier navigation, supports windowed envelopes for invoicing and bill paying and prints postage on custom or odd-sized envelopes. Stamps.com has also added new shipping features including support for Parcel Post and a set of tools for price comparison and package tracking.

“The next generation of PC Postage products as seen from Stamps.com will continue to fuel customer interest in PC-based postage solutions,” said Raymond Boggs, an analyst with the Massachusetts-based market research firm IDC, who has covered the Internet postage market since its inception. According to the U.S. Postal Service, approximately 302,000 PC Postage licenses have been established in the U.S. in the 10 months since regulatory approval was granted. Approximately 75 percent of the licenses issued are for Stamps.com customers, with the balance distributed among the four competing products.

A recent survey conducted by Prognostics, a leading market research firm, reported stellar customer satisfaction ratings levels by Stamps.com Internet Postage users. Specifically, the Prognostics survey found that 90 percent of customers surveyed would recommend the service to a friend or colleague. Additionally, the survey cited Stamps.com Internet Postage as excellent in the areas of overall ease and convenience, value for the price, customer support and reliability.

“Through technologies such as Stamps.com Internet Postage 2.0, small businesses and home offices are gaining access to an increasing number of advanced capabilities that were once only available to large corporate mailers. It really helps level the playing field for smaller businesses looking to compete,” noted Boggs.

Stamps.com Internet Postage 2.0

  • New Interface and Web Browser Integration: The new user interface makes it easier for users to find what they need. Also, the software is now integrated with the Web, allowing customers to access online support or order supplies without opening a new Web browser window.

  • Window Envelopes: The new Window Envelope Internet postage labels let customers pay bills and mail correspondence using window envelopes.

  • Custom Envelopes: Users can print postage directly on most envelopes that can be fed through a printer with the addition of the Custom Envelope Wizard.

  • Address Override: Internet Postage 2.0 lets you override the address verification process. This gives customers the freedom to print postage for ‘vanity’ or obscure addresses. Addresses can now be formatted using both upper and lower cases.

  • Import Addresses: The Address Import Wizard imports addresses from most custom databases without having to make any formatting modifications.

  • Parcel Post: Internet Postage 2.0 lets customers send large and awkward packages at the speed of first class mail, but at a discounted rate.

  • Shipping Tools: With the new shipping tools, customers can compare rates and track packages shipped with the U.S. Postal Service, UPS, FedEx, Airborne Express, DHL and Yellow Freight.

  • Special Services: Choose any special service, such as delivery confirmation, return receipt, certified mail, insurance, or registered mail, and Stamps.com Internet Postage will automatically calculate the cost and add it to the postage.

Pricing and Availability

The service is available to new and existing customers for download today at sdcmainprod.wpengine.com/postage. Customers already using Stamps.com Internet Postage can simply download a free upgrade of the service.

Stamps.com offers two pricing plans tailored for low and high volume users. The Simple Plan is available at 10 percent of the postage purchased per month, with a minimum charge of $1.99. The Power Plan is available for a flat rate of $15.99 per month.

About Stamps.com

Stamps.com™ provides the easiest, smartest way to mail or ship letters, packages or parcels anywhere, anytime. Stamps.com operates three business units focused on providing valuable e-services allowing small businesses, large corporations and e-commerce companies to control costs and efficiently manage their mailing, shipping and returns operations. Its business is anchored in key relationships with the U.S. Postal Service and United Parcel Service (UPS) and other carriers, including FedEx, Airborne Express, DHL and Yellow Freight. Stamps.com’s subsidiary, EncrypTix Inc., leverages its highly secure, patented technologies enabling companies to provide value-bearing documents like tickets, coupons and certificates over the Internet to consumers. Stamps.com International will extend the company’s reach into foreign markets. Visit sdcmainprod.wpengine.com for more information.

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“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 filings with the Securities and Exchange Commission made from time to time by Stamps.com, including its annual report on Form 10-K/A for the fiscal year ended December 31, 1999 and its quarterly report on Form10-Q for the fiscal quarter ended March 31, 2000. Stamps.com undertakes no obligation to release publicly any revisions to any forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

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