STAMPS.COM SECURES RECOMMENDATION FOR DEVELOPMENT OF NEW DISCOUNTED RATE FOR INTERNET POSTAGE
Decision by U.S. Postal Rate Commission is First Step Towards Establishing a Discount for Internet Postage Users Through the Creation of a New Mail Classification
Recommendation Now Moves to Governors of U.S. Postal Service
SANTA MONICA, Calif. – November 14, 2000 – Stamps.com(TM) (Nasdaq: STMP), the leading provider of Internet mailing and shipping services, received a major endorsement in support of the emerging Internet postage category on Monday, as the U.S. Postal Rate Commission recommended the creation of a new discounted rate for First Class mail sent using Internet postage.
“This recommendation is a huge vote-of-confidence for the emerging Internet postage category,” said Frank Heselton, former Assistant Postmaster General for Rates, and now a consultant to Stamps.com. “The creation of this new classification is a logical first step towards establishing a specific and permanent discount for users of Internet postage. It is unusual for the Commission to recommend creation of a new category in the first hearing in which it’s considered. Significant support exists within the postal community for developing a specific discount for this category.”
A rate reduction for Internet postage, which was proposed by Stamps.com earlier in the year, would provide significant cost-savings to users of the Stamps.com service and is expected to increase the company’s leading customer base.
The decision now moves to the Governors of the U.S. Postal Service (USPS). With the Governor’s approval, a new discounted rate category would be formally established. Stamps.com petitioned the Postal Rate Commission for a four-cent discount for Internet postage, based on the cost-savings provided to the USPS through automated processing of mail. If adopted, the next step would be for the USPS to recommend a discount amount to the Rate Commission for final approval.
If the USPS ultimately institutes a discount, users of traditional, non-Internet Postage meters will still pay the standard First Class rate – soon to be raised to 34 cents – while Stamps.com’s customers will pay a lower rate. As part of its recommendations issued on Monday, the Rate Commission declined a proposal by Pitney Bowes to establish a discount for postage meters.
“The potential savings for our customers through this recommendation is significant,” said Stamps.com Interim CEO Bruce Coleman. “A discount should lead to increased customer acquisition by providing a strong incentive to use our service and should result in a growth in usage among our current base. Traditional meters would not provide this discount.”
Stamps.com(TM) provides the easiest, smartest way to mail or ship letters, packages or parcels anywhere, anytime. Stamps.com provides 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 markets outside the U.S. Visit sdcmainprod.wpengine.com for more information.
“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 that could cause actual results to differ materially from those in the forward-looking statements include the fact that an actual reduction in rates may not ever occur and the potential reduction in rates may not actually increase customer acquisition for the Company and usage of the Company’s services. Other factors which may cause actual results to differ 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, its quarterly report on Form10-Q for the fiscal quarter ended June 30, 2000, and its Current Reports on Form 8-K. 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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