Stamps.com Provides Details Regarding Recent Net Operating Loss Study
Stamps.com Requests that Shareholders Nearing 5% Ownership Contact the Company
SANTA MONICA, Calif, — October 30, 2003 – Stamps.com (Nasdaq: STMP – News), today provided details regarding the outcome of a study it undertook to understand the status of its net operating losses (NOLs). Based on that study, the company believes that it has not undergone an Internal Revenue Code Section 382 change of control that would trigger an impairment of the use of its NOLs since its secondary offering in December 1999.
Under the complicated Section 382 rules, a change in ownership can occur whenever there is a shift in ownership by more than 50 percentage points by one or more five-percent shareholders within a three-year period. When a change of ownership is triggered, the NOLs may be impaired. Stamps.com estimates that it is currently 12% below the 50% level that would trigger impairment of its NOL asset. Therefore, Stamps.com is requesting that all of its investors contact the company prior to allowing their ownership interest to reach a five-percent level.
Stamps.com (Nasdaq: STMP) is a leading provider of Internet-based postage services. Stamps.com enables customers to print U.S. Postal Service-approved postage with just a PC, printer and Internet connection. The company targets its services to small businesses, home offices, and individuals, and currently has partnerships with companies including CompUSA, Earthlink, HP, Microsoft, NCR, Office Depot, Vendio and the U.S. Postal Service.
“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 complete its products and obtain regulatory approval, 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 for the fiscal year ended December 31, 2002, its subsequent Quarterly Reports on Form 10-Q, 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.
Stamps.com, the Stamps.com logo, NetStamps and Hidden Postage are trademarks or registered trademarks of Stamps.com Inc. All other brands and names are property of their respective owners.