Stamps.com Updates Net Operating Loss Status, Requests that Shareholders Approaching 5% Ownership Contact the Company
SANTA MONICA, Calif, — May 6, 2004 – Stamps.com™ (Nasdaq: STMP – News), today provided an update to a study it undertook last year to understand the status of its net operating losses (NOLs). Based on that study and more recent estimates, the company continues to believe that it has not undergone a change of control that would trigger an impairment of the use of its NOLs during approximately the past four and one half years. In order to continue to protect this NOL asset, Stamps.com is requesting that all of its investors directly contact the company’s investor relations department prior to allowing their ownership interest approach a five percent level.
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 currently believes that it is approximately 12% below the 50% level that would trigger impairment of its NOL asset.
Additional information regarding the Company’s NOLs, and last year’s 382 study can be found in Stamps.com’s Annual Report on form 10K filed with the Securities and Exchange Commission for the fiscal year ended December 31, 2003. The Annual Report as well as any other documents filed by Stamps.com with the SEC, may be obtained free of charge at the Company’s web site at http://investor.stamps.com/edgar.cfm.
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 and home offices, and currently has partnerships with companies including Microsoft, CompUSA, EarthLink, HP, 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, 2003, Quarterly Reports on Form 10-Q, and 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.