PhotoStamps are Hot!

Customers Order 800,000 Photostamps PhotoStamps In
First Three Weeks

LOS ANGELES – September 2, 2004 – (Nasdaq: STMP) today announced that customer response to its new PhotoStamps™product has been overwhelmingly positive — with 40,000 sheets, or 800,000 individual PhotoStamps, ordered since the August 10th public launch.

“We’re very pleased with how well the product has been received already” said president and CEO Ken McBride. “Customer feedback has been extremely positive with over 90% of surveyed customers telling us they are likely to order PhotoStamps again.”

Tens of thousands of customers have already used PhotoStamps to make their mail more exciting. The most popular images include babies, children, families, friends, pets, and travel photos. Wedding invitations, party invitations, thank you letters, and birth announcements have been popular applications of PhotoStamps.

In addition, orders for corporate logos and other business applications have been popular and growing quickly as companies are finding that PhotoStamps can be an effective tool for direct marketing, special event and product promotion, charity fund raising, or as unique corporate gifts. To encourage further growth in this segment, this week introduced a volume pricing discount for orders ranging from two to 500 sheets.

Ordering PhotoStamps is easy. Customers go to and simply upload a digital photograph or image file, customize the look and feel of the image, choose one of ten different border colors to compliment the photo, select the value of postage, and place the order online. The interface is fun, functional, and incredibly easy to use. Each sheet includes twenty individual PhotoStamps, and orders arrive via US Mail in a few business days. PhotoStamps are currently available for the most common sizes of mail in denominations ranging from $0.23 to $3.85. has received US Postal Service authorization to proceed with a market test of PhotoStamps. The market test is expected to continue through September 30, 2004.

About PhotoStamps

PhotoStamps is brought to you by Inc, a leading provider of Internet-based postage services. In addition to providing the PhotoStamps product, PC Postage Service enables over 300,000 customers to print U.S. Postal Service-approved postage with just a PC, printer and Internet connection. The Company targets its PC Postage services to small businesses and home offices, and currently has partnerships with companies including Microsoft, CompUSA, EarthLink, HP, NCR, Office Depot,, Taylor Corporation and Vendio.

“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, 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. 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., the logo and PhotoStamps are trademarks or registered trademarks of Inc. All other brands and names are property of their respective owners.