PhotoStamps Focusing on Most Popular Categories

LOS ANGELES – September 13, 2004 –® (Nasdaq: STMP) today announced that it will focus on the top categories of its popular PhotoStamps product. The top two categories–babies and children, and pets and animals–will continue to be accepted on the PhotoStamps website. The PhotoStamps website will also continue to accept other popular categories of images including landscapes, nature, wildlife, business logos, and charity logos. Images that include adults or teens will no longer be accepted via the PhotoStamps website, but will continue to be accepted through trusted channels such as approved photographers or portrait studios.

The public response to PhotoStamps has been very enthusiastic. More than a million individual PhotoStamps have been ordered since the service was launched on August 10th, and more than ninety percent of customers surveyed said they will order PhotoStamps again. Currently in a market test, PhotoStamps continues to respond to consumer demand while refining its processes. The market test of PhotoStamps is expected to continue through September 30, 2004.

“We are overwhelmed by the early success of PhotoStamps,” said CEO Ken McBride. “Consumers have told us that PhotoStamps allow people to share memories – from new parents sharing baby pictures to adoring pet owners sharing favorite images of their animals. We want to focus on what has been most successful to date and make appropriate changes to the product during our test phase.”

McBride added, “We have limited the use of the product in certain categories in response to the abusive actions of a few people that went to great lengths to use the product in inappropriate ways. We want to preserve the essence of the product that tens of thousand of customers use in a fun, creative, and positive manner.”

Business and charity applications of PhotoStamps have already proven to be very popular, with more than a hundred inquires to date regarding higher volume uses of PhotoStamps. plans to increase its efforts to expand higher volume business and charitable applications of PhotoStamps, while also continuing to enhance the availability of PhotoStamps to consumers.

About PhotoStamps

PhotoStamps is a PC Postage product brought to you by Inc., the 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, 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, PhotoStamps, NetStamps and Hidden Postage are trademarks or registered trademarks of Inc. All other brands and names are property of their respective owners.