Over 600,000 PhotoStamps Ordered on Final Day of Market Test

LOS ANGELES – October 4, 2004 – Stamps.com (Nasdaq: STMP) announced today that on September 30, the final day of the market test for PhotoStamps™, it received an overwhelming customer response with more than 600,000 PhotoStamps ordered in the final 24 hour period. Overall customer response to the market test of the new PhotoStamps product has been very positive, with more than 130,000 sheets, or 2,600,000 individual PhotoStamps, ordered during the market test, which began with a public launch on August 10 and lasted 7 1/2 weeks through September 30.

“Customers embraced PhotoStamps from the very first day of launch of the market test. The momentum grew rapidly and the response on the final day of the test was simply phenomenal,” said Stamps.com president and CEO Ken McBride. “In a very short period of time, this product became extremely popular with consumers and businesses. We also think PhotoStamps is a great program for the US Postal Service, generating over $1 million in USPS postage revenue – the majority of which we believe is new revenue – in only 52 days. It is clear that consumers and businesses want this product.”

Stamps.com recently submitted a formal request to the US Postal Service to continue testing the PhotoStamps service. That request is being considered during an evaluation period that is expected to take 90 days, at most, from the end of the market test on September 30.

During the 7 1/2 week market test, Stamps.com received over 80,000 individual photos, graphics or logos that were submitted through the PhotoStamps web site or via mail order. The most popular image categories ordered were babies and children, and pets and animals. Other popular submissions during the market test included business logos, couples, families, uniformed soldiers, landscapes, buildings, artistic items, and vehicles.

PhotoStamps postage is valid US postage and can be used at any point in the future. The evaluation period stoppage affected only the PhotoStamps program and in no way impacts the regular Stamps.com PC Postage product. For the fiscal quarter ended September 30, Stamps.com shipped approximately 80,000 of the approximately 130,000 PhotoStamps sheets ordered; the remaining sheets are expected to be shipped during the fiscal fourth quarter.

About PhotoStamps

PhotoStamps is a PC Postage product brought to you by Stamps.com Inc, a leading provider of Internet-based postage services. In addition to providing the PhotoStamps product, Stamps.com 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 includes forward-looking statements about our expectations that involve risks and uncertainties. Important factors, including the Company’s ability to complete and ship 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 and PhotoStamps are trademarks or registered trademarks of Stamps.com Inc. All other brands and names are property of their respective owners.