Large Portion of Dividend Will Qualify as Tax-Free Return of Capital

LOS ANGELES – December 2, 2010 –® (Nasdaq:STMP) today announced that it completed payment of the $2.00 special dividend to shareholders of record on November 11, 2010, with total shares of 14,471,586 receiving the dividend for a total cash payment of $28,943,172. The Company expects to incur one-time expenses of approximately $3.5 million during the fourth quarter of 2010 related to the special dividend and its effect on employee stock options.

Based upon a preliminary tax analysis, currently estimates that 80% to 95% of the $2.00 per share special dividend will qualify as a tax-free return of capital. The final amount that qualifies as a return of capital depends on the financial outcome of fiscal year 2010 and will be communicated to shareholders once the final percentage has been determined. Shareholders are encouraged to consult with their own tax and financial advisors regarding the implications of this dividend on their individual circumstances.

About (Nasdaq: STMP) is a leading provider of Internet-based postage services.’s service enables small businesses, enterprises, advanced shippers, and consumers to print U.S. Postal Service-approved postage with just a PC, printer and Internet connection, right from their home or office. The Company currently has PC Postage partnerships with Avery Dennison, Microsoft, HP, Office Depot, the U.S. Postal Service and others.

“Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995: This release includes forward-looking statements that involve risks and uncertainties. Important factors, including the Company’s ability to complete and ship its products, maintain desirable economics for its products and obtain or maintain 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 year ended December 31, 2009, 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., the logo and PhotoStamps are trademarks or registered trademarks of Inc. All other brands and names are property of their respective owners. Investor Contact: Investor Relations
(310) 482-5830

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