PhotoStamps™ Launches; Allows Consumers to Create Personalized Postage

Turn Digital Photos – Babies, Pets, Memories – Into Valid U.S. Postage

 

LOS ANGELES – May 17, 2005 – Stamps.com® (Nasdaq: STMP), the leading provider of Internet-based postage services, today announced the official launch of PhotoStamps™, the popular form of postage that allows consumers to turn their digital photos, designs or images into valid U.S. postage. Consumers can now easily create customized postage using pictures of their children, pets, vacations, celebrations and more at www.photostamps.com. Each PhotoStamp is valid U.S. postage and can be used as regular postage to send letters, postcards or packages. A market test for the product begins today, May 17, 2005, and is expected to last one year.

PhotoStamps is currently available for the most common mail rates in denominations ranging from $0.23 to $3.85. Each sheet includes 20 individual PhotoStamps. To order, consumers simply upload a digital photograph or image file at www.photostamps.com, customize the look and feel by choosing one of ten different border colors to complement the image, select the value of postage and place the order. The interface is fun, functional and incredibly easy-to-use.

“PhotoStamps allows consumers to share memories in a very unique way,” said Stamps.com president and CEO Ken McBride. “PhotoStamps is the perfect way to add a personal touch to wedding invitations, birth announcements, greeting cards and more.”

For this new one year market test, Stamps.com is introducing a redesigned look for PhotoStamps with a more aesthetically pleasing appearance. The overall dimensions of each individual PhotoStamp remain unchanged at 1 3/8 inches high by 1 7/8 inches wide. Stamps.com is accepting personal images and photos that meet its content guidelines, including babies, children, teens, adults, pets and other personal images.

PhotoStamps is a patented Stamps.com product that couples the technology of PC Postage with the simplicity of a web-based image upload and order process.

About Stamps.com® and PhotoStamps™

Stamps.com (Nasdaq: STMP) is a leading provider of Internet-based postage services. Stamps.com enables over 375,000 customers to print U.S. Postal Service-approved postage with just a PC, printer and Internet connection, right from their home or office. 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.

PhotoStamps is a patented Stamps.com product that couples the technology of PC Postage with the simplicity of a web-based image upload and order process. PhotoStamps was extremely popular during the initial market test which was announced on Aug. 10, and ran through Sept. 30, 2004. During that 7 1/2 week period, more than 2.75 million individual PhotoStamps were ordered. PhotoStamps is expected to be available under authorization of the U.S. Postal Service for a second, year-long market test that began May 17, 2005.

“Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995: This release includes forward-looking statements about our anticipated results and available products that involve risks and uncertainties. Important factors, including the Company’s ability to complete and ship 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 fiscal year ended December 31, 2004, 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.