Stamps.com Introduces the “PhotoStamps of the Year” Contest

Winners to be Exhibited at the Smithsonian National Postal Museum

 

LOS ANGELES — June 26, 2006 — Stamps.com® (Nasdaq: STMP), a leading provider of Internet-based postage services, today announced the launch of the “PhotoStamps of the Year” contest, where customers who order and wish to enter their PhotoStamps, the popular form of postage that allows individuals to turn their digital photos, designs or images into valid U.S. postage, can win a chance to have their PhotoStamps displayed at the Smithsonian National Postal Museum.

“We are honored to introduce this exciting and novel contest in conjunction with the Smithsonian National Postal Museum,” said Ken McBride, president and CEO of Stamps.com. “Consumers have embraced PhotoStamps as a unique way to express themselves and we are excited that our customers will be able to show off their PhotoStamps in the world’s foremost museum of postal innovation.”

During the “PhotoStamps of the Year” contest, which began June 1, 2006 and will end May 31, 2007, every PhotoStamps image submitted for the contest will be reviewed and judged on aesthetic value, originality, creativity and the story behind the image. Three monthly winners will be selected by a team of judges from Stamps.com and announced on the tenth day of the following month. The three monthly winners from each month will then be entered into the grand-prize selection process. All monthly winners will also receive a commemorative, one-of-a-kind custom set of PhotoStamps made with their images.

At the conclusion of the “PhotoStamps of the Year” contest, three finalists will be selected from among the monthly winners, and the results will be announced by June 30, 2007. The top three finalists – the grand prize winner, first runner-up and second runner-up – will have their PhotoStamps exhibited at the Smithsonian National Postal Museum. The grand prize winner will also receive an all-expense-paid trip for two to see his or her PhotoStamps in the Smithsonian. The first runner-up will also receive a Canon digital camera, and the second-runner up will also receive a $250 PhotoStamps gift certificate.

Each PhotoStamp is valid U.S. postage and can be used as regular postage to send letters, postcards or packages. PhotoStamps is currently available for the most common mail rates in denominations ranging from $0.24 to $4.05. Each sheet includes 20 individual PhotoStamps. To order, customers 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.

About the National Postal Museum

The National Postal Museum is devoted to presenting the colorful and engaging history of the nation’s mail service and showcasing the largest and most comprehensive collection of stamps and philatelic material in the world. It is located at 2 Massachusetts Ave. N.E., in the Old City Post Office Building across from Union Station. The museum is open daily, except Dec. 25, from 10 a.m. to 5:30 p.m. For more information, visit the museum’s Web site at www.postalmuseum.si.edu.

About Stamps.com and PhotoStamps

Stamps.com (Nasdaq: STMP) is a leading provider of Internet-based postage services. Stamps.com enables small businesses, enterprises, 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 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. Since launching PhotoStamps for the second market test in May 2005, over 14.5 million individual PhotoStamps have been ordered by the customers. PhotoStamps is currently available under authorization of the U.S. Postal Service for its third phase market test, with an initial authorization for one year through May 16, 2007 and an option for the Postal Service™ to extend the test for a second year.

“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, 2005, 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. Adobe, the Adobe logo, Photoshop, Macromedia and Flash are either registered trademarks or trademarks of Adobe Systems Incorporated in the United States and/or other countries. All other trademarks are the property of their respective owners.