Postal Service Begins Evaluation Period
LOS ANGELES, Sept. 29 /PRNewswire-FirstCall/ -- Stamps.com (Nasdaq: STMP)
was asked today by the U.S. Postal Service to conclude its market test and to
cease taking customer orders for PhotoStamps(TM) as of October 1, 2004, to
allow the Postal Service to conduct a review of the program. The USPS stated
that it expects to make a decision on the future of the PhotoStamps program
within 90 days. Customer response to the market test of the new
PhotoStamps(TM) product has been overwhelmingly positive with an estimated
100,000 sheets, or 2,000,000 individual PhotoStamps, ordered during the
approximately seven weeks of the market test which began with the public
launch on August 10.
Stamps.com recently submitted a formal request to the U.S. Postal Service
to extend the PhotoStamps market test for a definite period of time, or to
start a new market test of the service. That request is expected to be
considered during the Postal Service's evaluation period. Stamps.com also
made a request that it be allowed to continue taking PhotoStamps orders while
the program was evaluated, and that request was effectively denied.
"We are disappointed with this outcome as it puts the PhotoStamps program
into a state of limbo as the holiday season approaches, however we acknowledge
the Postal Service's request to evaluate the program before additional orders
are taken," said Stamps.com president and CEO Ken McBride. "By all reasonable
measures, we think this program has been overwhelmingly successful. The
customers have voted loud and clear with their orders -- now it is up to the
USPS."
Stamps.com will continue to accept orders for PhotoStamps at
http://www.photostamps.com through midnight PDT on September 30, 2004. All orders
received up to that point will be fulfilled by Stamps.com in the following
business days. All PhotoStamps postage is valid US postage and can be used at
any point in the future. The evaluation period stoppage affects 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 expects to ship
approximately 80,000 of the approximately 100,000 PhotoStamps sheets ordered;
the remaining sheets are expected to be shipped during the fiscal fourth
quarter. Revenue on PhotoStamps sales is recognized as the product is
shipped.
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.
For further information please contact: Investors, Austin Rettig,
Director, Investor Relations, Stamps.com, +1-310-482-5830; or Press,
Dena Cook of PR21, +1-310-566-2283, dena.cook@pr21.com, for Stamps.com
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