E-Stamp Announces Fourth Quarter and Year End 1999 Results; Exceeds Expectations with $1.3 million in Revenue for 1999.

Business Editors/High Tech Writers

SAN MATEO, Calif.--(BUSINESS WIRE)--Feb. 3, 2000

Company Accelerates Strategy to Extend Secure

Business-to-Business E-Commerce Platform

E-Stamp Corporation (Nasdaq: ESTM), a leading provider of Internet postage services and a developer of secure business-to-business e-commerce solutions, today announced that it had exceeded internal forecasts, ending the year with more than 46,000 units of E-Stamp(R) Internet postage starter kits shipped. The company generated revenue of $960,000 in the fourth quarter of 1999 and $1.3 million for the year.

&uot;We achieved strong results during the fourth quarter, executing on our business plan and outpacing our goals for revenue and units shipped,&uot; said Robert (Bo) H. Ewald, president and chief executive officer of E-Stamp. &uot;We've carried this momentum into the new year as shown by our exclusive alliance with eBay, the first-ever international Internet postage trial with Canada Post and the demonstration of online ticketing technology for the events, entertainment and retail industries.&uot;

Expansion of Core Mailing and Shipping Business

E-Stamp, the first company to offer its Internet postage solution commercially, continues to aggressively expand the breadth of its core mailing and shipping business. The company is focused on growth in several key areas including broadening its Internet mailing services and online supplies business; entering new markets such as international and distributed enterprise; and expanding its family of products and services including the development of a server-based Internet postage solution. These activities provide E-Stamp with the ability to increase revenue per customer, offer more choice and convenience and reap the benefits of new, incremental market opportunities.

&uot;E-Stamp is committed to changing the way businesses handle the routine task of sending out mail and parcels by delivering online postal services that are professional, efficient and hassle-free,&uot; said Ewald. &uot;We're aggressively pursuing the $60 billion domestic postage market by delivering solutions that can simplify all of the mailing and shipping needs of these businesses, from printing postage for First Class letters to sending Express and Priority Mail packages.&uot;

In addition to growing its domestic business, E-Stamp also became the first Internet postage company to break into the $90 billion international postage market through a trial with Canada Post Corporation.

According to Ewald, the company is not stopping at core mailing services. E-Stamp is also pursuing the $60 billion shipping market.

&uot;We've seen other vendors offering simple rate shopping services as their shipping solution. You'll see E-Stamp take a much more comprehensive approach, embracing both the traditional shipping and logistics companies as well as web-based shipping services. This will enable the company to provide business-to-business e-commerce solutions to brick-and-mortar enterprise companies and meet the needs of small businesses. With the expansion of our mailing and shipping services, we're really focusing on delivering on the promise of e-commerce -- convenience, choice and control -- to our customers.&uot;

Extension of Secure E-Commerce Platform

E-Stamp also began extending its secure e-commerce platform to other business areas, developing a variety of solutions for new market opportunities. Recent demonstrations of online ticketing and gift certificate technologies -- all based on the proprietary secure platform the company created to meet the United States Postal Service's strict standards -- illustrate how the company's technology can now be commercialized for business-to-business e-commerce solutions.

&uot;Pioneering Internet postage was only the first step. Over the last few months, the company made huge strides in solidifying our leadership as an Internet postage provider while simultaneously using this proprietary e-commerce technology platform to build a suite of new productivity tools. These accomplishments strongly position the company to acquire new and valuable customers, enter into new and growing markets, and reap the benefits of additional revenue streams in the year 2000 and beyond,&uot; Ewald said.

Financials

E-Stamp generated revenue of $960,000 in the fourth quarter of 1999 and $1.3 million for the year, ending the year with over 46,000 units of E-Stamp(R) Internet postage starter kits shipped. The company recorded a net loss of $27.8 million, or $(0.81) per share, for the fourth quarter of 1999, compared with a net loss of $3.5 million, or $(0.16) per share, for the same quarter of 1998. The net loss from operations, excluding amortization of deferred compensation, in the fourth quarter of 1999 was $25.8 million, compared with $3.1 million in the same period in 1998. For the year-ended December 31, 1999, the company reported a net loss of $55.4 million, or $(2.18) per share, compared with a net loss of $10.7 million, or $(0.57) per share, in the same period of the previous year. The company made its Initial Public Offering (IPO) of common stock on October 8, 1999, raising net proceeds of $126 million.

Recent Corporate Highlights

Since launching its service last August, E-Stamp has secured exclusive and premiere partnerships with key leaders in the small business market including eBay, Intuit and Microsoft.

&uot;The formula for success in the Internet postage space is acquiring high quality, revenue generating customers who have the propensity to purchase postage and supplies on an ongoing basis,&uot; said Ewald. &uot;In order to fully realize the potential of our strategic partners, we've employed an aggressive `seed the market' strategy aimed at placing E-Stamp Internet postage in the hands of these higher volume mailers and shippers.&uot;

New Partnerships and Alliances

-- CANADA POST CORP. (January 27, 2000): E-Stamp announced the

first-ever pilot test of Internet postage in an international

market as Canada Post Corporation is set to begin a full market

trial with E-Stamp Internet postage. This trial positions the

company as the first Internet postage provider to enter the $90

billion international postal market.

-- eBAY (January 12, 2000): E-Stamp announced a strategic

relationship with eBay to promote E-Stamp as the exclusive

provider of Internet postage for the eBay community. The

multi-year agreement provides E-Stamp access to eBay's 10 million

community members who spend an estimated several hundred million

dollars annually on postage.

-- INTUIT (January 5, 2000): E-Stamp entered into a strategic

alliance with Intuit for immediate availability and promotion of

E-Stamp Internet postage to the more than two million users of

QuickBooks, 90% of whom use the Internet for business purposes.

E-Stamp will be the only Internet postage service integrated into

the QuickBooks desktop application.

-- MICROSOFT (December 15, 1999): E-Stamp and Microsoft announced an

expansion of their strategic alliance to extend E-Stamp's reach

to the hundreds of thousands of small businesses that frequent

the MSN(TM) network of Internet services as well as bCentral(TM)

online business services, Microsoft's small-business portal on

the Web.

-- SEIKO INSTRUMENTS (November 22, 1999): E-Stamp signed a joint

sales, marketing and distribution agreement to bundle E-Stamp's

Internet postage with Seiko's Smart Label Printers creating a

complete office solution to simplify and automate SOHO's handling

of routine and specialized mailing operations.

-- RETAIL CHANNEL EXPANSION (November 15, 1999): E-Stamp entered

into expanded or new retail channel partnerships with America

Online, Inc. (NYSE: AOL), Beyond.com, Buy.com, CDW Computer

Centers, Inc. (Nasdaq: CDWC), Comp USA, Inc. (NYSE: CPU), Fry's

Electronics, MicroWarehouse, Micro Center, Multiple Zones

(Nasdaq: MZON), Office Depot (NYSE: ODP) and Office Max.

New Technology &Product Applications

-- TICKETING (January 26, 2000): E-Stamp demonstrated an innovative,

cost-effective way to distribute and print tickets online for

events, movies and performances during the annual INTIX

convention. This solution will enable consumers to access and

print secure tickets online using only a Web browser. Benefits

include broad distribution for vendors and increased convenience

for consumers. The market for event ticketing reached in excess

of $20 billion in sales during 1998.

-- GIFT CERTIFICATES (January 18, 2000): E-Stamp unveiled a similar

web-based application for providing an innovative, cost-effective

way to distribute and print gift certificates. This solution will

enable consumers to access and print secure gift certificates

online using only a Web browser. Benefits include broad

distribution for vendors and increased convenience for consumers.

The market for gift certificates and coupons is estimated at over

$18 billion in sales during 1998.

-- NEW PATENTS (December 8, 1999): E-Stamp announced two new

patents, bringing its patent total to 26. E-Stamp's patent

portfolio is an important part of its business strategy to

solidify its competitive position in the Internet postage market

as well as expand its range of new business opportunities.

Several of E-Stamp's patents cover core elements of Internet

postage from printing postage using a personal computer to

generating postage directly from software applications such as a

word processing program. The company's two new patents involve

systems designed to make Internet postage and e-mail easier to

use and more secure.

About E-Stamp Corporation (Nasdaq: ESTM)

E-Stamp Corporation provides Internet solutions designed to help businesses and consumers complete secure transactions. The first application of this technology is an easy-to-use Internet postage service that enables customers to purchase, download and print postage directly from their personal computer. The purchased postage can be printed onto envelopes, labels or documents using standard laser or inkjet printers, 24 hours a day, seven days a week, without the need to remain connected to the Internet. The company received approval from the U.S. Postal Service in August 1999 for its Internet postage service, and since then has been selling that solution nationally. E-Stamp Corporation has established strategic relationships with industry leaders including Microsoft, eBay, Yahoo!, Compaq, Excite@Home, America Online, Intuit, Francotyp-Postalia and Avery Dennison. For more information about E-Stamp Corporation and E-Stamp Internet postage, please visit the company's web site at www.e-stamp.com.

E-Stamp, the e-stamp logo, e-stamp.com, and The Internet Postage Company are either trademarks or registered trademarks of E-Stamp Corporation. Other product and company names mentioned herein may be the trademarks of their respective owners.

&uot;Safe Harbor&uot; Statement under the Private Securities Litigation Reform Act of 1995: This release contains forward-looking statements that involve risks and uncertainties, including forward-looking statements regarding the company's extension of its products and technologies to international, ticket, coupon, gift certificate, shipping and other markets, the development of technologies and solutions for these markets, the development of additional Internet postage solutions, the acquisition of future customers, the addition of future revenue streams and the resulting increase in future revenues. Important factors, which could cause actual results to differ materially from those in the forward-looking statements, include the company's ability to develop and market products within these markets, the acceptance by these markets of the company's products and technologies, the company's ability to develop and maintain strategic relationships in the retail and entertainment industries, the ability of the company to effectively compete against its competitors and the ability of the company to manage the growth of its business. Additional factors that may affect our results are detailed in filings with the Securities and Exchange Commission made from time to time by E-Stamp Corporation, including its prospectus for its initial public offering filed on October 12, 1999 and its Form 10-Q for the quarter ending September 30, 1999.

MEDIA GUIDELINES FOR THE USE OF THE E-STAMP TRADEMARK

The term E-STAMP is a registered trademark of E-Stamp Corporation and should only be used to identify the brand of our products and services. For example, you may refer to our products and services as the E-STAMP Internet postage solution, E-STAMP Internet postage software, E-STAMP Internet postage services, or E-STAMP Internet postage. Do not use the terms &uot;e-stamp,&uot; &uot;e-stamps,&uot; &uot;estamp,&uot; or &uot;estamps&uot; as a generic term for Internet postage, and do not use &uot;e-stamp&uot; or &uot;estamp&uot; as a verb (e.g., &uot;to e-stamp&uot; in place of &uot;to print postage&uot;) or as a noun (e.g., an &uot;e-stamp&uot; in place of &uot;Internet postage&uot;).

E-Stamp Corporation's Internet postage products and services are authorized by the United States Postal Service and its Information-Based Indicia Program (IBIP). The program is designed to introduce a two dimensional barcode called an information-based indicia (IBI). You may refer to the printed postage as &uot;indicia,&uot; &uot;information-based indicia,&uot; &uot;IBI,&uot; &uot;digital stamps,&uot; &uot;digital postage,&uot; &uot;Internet stamps,&uot; or &uot;Internet postage.&uot;

Please contact Ed Malysz, V.P. General Counsel, at [phone] if you have any questions concerning the proper use of our name and trademarks.

                          E-Stamp Corporation
                       Statements of Operations
                            (In Thousands)

                                   For the Three     For the Three
                                   Months Ended       Months Ended
                                     12/31/99          12/31/98

 Revenue                                        960           -

 Cost of Sales                                1,664           -

Gross Profit                                   (704)          -
GM Percent                                   -73.3%           -

Operating Expenses:
Research &Development                        5,730       1,693
Sales &Marketing                            16,002         914
General &Administration                      3,326         516
Deferred Compensation Amortization            3,670         534
                                            -------      ------
Total Operating Expenses                     28,728       3,657

Operating Loss                              (29,432)     (3,657)

Interest Income                               1,597         151
Interest Expense                                 (1)         (2)

Net Loss                                    (27,836)     (3,508)

Net loss per share                            (0.81)      (0.16)

Shares used in computing net                 34,433      21,431
loss per share (a)

(a) Includes all shares of convertible preferred stock on an as
converted basis for the periods such shares were outstanding.


                          E-Stamp Corporation
                       Statements of Operations
                            (In Thousands)


                                      For the Twelve    For the Twelve
                                       Months Ended      Months Ended
                                          12/31/99          12/31/98

Revenue                                    1,318                 -

Cost of Sales                              2,396                 -

Gross Profit                              (1,078)                -
GM Percent                                -81.8%                 -

Operating Expenses:
Research &Development                    14,024             5,603
Sales &Marketing                         23,242             2,722
General &Administration                   8,419             1,897
Deferred Compensation Amortization        10,589               858
                                         -------            ------
Total Operating Expenses                  56,274            11,080

Operating Loss                           (57,352)          (11,080)

Interest Income                            1,979               380
Interest Expense                             (37)              (10)

Net Loss                                 (55,410)          (10,710)

Net loss per share                         (2.18)            (0.57)

Shares used in computing net              25,387            18,753
loss per share (a)

(a) Includes all shares of convertible preferred stock on an as
converted basis for the periods such shares were outstanding.


                         E-Stamp Corporation
                            Balance Sheets
                            (In Thousands)


                                      As of 12/31/99   As of 12/31/98
Assets
Current Assets
  Cash and Cash Equivalents                  118,689         10,217
  Accounts Receivable - Trade                    237             -
  Other Receivable                               253             -
  Inventory                                     2,120            -
  Prepaid Marketing Expenses                    6,156            -
  Prepaids &Other Current Assets               6,222          144
                                             --------      -------
Total Current Assets                          133,677       10,361

Fixed Assets                                   2,740           450

Total Assets                                 136,417        10,811
                                             --------      -------

Liabilities and Stockholders' Equity

Current Liabilities
  Accounts Payable - Trade                        707          62
  Accrued Expenses                              8,164       1,467
  Short-Term portion of Capital Leases             23          27
  Deferred Revenue                                193           -
                                              -------     -------
Total Current Liabilities                       9,087       1,556

Long-Term Liabilities                               -          11

Stockholders' Equity                          127,330       9,244

Total Liabilities &Stockholders' Equity      136,417      10,811