E-Stamp Settles Patent Litigation With Pitney Bowes
Press release from the issuing company
MOUNTAIN VIEW, Calif., June 28 -- E-Stamp Corporation (Nasdaq: ESTM) today announced that it entered into an agreement with Pitney Bowes, Inc. to settle all litigation between the companies. The litigation, which included patent infringement claims by Pitney Bowes and antitrust counterclaims by E-Stamp, was resolved without admission of liability. E-Stamp has paid a settlement amount to Pitney Bowes, and expects to recover insurance proceeds to largely offset the cost of settlement.
"Our settlement not only allows both companies to avoid the continuing costs and distractions of litigation, but also permits E-Stamp to focus on completing its merger with Learn2.com," said Robert (Bo) Ewald, President and CEO of E-Stamp Corporation.
Merger with Learn2.com
On April 20, 2001, E-Stamp announced that it had entered into a merger agreement to acquire online learning provider, Learn2.com. Under the terms of the merger agreement, E-Stamp expects to issue between 0.457 and 0.485 of a share of E-Stamp common stock for every share of Learn2.com common stock held by Learn2.com shareholders. Upon consummation of the merger, current E-Stamp shareholders will hold approximately 50.1% of E-Stamp, current Learn2.com shareholders will hold approximately 33.23% of E-Stamp, and the holder of Learn2.com's $10 million convertible debenture will hold approximately 16.67% of E-Stamp. Following the merger, the company intends to focus on the growing online learning market. The merger is expected to close in the third quarter of 2001.
Additional information regarding the proposed merger is set forth in E-Stamp's Form S-4 Registration Statement filed with the Securities and Exchange Commission on May 9, 2001. E-Stamp's Form S-4 Registration Statement can be viewed at E-Stamp's Investor Relations website at www.e-stamp.com. E-Stamp's Form S-4 Registration Statement has not yet been declared effective by the Securities and Exchange Commission.
E-Stamp and Learn2 expect to mail a Joint Proxy Statement/ Prospectus to their stockholders containing information about the merger after the Registration Statement is declared effective by the Securities and Exchange Commission. Investors and security holders are urged to read the Registration Statement and the Joint Proxy Statement/ Prospectus carefully.
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