MOUNTAIN VIEW, CA, - E-Stamp Corporation (Nasdaq: ESTM), a leading provider of secure Internet-based transactions, today announced that it will phase out its Internet postage product line to enable the Company to focus on its web-based shipping and logistics solutions. "Over the past two quarters, E-Stamp has steadily been outlining a more aggressive move into shipping and logistics," said Robert (Bo) Ewald, president and CEO of E-Stamp Corporation. "Our acquisition of two logistics companies in May of this year enabled us to move into the supply-chain execution market, which, according to a recent report by AMR, is expected to reach $8 billion by 2004. "At the same time," added Ewald, "we have seen less favorable results in our Internet postage business. We have therefore determined that our best course of action is to phase out Internet postage and redeploy our resources toward the greater market opportunity presented by our logistics solutions, Digital Shipper and e-Warehouse." Current customers for these solutions include: Oracle, Intel, Sony Music, SanDisk Corporation, Symbol Technologies, iPrint and the California Department of Forestry. As part of the transition, the Company will reduce staff by approximately 30%, redeploying the existing organization and resources toward the shipping and logistics opportunity. As of the end of the third quarter of 2000, E-Stamp's cash and cash equivalents totaled approximately $40 million. In a letter sent to E-Stamp customers today, the Company outlined details of the transition and thanked customers for helping to pioneer Internet postage. E-Stamp was the first company to receive USPS approval for Internet postage technology and the first company to offer Internet postage commercially. Said Ewald, "The business reality of operating in a highly-regulated environment, combined with the change in valuation models of Internet companies, were key factors influencing our decision to phase out our postage business and leverage the greater opportunities presented by shipping and logistics." In reviewing its various strategic alternatives, the Company concluded that phasing out its Internet postage business was in the best interest of its shareholders. The Company will continue to explore alternatives to maximize the value of its assets and intellectual property going forward. Migration Plan: Customers Encouraged to Adopt Neopost Online's Simply PostageÆ In order to facilitate a smooth transition for customers, E-Stamp has partnered with Neopost Online to encourage customers to adopt Neopost's convenient and comparable Internet Postage solution, Simply Postage. "To enable our customers to continue enjoying the benefits of Internet Postage, we encourage them to switch to Simply Postage, the Internet Postage product of Neopost Online. After reviewing all the industry vendors we selected Neopost. Neopost has a reputation for high quality products and customer service, 70 years of experience in the postage industry and tremendous knowledge of this highly-regulated environment," added Ewald.