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EXHIBIT 99.1
Blanc & Otus Public Relations
Kristin Reeves
415-912-2333
[email protected]
Investor Relations
Hill and Knowlton
Eileen Morcos
323-966-5748
[email protected]
E-STAMP PHASES OUT INTERNET POSTAGE TO FOCUS ON WEB-BASED SHIPPING AND LOGISTICS
BUSINESS
Company Redirects Resources Toward $8 Billion Market
MOUNTAIN VIEW, CA, November 27, 2000 - 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."
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"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.
Like E-Stamp Internet Postage, Simply Postage offers convenient and secure
offline capabilities.
Neopost Online has special offers available to all former E-Stamp customers
who migrate to their Simply Postage products. E-Stamp customers will be notified
of these special offers via e-mail and direct mail.
E-Stamp ceased shipments of its Internet Postage starter kits on November
24. Customers may continue to purchase postage until December 31, 2000, and E-
Stamp will provide customer support and accept returns of postage and vaults
through March 1, 2001.
Additional details of the migration plan will be posted on the E-Stamp Web
site (www.e-stamp.com).
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About Neopost Online, Inc.
Neopost Online, Inc. is a subsidiary of Neopost Inc., a 70 year-old company
and the world's second largest mailroom equipment provider. Neopost Online's
Simply Postage products offer a wide range of Internet-based postage solutions.
Neopost is listed on the first market of the Paris Stock Exchange.
About E-Stamp
E-Stamp Corporation is a leading provider of secure Internet-based
solutions designed to help companies streamline their critical business
processes. From its Internet postage solution, E-Stamp(R) Internet Postage, to
its comprehensive multi-carrier shipping solution, DigitalShipper (TM)
Enterprise, to its next generation supply chain/warehouse management system, e-
Warehouse(TM), E-Stamp is driving the e-commerce shipping process. The Company
provides businesses with end-to-end e-logistics and e-fulfillment services
including inventory management, warehousing and delivery.
E-Stamp Corporation has established strategic relationships with industry
leaders including Avery Dennison, Compaq, eBay, Francotyp-Postalia, Intuit,
Kewill E-Commerce, and Microsoft. For more information about E-Stamp
Corporation, please visit the Company's Web site at www.e-stamp.com .
"Safe Harbor" Statement under the Private Securities Litigation Reform Act
of 1995: This release contains forward-looking statements that involve risks and
uncertainties, including statements that the Company will focus exclusively on
its shipping and logistics businesses, and that the Company hopes to continue to
increase revenues from the shipping and logistics market. Important factors that
could cause actual results to differ materially from those in the forward-
looking statements, include the Company's ability to continue to penetrate the
shipping and logistics markets, to continue to increase its revenues in shipping
and logistics, the acceptance by customers of the Company's shipping and
logistics products and services, the Company's ability to have adequate cash to
take it to profitability, and the competitive nature of the shipping, logistics
and Internet postage markets. Additional factors that may affect results are
detailed in filings with the Securities and Exchange Commission made from time
to time by E-Stamp Corporation, including its Form 10-K for the year ending
December 31, 1999, and Form 10-Q for the quarter ending September 30, 2000.
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
Postage(R)
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.
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NOTE: E-Stamp and the E-Stamp logo are registered trademarks, and
DigitalShipper and e-warehouse are trademarks, of E-Stamp Corporation. Other
trademarks are the property of their respective owners. SOURCE E-Stamp
Corporation
Press Contacts
Blanc & Otus Public Relations
Kristin Reeves
415-912-2333
[email protected]
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Investor Relations
Hill and Knowlton
Jennifer Barfoot
323-966-5786
[email protected]
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