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This Annual Report on Form 10-K, including information incorporated herein by reference, contains
“forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of
the Securities Exchange Act of 1934. These statements relate to expectations concerning matters that are not
historical facts. Words such as “projects,” “believes,” “anticipates,” “estimates,” “plans,” “expects,” “intends,”
and similar words and expressions are intended to identify forward-looking statements. We cannot assure you that
the expectations of future events will prove to be correct. Some of the factors that could cause actual results to differ
materially from those expectations are disclosed in this document including, without limitation, in the “Risk
Factors” section of this report. All forward-looking statements attributable to Stamps.com are expressly qualified in
their entirety by this cautionary statement and you should not place undue reliance on any forward-looking
statement. Stamps.com does not undertake any obligation to update any forward-looking statements. You are also
urged to carefully review and consider the various disclosures we have made which describe factors which affect
our business, including the “Risk Factors”. Stamps.com registration filings pursuant to the Securities Exchange Act
of 1934 are available via the company website at www.stamps.com.
Stamps.com, NetStamps, Stamps.com Internet Postage, and the Stamps.com logo are our trademarks. This
Report also includes trademarks of entities other than Stamps.com.
PART I.
ITEM 1. BUSINESS
Overview
Stamps.com provides easy, convenient and cost-effective Internet based services for mailing or shipping
letters, packages or parcels anywhere in the United States and at anytime. Our mailing and shipping service is
designed to allow individual consumers, home offices or small businesses to print US postage or shipping labels
using any PC, any ordinary inkjet or laser printer, and an Internet connection. Based on current information
available from the US Postal Service, we believe that we have over 85% of the total PC Postage subscription
customers.
Stamps.com Inc. (the “Company” or “Stamps.com”) was founded in September 1996 to investigate the
feasibility of entering into the US Postal Service’ s Information Based Indicia Program and initiate the certification
process for our PC Postage service. In January 1998, we were incorporated in Delaware as StampMaster, Inc. and
changed our name to Stamps.com Inc. in December 1998. We completed our initial public offering in June 1999 and
our common stock is listed on the Nasdaq stock market under the symbol “STMP.”
The principal executive offices are located at 12959 Coral Tree Place, Los Angeles, California, 90066, and
the telephone number is (310) 482-5800.
Mission and Business Strategy
Stamps.com was founded with the mission to allow anyone to print valid U.S. postage using just a personal
computer, an ordinary printer, and an internet connection. In August 1999, Stamps.com became the first company
approved by the US Postal Service to utilize a software-only business model under the US Postal Service’ s PC
Postage® program. Today, Stamps.com provides its PC Postage service to over 350,000 registered customers that
include small businesses, large businesses, home offices, and consumers. The Company’ s core business strategy
includes the following focus areas. First, the Company plans to continue to grow its PC Postage customer base
through cost effective marketing to small businesses, home offices, and larger businesses. Second, the Company
plans to continue its role as a technology leader in order to bring new products and new innovations to its customers.
Past Company innovations include the software-only PC Postage model it introduced in 1999 and the feature
NetStamps™ it introduced in 2002. Third, the Company plans to continue to broaden the services and products it
offers to its customers which are synergistic with its core PC Postage service offering. Past examples of this strategy
include the Stamps.com mailing and shipping supplies business line that was launched in 2002, and a branded
insurance offering the Company introduced in 2003. Finally, the Company plans to add new products or services,
based on its core technology, but that address new market segments or utilize new business models. An example of
this strategy is the PhotoStamps™ business model that the Company tested under authorization of the US Postal
Service during 2004.