Stamps.com 2005 Annual Report Download - page 11

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Employees
As of December 31, 2005, we had 155 employees not including temporary or contract workers. Our employees work in various
departments including customer support, research and development, sales and marketing, information technology and general administration.
None of our employees are represented by a labor union. We believe that our relationship with our employees is good.
Government Regulation
On January 5, 2006, President Bush signed a new law which clarified a longstanding law around advertising on U.S. currency, known as
18 US Code Section 475.
The new law amends Section 475 to clarify that the earlier law does not apply to products that are officially approved
by the US Postal Service. In compliance with the original law, the Postal Service restricted our ability to accept business advertising for usage
on PhotoStamps during the second market test. The recent amendment clears the way for the Postal Service to remove this restriction as it
relates to PhotoStamps. If and when the USPS does remove this restriction, we will begin marketing the PhotoStamps product for business use.
Recent Developments
On March 13, 2006, we announced that the US Postal Service approved a third market test that would allow us to sell PhotoStamps for a
further two year period to end in March 2008. In this new market test, the US Postal Service is expected to lift the restriction on business
advertising for PhotoStamps that had been in place during the previous market test. We announced that we would likely enter into this third
market test in the next two months.
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