E-Stamp Phases Out Internet Postage to Focus on Web-Based Shipping And
Logistics Business Company Redirects Resources Toward $8 Billion Market
MOUNTAIN VIEW, Calif., Nov 27, 2000 /PRNewswire via COMTEX/ -- 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 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.
"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).
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.
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
CONTACT: Kristin Reeves of Blanc & Otus Public Relations, 415-912-2333
or kreeves@blancandotus.com, or investors, Eileen Morcos of H
ll and Knowlton,
323-966-5748, or emorcos@hillandknowlton.com, both for E-Stam
Corporation
URL: e-stamp.com
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KEYWORD: California
INDUSTRY KEYWORD: MLM
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