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The Editors at Encyclopedia of Stamps

NASDAQ:STMP announced results for the third quarter ended September 30, 2007

For the third quarter:

• Total revenue was $20.3 million, an increase of 7% versus the third quarter of 2006.

• PC Postage(R) subscriber related revenue, including service revenue, store revenue and insurance revenue, was $16.8 million, up 9% versus subscriber related revenue in the third quarter of 2006.

• The number of PC Postage paid customers was approximately 345 thousand, up 19 thousand versus the second quarter 2007 number of 326 thousand, and up 34 thousand versus the third quarter 2006 number of 311 thousand.

• Total gross margin was 71.8% versus 73.1% in the third quarter of 2006.

• PC Postage business gross margin was 80.7% versus 80.9% in the third quarter of 2006, and PhotoStamps gross margin was 29.7% versus 33.8% in the same quarter last year.

• Total spending on PC Postage customer acquisition was $6.4 million, up 29% from the same quarter last year, as Stamps.com continued to invest in its PC Postage sales and marketing at a higher level than last year.

• Approximately 225 thousand sheets of PhotoStamps were shipped in the quarter, resulting in $3.5 million third quarter PhotoStamps revenue, an increase of 12% versus the third quarter of 2006.

• GAAP net income was $2.4 million, or $0.12 per fully diluted share, including approximately $0.85 million of stock-based compensation expense related to the Company's adoption of FASB Statement 123R that began in the first quarter of 2006.

• Excluding the FASB Statement 123R expense, non-GAAP net income per fully diluted share was $0.16.

PhotoStamps

During the third quarter, approximately 225 thousand PhotoStamps sheets were shipped to customers. Since the beginning of the third market test in May 2005, approximately 2.3 million sheets, or more than 45 million individual PhotoStamps, have been shipped to customers. Total third quarter PhotoStamps revenue was $3.5 million, an increase of 12% versus revenue of $3.1 million in the third quarter of 2006. Estimated total sales and marketing expenses directly related to PhotoStamps exceeded PhotoStamps gross profits for the third quarter.

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