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U.S. Postal Service Halts PhotoStamps

2004-10-01 - Los Angeles, CA, USA: (Nasdaq: STMP) has been by the U.S. Postal Service to conclude its market test and to cease taking customer orders for PhotoStamps(TM) as of October 1, 2004, to allow the Postal Service to conduct a review of the program. The USPS stated that it expects to make a decision on the future of the PhotoStamps program within 90 days. Customer response to the market test of the new PhotoStamps(TM) product has been overwhelmingly positive with an estimated 100,000 sheets, or 2,000,000 individual PhotoStamps, ordered during the approximately seven weeks of the market test which began with the public launch on August 10. recently submitted a formal request to the U.S. Postal Service to extend the PhotoStamps market test for a definite period of time, or to start a new market test of the service. That request is expected to be considered during the Postal Service's evaluation period. also made a request that it be allowed to continue taking PhotoStamps orders while the program was evaluated, and that request was effectively denied.

"We are disappointed with this outcome as it puts the PhotoStamps program into a state of limbo as the holiday season approaches, however we acknowledge the Postal Service's request to evaluate the program before additional orders are taken," said president and CEO Ken McBride. "By all reasonable measures, we think this program has been overwhelmingly successful. The customers have voted loud and clear with their orders -- now it is up to the USPS."

All orders received up to 30 September will be fulfilled by in the following business days. All PhotoStamps postage is valid US postage and can be used at any point in the future. The evaluation period stoppage affects only the PhotoStamps program and in no way impacts the regular PC Postage product.

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