E-Stamp Corp. –

SAN MATEO, Calif. – E-Stamp Corp., an on-line vendor of postage stamps, went public October 8, offering 7 million shares at $17 apiece. The company’s stock priced above its $14 to $16 filing range.

Underwritten by Donaldson, Lufkin & Jenrette, Banc of America Securities, Deutsche Banc Alex. Brown and DLJdirect Inc., the initial public offering left 38.1 million shares of stock outstanding.

There were no selling shareholders. AT&T Ventures, Microsoft Corp., Canaan Partners and Wagner & Brown Ltd. were venture backers.

Clients can download and print stamps onto documents, letters and labels through E-Stamps’ Web site, www.e-stamp.com. Customers also can use the site to calculate postal weight, determine costs and track usage.

The company plans to use the expected $109.7 million generated from the IPO for sales and marketing, brand building, marketing and distribution relationships, and for general corporate purposes, including working capital. The company also might use a portion of the proceeds to acquire complementary products, technologies or businesses.

E-Stamp has never been profitable, losing $7.7 million in 1997 and $10.7 million in 1998.

Adam Wagner, former vice president of investments at Wagner, joined the company’s board of directors in November 1996. Gregory Stanger, a senior director of corporate development at Microsoft, and Thomas Rosch, a partner at AT&T, both followed in September 1997.

E-Stamp – Selected Financial

(in thousands, except per share data)

Year Ended December 31 Six Months Ended June 30

1996 1997 1998 1998* 1999*

Net loss -6,339 -7,678 -10,710 -4,455 -12,367

Net loss per share -0.51 -0.61 -0.92 -0.37 -1

*Unaudited