Jefferies 2013 TMT Conference

Safe Harbor This presentation contains forward-looking statements that involve risks and uncertainties, including discussions of our products, business plans and financial projections. Important risk factors, including the Company's ability to complete and ship its products, maintain desirable economics for its products and obtain or maintain regulatory approval, which could cause actual results to differ materially from those in the forward-looking statements, are detailed in filings with the Securities and Exchange Commission made from time to time by Stamps.com, including its Annual Report on Form 10-K for the fiscal year ended December 31, 2012, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K. We encourage you to review the risk factors disclosed in these filings. 2

Agenda PC Postage Service Overview PC Postage Industry and Marketing PhotoStamps Metrics and Financials Appendix 3

PC Postage Service Overview Software-based Internet service that lets customers buy and print their own U.S. Postal Service approved postage Requires only your existing PC, printer & Internet (no special hardware) Monthly subscription service fee (+ the cost of postage) Easy process to become a customer and print postage Customer registers account from our website and downloads our software Customer uses software to purchase postage for their account Customer prints postage and the postage amount is deducted from their pre-paid account balance Customer purchases additional postage for their account as needed Three ways to print postage based on mailing and shipping needs Print your own stamps (NetStamps) Print directly on envelopes Print shipping labels 4

Print Postage via Microsoft Integration Stamps.com has an integration with Microsoft Enhances the value of our solution for existing customers Is a marketing channel for acquiring new customers Customers print postage from directly within Microsoft Word Many small businesses use Microsoft Word to print addresses on their envelopes Can print addresses and postage in a 1-step process Print from Word s Envelopes and Labels for single envelopes Print from Word s Mail Merge for multiple envelopes 5

Print Postage via Amazon Integration Stamps.com has an integration partnership with Amazon s Merchant Marketplace Merchants who sell in Amazon s Marketplace and ship the packages themselves can print postage for the packages via Stamps.com's integration or Amazon's in-house solution Merchants utilizing Stamps.com's integration solution print shipping labels as part of a seamless integrated process flow Merchants can opt for a transaction based pricing model or become Stamps.com subscription customers 6

Customer Benefits Customer benefits based on their previous mail solution ~80% of customers previously used retail post office (time savings) ~20% of customers previously used traditional meters (cost savings) Customers save time so they can focus on growing their business Mail or ship from home or office Avoid trips to the post office Available 24 hours a day x 7 days a week Customers can save money by reducing their postage spend Discounted postal rates (domestic and international packages for First Class, Priority and Express Mail classes) Discounted package tracking (Delivery and Signature Confirmation) Discounted package insurance compared to USPS Avoid costly returned mail with address verification Avoid wasted postage by calculating exact postage amount Access to cost effective mail classes (media mail, parcel post, etc.) 7

Customer Benefits Advanced Reporting Technology based postage solution provides sophisticated reporting Customers gain greater visibility into postage activity vs. traditional solutions Customers can better track, control and reduce postage expenditures Enhanced Productivity and Image Produces more professional looking mail Two-step process becomes one-step by printing address & postage together Optimize Shipping Operations Customers utilize hidden postage feature to reduce customer contacts Online package tracking capabilities with e-mail notifications Adding integrated package insurance eliminates separate operational process Customers can aggregate orders and print all shipping labels at one time in an automated batch process Customers can import order data into our software from across multiple marketplaces seamlessly 8

Industry Overview Large market opportunity 1 ~$46B U.S. Postage Market ~8M Small Businesses + 14M Home Businesses Growing e-commerce shipping segment Significant barriers to entry exist Long and complex U.S. Postal Service regulatory approval process o ~2 ½ years for original approval o Multiple years for NetStamps approval Last PC Postage vendor approved by the USPS was in the year 2000 Stamps.com has a very strong patent portfolio (over 150 patents issued) Stamps.com is the category leader 3 approved PC Postage vendors (Stamps, Pitney Bowes, Endicia.com) Stamps.com has the largest number of PC Postage customers 2 1 Source: International Data Corporation Reports and USPS 2012 Annual Report (excludes Standard Mail, Periodicals, PO Box Rent,Money Orders) 2 Source: USPS PC Postage Data 10

Service Offerings The majority of subscription customers pay monthly service fees from $15.99 $39.99 depending on the features of the particular service: Pro Basic mailing and shipping features with single-user capability Premier Pro features plus multi-user functionality, automated Certified Mail forms, and additional reference codes Professional Shipper Targeted to higher volume shippers (e.g. fulfillment houses, e-commerce merchants, retailers, etc.) Features direct integration into customers order databases, faster label printing and integrations with shipping management systems Enterprise Targeted to organizations with multiple geographic locations Features enhanced reporting and administrative controls 11

Marketing Channels In our Core PC Postage Business 1, Stamps.com utilizes a diversified set of marketing programs to acquire customers: Affiliate program Direct mail Direct sales Online media Shipping integrations (Online marketplaces, Shopping carts, Shipping mgmt.) Stamps.com web site and referral program Strategic partnerships (Avery, Microsoft, HP, USPS) Telemarketing Traditional media In our Non-Core PC Postage Business 2, Stamps.com utilizes a consumer oriented online program 3 to acquire customers: Online program offers an incremental promotion to try our service Made a strategic decision in 2007 to de-emphasize this part of the business Significant reduction in marketing spend in this channel (2007-2012) 1 Core PC Postage is the portion of our PC Postage business targeted to small businesses, enterprises and high volume shippers 2 Non-Core PC Postage is the portion of our PC Postage business targeted more to consumers 3 The consumer oriented online program, also referred to as the "Enhanced Promotion Channel," includes partners that advertise our service on the Internet in which the partner typically offers an incremental promotion (in addition to any promotion offered by us) in ordertoget the customer to try our service. 12

2013 PC Postage Plan Increase our Small Business marketing investment Increase small business customer acquisition spend by 5-15% in 2013 Optimize our business model and improve our customer experience Optimize our website, registration process and post-registration customer interactions to improve the customer experience Improve software usability by adding new product features including new shipping capabilities and various other features to make mailing easier Increase investment in our technology platform and data centers for optimal reliability and scalability of our solutions Enhance our distributed enterprise solution marketing efforts Continue to build our sales pipeline of new accounts and increase penetration of our existing accounts Continue to add new features to our software Enhance our high volume shipper solution and marketing efforts Scale our high volume shipping sales and marketing efforts Continue to add new features to our software and add new software integration partners 13

PhotoStamps Offering PhotoStamps allows customers to order valid US postage with customized photos or images from www.photostamps.com (separate offering from PC Postage) Customer uploads photo or graphic and customizes look & feel Customer places order online Stamps.com approves the image and prints the PhotoStamps sheets Customer receives PhotoStamps sheets in the mail within a few days Pricing is ~$5 to $18 per sheet plus the cost of postage 1 1 Actual pricing depends on the number of sheets ordered and postage value per sheet (high volume discounts are available) 15

Financial Overview The PC Postage business has a recurring revenue based model Service fees are charged on a recurring monthly subscription basis Supplies store and package insurance purchases are recurring with usage Stamps.com has an attractive financial model High gross margins (PC Postage = 80%) with leverageable fixed costs Low working capital and capital expenditure requirements Results in very strong free cash flow 1 ($31.4M for the trailing 4 qtrs., $142M since Q2-04) Stamps.com has a history of returning excess cash to shareholders Stamps.com has returned $291M to shareholders since 2002 ($107M via special dividends and $184M via share repurchases with $32M in 2012) Stamps.com has a very strong balance sheet $57M in cash and investments and no debt as of March 31, 2013 ~$205M Federal and ~$100M State NOL s ($70M Def Tax Asset 2 ) The PC Postage business generates very attractive expected returns Customer lifetime values in excess of two times the cost to acquire the customer 1 Free Cash Flow = Pro-Forma Net Inc Net Rental Income + Business D&A Business Capital Expenditures; Company turned FCF positive in Q2-04 2 ~$70M Gross DTA with a (~$40M) valuation allowance (reserve) resulting in ~$30M Net DTA on the balance sheet 17

Revenue and Adjusted EBITDA Strong revenue growth combined with margin expansion has led to a significant increase in our adjusted EBITDA over the past three years $120 Total Revenue ($ Millions) $115.7 $30 Adjusted EBITDA 1 ($ Millions) $29.8 $110 $100 $101.6 $25 $20 $21.5 $90 $85.5 $15 $13.8 $80 $10 $70 2010 2011 2012 $5 2010 2011 2012 YoY YoY 4% 19% 14% Growth 32% 55% 38% Growth 1 Adjusted EBITDA is pro forma operating income + Business D&A (excludes tenant related D&A) 18

Annual Revenue Breakdown $110 $100 $90 $80 $70 $60 $50 $53.7 Revenue trends reflect a strategic change in 2006 to shift investment from PhotoStamps and Enhanced Promotion to our Core PC Postage Business Core PC Postage Revenue 1 ($ Millions) $57.5 $63.9 $67.4 $73.8 $90.2 $107.0 2006 2007 2008 2009 2010 2011 2012 $35 $30 $25 $20 $15 $10 $5 $0 $29.1 $10.3 PhotoStamps 2 and Enhanced Promotion Revenue 3 ($ Millions) $27.4 $9.5 $21.0 $9.1 $18.8 $17.9 $11.9 $14.7 $6.3 $8.5 PhotoStamps Retail Breakage Revenue Enhanced Promotion Revenue PhotoStamps Revenue $11.7 $4.5 $7.2 $11.4 $2.2 $8.7 $3.2 $3.0 $6.1 $5.7 2006 2007 2008 2009 2010 2011 2012 YoY Growth N/A 7% 11% 5% 10% 22% 19% YoY Change N/A (6%) (23%) (30%) (21%) (2%) / (21%) 2 (24%) / (6%) 2 1 Core PC Postage revenue includes service fee, store and insurance revenue from the small business, enterprise and high volumeshipping customer segments. 2 Total Enhanced Promotion and PhotoStamps revenue in 2011 included $2.2M of one-time PhotoStamps retail breakage revenue in Q2-11. Excluding Q2-11 retail breakage revenue, total Enhanced Promotion and PhotoStamps revenue was $9.3M (-21%) 3 Non-core PC Postage revenue from service fee, store and insurance revenue for customers originally acquired through the enhanced promotion channel 19

Quarterly Revenue Trends Total Company revenue growth has been driven by accelerating Core PC Postage revenue growth $34 $32 $30 $28 $26 $24 $22.7 $22.8 $22 $21.2 $20.7 $20 $18 Total Revenue 1 ($ Millions) $26.6 (1) $24.5 $24.9 $27.2 $28.3$28.2 $30.1 $29.1 $32.1 $32 $30 $28 $26 $24 $22 $20 $18 $16 $19.3 $18.2 $18.2 Core PC Postage Revenue 2 $20.6 ($ Millions) $22.3 $22.7 $24.5 $27.2 $27.4 $26.2 $26.2 $30.3 YoY Growth Total Company Revenue (x PS Breakage) 5% 2% 5% 9% 26% (1) / 15% PS Breakage 20% 20% 24% 6%/ 15% (1) 17% 10% 13% 1 Q2-11 total revenue included $2.2M of one-time PhotoStamps retail breakage revenue; Q2-11 revenue was $26.6M (+26%) including the breakage and was $24.5M (+15% YoY) excluding the breakage. YoY Growth Core PC Postage Revenue 9% 8% 11% 14% 23% 25% 27% 27% 18% 20% 12% 16% 2 Core PC Postage revenue includes service fee, store and insurance revenue from the small business, enterprise and high volume shipping customer segments. 20

PC Postage Customer Metrics Core PC Postage revenue growth has been driven by both increasing paid customers and increasing ARPU trends 480 460 Paid Customers 1 (Core PC Postage Business) (Thousands) 465 Average Monthly Revenue per Paid Customer (ARPU) 2 (Core PC Postage Business) 440 420 400 380 360 340 320 338 334 340 360 368 374 385 413 418 419 435 $22 $21 $20 $19 $18 $17.9 $18.1 $18.9 $19.1 $20.2 $20.2 $21.2$21.2 $20.9 $21.6 $21.0 $21.7 300 $17 YoY Growth YoY 7% 6% 6% 7% 9% 12% 13% 15% 14% 12% 13% 13% 2% 2% 4% 6% 13% 12% 12% 11% 3% 7% (1%) 3% Growth 1 Unique customers successfully billed at least once during the quarter excluding customers acquired through the enhanced promotional channel 2 Calculated as [ (Quarterly Service Fee Revenue + Store Revenue + Insurance Revenue) / (Current Quarter Paid Customers)] / 3 Months excluding customers acquired through the enhanced promotion channel 21

PC Postage Customer Metrics New customers acquired is showing year-over-year growth while CPA s remain in a consistent range 100 80 Gross New Customers Acquired 1 (Small Business Customers) (Thousands) 66.9 66.9 62.9 63.9 82.7 85.7 70.5 69.1 88.6 91.5 $140 $120 $128 $123 $109 Cost per Gross New Customer Acquired 2 (Small Business Customers) $124 $119 $115 $108 $110 $125 $115 $104 $106 60 $100 52.4 49.4 40 $80 YoY Growth (2%) (6%) 1% 4% 20% 29% 24% 28% 12% 8% 7% 7% YoY Change 2% 8% 2% 3% (3%) (4%) (1%) (5%) 1% (3%) (4%) (3%) 1 Gross new registered small business customers 2 PC Postage small business sales and marketing expense (excluding 123R expenses) plus promotional expenses / gross new small business customers acquired 22

PC Postage Customer Metrics Quarterly churn rates remain flat-to-down year-over-year with average annual churn rates returning to pre-recession levels 4.0% 3.5% Quarterly Paid Customer Churn Rate 1 (Core PC Postage Business) 3.6% 3.6% 3.4% 3.5% 3.3% 3.4% 3.7% 3.5% 4.0% 3.8% 3.6% Annual Average Paid Customer Churn Rate 1 (Core PC Postage Business) 3.6% 3.9% 3.5% 3.0% 3.0% 3.0% 3.1% 3.0% 3.4% 3.3% 3.3% 3.3% 3.2% 2.5% 3.0% 2007 2008 2009 2010 2011 2012 YoY Change YoY (0.8%)(0.2%)(0.3%)(0.4%)(0.1%)(0.3%) 0.0% 0.0% 0.2% 0.2% (0.3%) 0.0% (0.5%) 0.3% 0.3% (0.4%) (0.2%) 0.0% Change 1 Calculated as [ (Lost Paid Customers) / (Prior Quarter Paid Customers + Current Quarter New Paid Customers) ] / 3 months 23

NFIB Optimism Index 1 Our Core PC Postage business metrics including acquisition and churn have been very strong despite a challenging small business economic environment Average Annual Optimism Index Monthly Optimism Index 105.0 95 94.5 94.4 100.0 95.0 90.0 101.6 98.9 96.7 89.8 Recessionary Level 86.7 89.9 91.4 92.2 94 93 92 91 90 89 88 92.5 91.4 91.2 92.9 92.8 93.1 87.5 88.0 Recessionary Level 88.9 90.8 89.5 85.0 87 86 80.0 2005 2006 2007 2008 2009 2010 2011 2012 85 1 The NFIB (National Federation of Independent Business) is one of the leading sources of information about small business in the United States. They conduct monthly surveys from NFIB s members to compile its Small Business Economic Trends report summarized through the smallbusiness optimism index. Source: Small Business Economic Trends report (Apr 2013) NFIB Research Foundation 24

PC Postage Customer Metrics Postage printed shows strong and accelerating growth as we add SOHO, Enterprise and High Volume Shipping customers $500 Quarterly Postage Printed 1 ($ Millions) $1,200 Annual Postage Printed 1 ($ Millions) $1,148 $400 $401 $378 $1,000 $300 $200 $100 $99 $108 $139 $145 $152 $165 $211 $222 $233 $293 $800 $600 $400 $272 $319 $354 $447 $672 $0 $200 2007 2008 2009 2010 2011 2012 YoY Growth 18% 20% 26% 39% 44% 53% 52% 52% 53% 53% 78% 71% YoY Growth 19% 17% 11% 26% 50% 71% 1 Total postage printed by all customers 25

Non-GAAP Operating Income Non-GAAP Operating Income has accelerated as a result of strong Core PC Postage growth and operating leverage $10.0 $9.0 $8.0 $7.0 $6.0 $5.0 $4.0 $3.0 $2.7 $3.4 Quarterly Non-GAAP Operating $4.1 $3.4 $6.4 $4.7 Income 1,2 ($ Millions) $5.4 $5.4 $5.7 $6.8 $8.4 $7.6 $9.0 $35.00 $30.00 $25.00 $20.00 $15.00 $10.00 $9.3 Annual Non-GAAP Operating Income 1,2 $13.0 ($ Millions) $20.6 $28.6 $2.0 $5.00 $1.0 $0.00 2009 2010 2011 2012 Non-GAAP Op Inc (x PS Breakage) PS Breakage Non-GAAP Op Inc (x PS Breakage) YoY Growth Op Margin 30% 34% 49% 22% 137%/ 62% 31% 70% 6%/ YoY 54% 42% 56% 0% 40% 59% 38% 74% (2) 44% (2) Growth 13% 16% 18% 15% 24%/ Op 22% 20% 20% 24% 29% 25% 28% 11% 15% 20% 25% 18% (2) Margin 1 Excludes stock-based compensation, asset write-offs, litigation charges and relocation expenses (see the Company s 8-K filings for reconciliations to GAAP) 2 Q2-11 and FY-11 included $1.7M of one-time PhotoStamps retail breakage income; excluding the retail breakage, Q2-11 Non-GAAP operating income was $4.7M (+74% YoY) and FY-11 Non-GAAP operating income was $18.9M (+46%) 26

Non-GAAP EPS Non-GAAP EPS has accelerated with our strong operating income results and our share repurchase activities $0.60 $0.40 $0.20 $0.24 $0.20 Quarterly Non-GAAP EPS 1,2 ($ Millions) $0.45 $0.33 $0.30 $0.24 $0.37 $0.35 $0.34 $0.40 $0.50 $0.47 $0.57 $2.00 $1.50 $1.00 $0.50 $0.62 Annual Non-GAAP EPS 1,2 $0.93 $1.40 $1.70 $0.00 $0.00 2009 2010 2011 2012 PF EPS (x PS Breakage) PS Breakage Non-GAAP EPS YoY Growth 43% 44% 69% 27% 124%/ 65% (2) 52% 14% 41% (11%)/ 21% (2) 35% 36% 68% YoY Growth 49% 22% 54% 42% 1 Excludes stock-based compensation, non-cash deferred tax benefit, asset write-off, litigation charges and relocation expenses (see the Company s 8-K filings for reconciliations to GAAP) 2 Q2-11 and FY11 included $1.7M of one-time PhotoStamps retail breakage income; excluding the retail breakage, Q2-11 Non-GAAP EPS was $0.33 (+65% YoY) and FY-11 Non-GAAP EPS was $1.29 (+38%) 27

Key Investment Takeaways Large market opportunity (~$46B US postage, 22M SOHOs) Significant barriers to entry (USPS approval, Intellectual Property) Superior customer benefits at prices up to 60% less than meters Category leader in PC Postage and Customized Postage Attractive expected return on PC Postage marketing spend PC Postage revenue growth with high gross margins Attractive strategic opportunities with enterprise and shipping Strong cash flow and balance sheet Demonstrated history of returning capital to shareholders 28

Investor Metrics 30

Print NetStamps Print your own stamps Buy blank label stock (NetStamps) from Stamps.com Use Stamps.com s software to print postage on the blank labels Increased flexibility Use for any stamp value Use for any class of postage No expiration date Not tied to an address Choose from a variety of images Standard labels Themed labels Customized labels 34

Print on Envelopes Print postage on envelopes Print postage directly on envelopes or onto labels applied to the envelopes Supports a wide variety of envelopes including odd-shaped and flats Ideal for business and high volume mailings Typically used when a customer already needs to print the addresses Our software automatically verifies and corrects destination addresses Our software integrates with most contact management systems (e.g. Office, ACT) avoiding the need to maintain two different address books Customers like the professional looking appearance of the envelope 35

Print Shipping Labels Print postage labels for use with packages Print all-in-one shipping labels on either plain printer paper or on adhesive labels Supports all classes of packages (e.g. Priority Mail, Express Mail, Media Mail, Parcel Post) Electronic solution offers unique benefits Ability to hide postage amount E-mail tracking notifications Avoid 1lb package security restrictions Receive discounts on postal rates 1 Customers receive discounted rates on domestic and international packages for First Class, Priority and Express Mail classes Higher package volume customers can qualify for even larger postal rate discounts 1 All PC Postage customers automatically receive discounts of up to 63% discount on Express Mail, up to 20% on Priority Mail, up to 10% on Express Mail International, up to 9% on Priority Mail International, up to 18% on First Class Package Service, and up to 10% on FirstClass Package International Service. In addition, Commercial Plus customers who meet certain higher volume requirements receive discountsofup to 63% on Express Mail, up to 35% on Priority Mail, up to 16% on Express Mail International and up to 16% on Priority Mail International.All PC Postage customer also receive free delivery confirmation for Priority Mail and First Class Package Service. 36

Stamps.com vs. Postage Meter Stamps.com is up to 60% less than the total cost of an entry-level postage meter Category Entry Level Meter Stamps.com Max. Print Speed 18 letters/minute At speed of printer Monthly Fee (rental plus 5 lbs. scale) $24.99/month 1 (1-Year Auto Renew Lease) $15.99 / month (No Lease) Proprietary Ink & Labels Estimated Monthly Total Cost of Ownership $8 to $13 2 None ~$33 to $38 $16 1 Entry level small business meter with an integrated scale 2 Assumes monthly prints 60 letters and 20 packages; proprietary ink fees of $.06 -$.12 per print; proprietary label fees of $.14 per label (source: Competitor pricing and STMP estimates). 37

PhotoStamps Overview The customized postage program is regulated by the USPS Only approved PC Postage vendors can provide the postage for customized postage products 3 approved vendors: Stamps, Endicia, Pitney Bowes (via Zazzle) PhotoStamps is marketed to consumer and business segments Consumers typically use PhotoStamps for special occasions and as gifts Business orders in higher volumes for branding and marketing purposes Continued focus on profitability in the PhotoStamps business Made strategic decision in 2007 to shift investment from PhotoStamps to PC Postage which has resulted in a smaller but more profitable business Pursuing PhotoStamps in a modest way during the challenging economy and continue to look for ways to optimize the business Marketing channels focus on cost-effective, high ROI channels including online and partnerships (Snapfish) Majority of corporate focus still on the PC Postage business 38