I would personally advise against running the newsletter from your server directly as their can be issues with delivery rates and mails being flagged as spam.
Instead http://www.mailchimp.com have a free user plan that would be suitable for you; as they are a premium service provider you can feel more confident that your email delivery rates are going to be higher than the aforementioned.
There is also a MailChimp plugin for WordPress that helps you integrate with their service.
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