Do blogs send email?

Hi –
I’m building a website for a customer and he needs to be able to post about a 1 page blurb on his website once a week, include a link to some real estate in the blurb, then email the blurb to 500 customers.

I’ve heard good things about WordPress, but I don’t see that it can send out emails. I also downloaded a copy tonight and still don’t see anything about emails.

Do I need something other than blog software? Is there such a thing as newsletter software which might include the email sending?

Thanks,
Steve