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It will send out to 99 subscribers and the site's email address. I think this should count as one mail. With more than 800 subscribers the present code should be able to send the message to all subscribers in 9 emails. If servage counts the inividual addressees as separate emails, then there is a problem I cannot tell you how to solve.
If you set it to 20, then there will be more than 40 emails sent with the newsletter.