Intelligent Mail Update

1. Intelligent Mail Update

2. Agenda • Program Update • Move Update • Requirements Reminders • Issues • Release 3 (what’s coming) • Full Service Verification Update • Business Mail Entry Update 2

3. Program Update • Program Highlights • $1.4 Billion in revenue for Full Service • 5 Billion Full Service pieces processed • January Price Change (1/4/10) • Successfully implemented January Price Change • Release 3 (3/14/10) • Testing in Progress • Release 4 (TBD) • SOX Lockdown [April 1, 2010 to September 30, 2010] • Minimal Changes if any after Release 3 until January 2011

4. On-Boarding Trend 4

5. On-Boarding Trend 5

6. Full Service Postage Statements 6

7. Full Service Postage Statements 7

8. Full Service Postage Statements 8

9. Move Update

10. Move Update Looking Good 10

11. Move Update Looking Good 11

12. Move Update Compliance and USPIS Investigations • Two separate and distinct issues • Move Update Compliance applies to individual mailings • Verification /Acceptance based upon Performance Based Verification (PBV) • MERLIN captures image; data analysis at AMS Memphis • USPIS Investigations focus on systemic issues • Basis of investigation from a variety of sources • Various sources of data to assist investigation 12

13. Requirements Reminder

14. Requirement Reminder • Barcode readability tolerance is 90% for POSTNET & Intelligent Mail® Barcodes on March 15, 2010 • May 2011 – Only Intelligent Mail® Barcodes qualify for automation discounts

16. Issues CFS Software Update impact upon ACS Data Impacted ACS information delivery from Jan. 13 – Feb. 1 Mailers may have received Traditional ACS or Form 3579 Recovered data and adjusting billing accordingly Issues List Tray Barcode (Default) Placeholder Large File Performance Performance Impacts for Large Files Intelligent Mail Range (IMR) Records 16

17. Performance 17

18. IMR Range Records Large volume of single-piece or small range IMRs Impacts Full Service validation processing Impacts processing of Full Service ACS information Interim solution – Provision Full Service data via NCSC ACS delivery processes March Release Validation Removal Formed subgroup under MTAC 122 to explore options 18

19. Release 3 Statement of Ownership BMC to NDC Mail.dat New Mail.dat File Processing Client Automatic update for batch users Mail.dat - Receipt Process Pending Periodicals weighing more than 16 ozs Full Service Bound Printed Matter Correct Mailing Agent Display Detached Address Labels Validations 19

20. Release 3 Mail.XML Mail.XML 8.0B Changes New Mail.XML message support for MLOCR Customer Mail Report Summary ZIP Destination Report Update container information Add, change, cancel container (logical or physical) data for Mail.XML or Mail.dat based eDoc Improved validation error reporting Ability for owners and preparers to get appointment closeout data FAST support for CRID based identification/authorization 20

21. Full Service Verification Update Feedback on Full Service Mailings via Microstrategy Reports Key Compliance Issues: Barcode Uniqueness CSA Verification Mailer ID Accuracy Service Type Code Accuracy Appointment Accuracy Mail Owner/Mail Preparer Accuracy 21

22. Full Service Verification Update Provisioning Full Service Compliance Issue to Mailers – Microstrategy Reports Improved Performance on Reports (limiting detail data) Provisioning Detailed Data Review Reports with Mailers Establish Compliance Quality Bar Analyze data for Threshold Determination Establish Non-Compliance Remediation Update Verification Processes 22

23. Business Mail Entry Compliance Impacts all Areas of Mail Acceptance – BMEU, DMU, and Facility Induction Strengthen Business Process Financial Controls Validate Existing Business Processes Communicate Process Compliance Standards Monitor and Improve 23

24. Business Mail Entry Compliance Key Financial Controls Revenue Reporting Controls Postage Statement Completeness Drop Shipment Documentation Completeness Ensure Acceptance Process Compliance Ensure Mail Entry (Induction) Compliance Origin Mail Induction Destination Mail Induction (PVDS) Revenue Completeness - Is everything accounted for? 24

25. Business Mail Entry Compliance Controls Compliance Postage Statements Mailer and USPS sections Completed and Accurate Accounts Active and Funded Statements Processed Timely Adjustments Processed Timely and Accurate Drop Shipment Documentation Completeness Mailer and USPS sections Completed Accurately Verifications Conducted as Required 25

26. Business Mail Entry Compliance 26

27. Business Mail Entry Compliance 27

28. Streamlining Hard Copy Postage Statements • Starting March 15, 2010, the Postal Service will no longer fill out the USPS® section of a hard copy postage statement nor round-stamp the document • Mailers encouraged to go online to view their mailing activities and retrieve processed postage statements. • Upon request, a customer may obtain a hard copy receipt of the postage statement or Statement of Mailing/ Weighing and Dispatch Certificate, PS Form 3607, after acceptance and verification are completed.

29. Streamlining Hard Copy Postage Statements • Federal Register Proposal Closes Feb 25 • 13 comments received to date • Mailers and service providers • It’s about time! • Fabulous idea • Our clients prefer the round stamp • How do we access our client’s information? • Implementing March 15