USPS UPDATE NPF MAY 2011

1. USPS UPDATENPF MAY 2011

2. The USPS is the original Social Network Delivering in New Ways™

3. PERMITS • Permits to be moved to nationwide customer accounts within the next year….PMG goal is to make it easier for businesses to use the Postal System • Permits would be based on customer IDs where items could be mailed anywhere through a single customer ID, using the IMb

4. SOFTWARE RELEASES • Donahoe announced that the Postal Service will, beginning in January 2012, there will only be two major software releases per year which will cover issues like postage and electronic documentation. • Two new electronic programs – eDropShip and electronic payment will replace cumbersome paper acceptance and billing

5. TRACK AND TRACE • Beginning this fall, the USPS will offer free track and trace services for all commercial parcels that have a full-service IMb, initially starting with Lightweight Parcel Select parcels (fomerly called Standard Mail parcels) • By October 1, 2011, Jim Cochran VP of Product Information with the USPS says that they will have tracking that is every bit as good as anybody else in the marketplace.

6. TRACK AND TRACE • The USPS is investing in scanning technology across the network including OCR technology, passive scanning systems and more than 1,500 ring scanners for processing plants that cannot use full systems so that “nothing will leave a processing plant without a scan”

7. DELIVERY CONFIRMATION • Delivery Confirmation Service is going to be phased out, to become part of a new USPS track and trace service offering visibility across the mail process.

8. INTELLIGENT MAIL BARCODE • There is still no date for the deadline for customers to use the IMb for automation discounts • Instead of setting deadlines for customers to use the IMb, the USPS will seek to entice them to use Imb.

9. MOBILE BARCODE PROMOTION • Intended to build awareness of mobile technology and demostrate to mailers how mobile barcodes can increase the value of mail. • The promotion provides businesses with an upfront 3% discount on Standard and First-Class mail letters and flats that include a two-dimensional barcode that can be read or scanned by a smart phone. • Promotion runs July 1 2011 – August 31, 2011 • No application or advance registration • Periodical mail is NOT eligible for this promotion

11. MOBILE BARCODE PROMOTION • To participate you must submit qualifying First-Class or Standard mail letters/flats electronically using a permit imprint payment method to the BME for acceptance within the specified promotion period and meet the following requirements: • All mailpieces in the mailing must included a mobile two-dimension barcode on the face of the mailpiece or within the mailpiece • The mobile barcode must be used for marketing purposes and must be relevant to the content of the mailpiece

12. MOBILE BARCODE PROMOTION • The objective is that the mailpieces are to initiate interaction with consumers via mobile smart phones to market, promote or educate • Standard or First-Class letters or flats must be sent with postage paid entirely using a permit and submitted electronically using Postal Wizard, Mail.dat, or mail.xml to qualify (mailings using Postal Wizard claiming Imb postage prices cannot exceed 9,999 pieces) • The Mobile Barcode promotion must be affirmatively claimed on the “incentive claimed” line in the certification section of the postage statement.

13. MOBILE BARCODE PROMOTION • The mobile barcode discount is calculated in PostalOne and applied to the mailing statement at the time of mailing. The 3% mobile barcode discount is deducted from the total postage amount that is paid at the time of mailing. • The Postal Service is verifying the presence of mobile barcodes on mailing qualifying for the discount in two ways: • At time of mail acceptance the clerk will verify that a 2D is present on or within the mailpiece for Standard Mail and on the mailpiece for First-Class mail that has a barcode on the outside of the piece. • For First-Class mail, the mailer must provide a sample of the mailpiece showing the placement of the 2D to the clerk at the time of mail acceptance.

14. MOBILE BARCODE PROMOTION • During the promotional period, and after the period has ended, the USPS will conduct a random sample of mailpieces that qualified for the discount. • All customers who received a discount must retain an electronic or hard copy sample of all mailpieces until October 31, 2011. • If requested by the USPS sample must be forwarded to the Mobile Barcode Promotion Program Office. One sample must be retained for each individual mailing that qualifies for the discount. • All discounts MUST be claimed at time of acceptance and payment. There is no process to claim the rebate after the mailpieces have been accepted by the USPS • There is no limit on the number of times a mailer may reiceve a discount

15. EVERY DOOR DIRECT MAIL • Began 4/1/11 and the USPS has already delivered $10 million worth of flats or irregular parcels • EDDM enables you to extend customer reach via saturation mail without the need for mailing lists, permits, and other associated fees. • With EDDM you create a saturation mailing without applying individual names and addresses to each mailpiece.

16. EVERY DOOR DIRECT MAIL • EDDM Retail enables small mailers to target local neighborhoods or nationwide. For fewer than 5,000 pieces you can deliver the mailing right to the local post office. • Mailer must have a CRID • Mailing includes Standard Mail Flats Only • Each mailpiece must be equal or less than 3.3 oz • Each mailpiece must display special indicia or permit • Minimum of 200 mailpieces but not to exceed 5000 in one day • Mailing must be accompanied by PS Form 3587-1 • Postage price of 14.2 cents • Postage is paid in full at retail unit

17. EVERY DOOR DIRECT MAIL • EDDM saturation mailings are prepared for processing at a BMEU • Customer must have an active USPS Standard Permit number • Mailing includes Standard Mail flats or irregular parcels • Mailing must be accompanied by PS Form 3602R • Mailings entered at the BMEU and dropped at local post office must be accompanied by PS Form 8125 • Postage prices may vary

18. FOLDED SELF-MAILERS • It is estimated that letter-size booklets and folded self- mailers comprise 20-30% of total letters, and this number is growing • By definition: A folded self-mailer is formed of panels created when a single or multiple unbound sheets of paper are folded together and sealed to form a letter-size mailpiece. • Folded self-mailers do not behave like enveloped pieces • Tend to jam in equipment • Can become significantly damaged • Lower processing thruput

19. FOLDED SELF-MAILERS • USPS has conducted testing with industry to address situation • 13 mailing associations participated in study • Over 200 different samples tested • Mailers observed the tests

20. FOLDED SELF-MAILERS • PROPOSED BASIC DESIGN ELEMENTS • Dimension • Height 3.5” to 6” maximum • Length 5” to 10.5” maximum • Weight – up to 3 oz • Paper cover basis weight – book grade (text, offset) • Basic Folded Self-Mailer Design • 70lb minimum for 1 oz mailpiece: 80lb over 1 oz up to 3 oz

21. FOLDED SELF-MAILERS • PROPOSED BASIC DESIGN ELEMENTS • Optional elements added • Basis weight ranges from 80 lb to 120 lb • Basis weight increases when piece weight is over 1 oz • Newsprint paper allowed: quarter fold design only • 55 lb minimum paper and three tabs required

22. FOLDED SELF-MAILERS

23. FOLDED SELF-MAILERS

24. FOLDED SELF-MAILERS

25. FOLDED SELF-MAILERS

26. FOLDED SELF-MAILERS

27. FOLDED SELF-MAILERS

28. 5 DAY DELIVERY • No Saturday street address delivery except Express Mail • No scheduled weekend box collections except Express Mail from Post Offices and dedicated collection boxes • Continue Saturday Post Office Services • Post Offices with current Saturday hours remain open • Deliver all mail to PO Boxes

29. 5 DAY DELIVERY • Continue 7 day a week availability of remittance mail that is PO Box addressed • Continue Saturday acceptance of bulk mail • PO’s BMEU and detached mail units that are currently open Saturday and Sunday will remain open and accept mail

30. 5 DAY DELIVERY • Continue to process incoming mail at plants • MONDAY – SUNDAY TO SUPPORT DELIVERY • Street addresses Monday-Friday • PO Boxes Monday – Saturday • Remittance mail Monday – Sunday • Reduce mail transportation between plants and Post Offices on Saturday

31. 5 DAY DELIVERY • Bulk Mail Entry Unit – Post Office • Contact local unit for operational hours for mail acceptance • Track and confirm messaging – Saturday • PO BOX addressed packages will be available for pick up on Saturday • Street addressed packages will be schedule for delivery on Monday

32. 5 DAY DELIVERY • Timely delivery of mail on Monday or Tuesday after three-day holiday weekend • Standard operation procedures in place to guide management in these situations • Additional staffing to be scheduled to handle anticipated heavier workload and provide assistance where necessary • Deliver parcels on Saturday the prior 2-3 weeks before Christmas, if needed

33. PO BOXES • The USPS will allow “signature on file” for PO Box customers for Signature Requested mail • Electronic scanning and notification to mobile app of mail • Longer access hours

34. EXPANDED SERVICES AND LOCATIONS • USPS exploring the use of Paypal for paying for stamps and shipping • USPS.COM website to be updated • two sections: one for retail/one for mailers • Stamps will be available at over 63,000 locations • Expanded greeting card locations in post offices • Post Offices will begin selling gift cards • USPS to launch a multi-media advertising campaign to promote the value of mail beginning in September

35. THANK YOU!