Move Update Mailers’ Technical Advisory Committee August 12, 2009 Maura Robinson VP Pricing

2 Overview  Good addresses are good business  Actionable data drives results  Tough economic times  All costs are under scrutiny  Need the right solution to ensure good addresses Move Update

3 62% 21% First-Class Mail Error Rate > Threshold 5.4% April 2009 Error Rate > Threshold 3.8% June % 0.2% 1.5% 39% 27% 18% 11% 3.2% 0% 20% 40% 0%0 - 10% % % % % % % 1.0% 0.6% 0.4% 38% 27% 24% 7% 1.8% 0% 20% 40% 0% % % % % % % % Error Rate > Tolerance 5.4% Error Rate > Tolerance 3.8% April 2009July 2009 Move Update

4 Standard Mail April 2009 Error Rate > Threshold 5.8% Error Rate > Threshold 5.0% June % 0.9% 21% 8% 62% 3% 1.5% 0% 20% 40% 60% 0% % % % % % % % 1.0% 0.5% 3.1% 2% 70% 8% 15% 0% 20% 40% 60% 0% % % % % % % % Error Rate > Tolerance 6.3% Error Rate > Tolerance 5.1% Does not include “or Current Resident” mailings Does not include “or Current Resident” mailings April 2009July 2009 Move Update

5  Size of assessment  Assessment does not vary with address quality  Context  Economic uncertainty  New Standard Mail requirement  PBV can evaluate Move Update performance  Collaborative approach working with MTAC & industry representatives  Delay PBV use at acceptance until January 2010 Concerns Move Update

6  Reasonable assessment  Incentives for high-quality addresses  Reflect level of address quality  Extremely poor performance  Assessment approaches Single-Piece for First-Class Mail  Comparable assessment for Standard Mail Goals Move Update

7  Only failed pieces above tolerance pay assessment  If 40% of COAs not-updated → Assessment applied to 10% (=40% - 30%) of mailing  Assessment = $0.07 per piece at acceptance  Both First-Class Mail and Standard Mail [ Failed COAS Total COAs - 30 % ] * 7 ¢ * (pieces in mailing) Move-Update Move Update

8 New $0 $2,000 $4,000 $6,000 $8,000 $10,000 0%20%40%60%80%100% Current $0 $2,000 $4,000 $6,000 $8,000 $10,000 0%20%40%60%80%100% Current vs. New First-Class Mail Standard Mail First-Class Mail & Standard Mail Move Update

9 Summary  Incentive to improve address quality  Reasonable initial tolerances  30% tolerance before any assessment  5 or fewer failed COAs: no assessment  Lower assessments for better address quality  Modified assessment for multi-client mailings Move Update

10 Current New Mailing Size 100, ,000 Postage, 5-D Auto ($0.335) $33,500 $33,500 Assessment $0.105 (= ) $0.07 for each piece in mailing for failed percentage above tolerance Assessment if 40% of COAs not-updated Pieces paying assessment 100,000 (100%) 10,000 (10%=40-30) Assessment$10,500 $700 Percent of postage 31% 2.1% Assessment if 80% of COAs not-updated Pieces paying assessment 100,000 (100%) 50,000 (50%=80-30) Assessment$10,500 $3,500 Percent of postage 31 % 10.2% First-Class Mail Move Update

11 Current New Mailing Size 100, ,000 Postage, 5-D Auto ($0.233) $23,300 $23,300 Assessment $0.070 $0.070 for each piece in mailing for failed percentage above tolerance Assessment if 40% of COAs not-updated Pieces paying assessment 100,000 (100%) 10,000 (10%=40-30) Assessment $7,000 $700 Percent of postage 30% 3.0% Assessment if 80% of COAs not-updated Pieces paying assessment 100,000 (100%) 50,000 (50%=80-30) Assessment$7,000 $3,500 Percent of postage 30.0% 15.0% Standard Mail Move Update