1 Shaping a More Efficient Future Pricing Change Effective Monday, May 14

2 Shaping a More Efficient Future New Prices  Reflect changes in operations and the marketplace  Offer more choices  Include incentives  Reduce undeliverable-as-addressed mail  Better reflect that shape matters

3 Forever Stamp  Booklets and sheetlets  Available April 12  Single-piece rate 41¢  Good forever Shaping a More Efficient Future First-Class Mail ®

4 Shape Matters – Single-Piece  Letters 41¢ –Nonmachinable surcharge 17¢  Additional ounce 17¢  Postcards 26¢  Flats 80¢  Parcels $1.13 Shaping a More Efficient Future First-Class Mail ®

5 Shape Matters – Letters  Maximum weight 3.5 ounces –Pieces that exceed 3.5 ounces or any letter-size dimension are charged as flats Shaping a More Efficient Future First-Class Mail ® Length Height Thickness Minimum 5 inches 3-1/2 inches inch Maximum 11-1/2 inches 6-1/8 inches 1/4 inch Nonmachinable letters weighing 1 ounce or less will be charged 17¢ nonmachinable surcharge.

6 Shape Matters – Flats  Maximum weight 13 ounces –Pieces that exceed any dimension are charged as parcels Shaping a More Efficient Future First-Class Mail ® Length Height Thickness Minimum* 11-1/2 inches 6-1/8 inches 1/4 inch Maximum 15 inches 12 inches 3/4 inch *Flats exceed at least one of these dimensions. Flats with the following characteristics are also subject to parcel prices:  Not flexible  Not rectangular  Not uniform in thickness

7 Shape Matters – Lower Prices  Lower prices for –Letters over 1 ounce –Flats over 6 ounces Shaping a More Efficient Future First-Class Mail ®

8 Shape Matters – Example  Flat-size to letter-size envelope Save 39¢ Shaping a More Efficient Future First-Class Mail ® 2-ounce example 97¢ 58¢

9 Shape Matters – Example  Parcel to flat Save 33¢ Shaping a More Efficient Future First-Class Mail ® 2-ounce example 97¢ $1.30

10 Shaping a More Efficient Future Priority Mail ® Price Flat-Rate Envelope$4.60 Flat-Rate Box$8.95 Flat Rates

11 Dimensional Weight and Balloon Rate Pricing  Dimensional weight Zones 5-8  Balloon rate Local and Zones 1-4  USPS-complimentary packaging not subject to either  Lower prices for heavier items Shaping a More Efficient Future Priority Mail ®

12 Dimensional Weight Pricing Example Zone 8, 10 pound, 1.6 cubic foot parcel $30.50 Reduce size by 25% to 1.2 cubic feet $26.35 $4.15 Save Shaping a More Efficient Future Priority Mail ®

13 Shaping a More Efficient Future Express Mail ® New 1-Pound Price Post Office to AddresseePrice 1/2 pound (flat-rate envelope)$ pound$ pounds$21.40

14 Shaping a More Efficient Future Standard Mail ™ Initiatives  Greater recognition of shape  Eliminate DDU rate for letters  Drop ship closer to destination  Detached Address Label surcharge

15 Flats  Changes to flat-size mailing standards –Cover costs –Efficient processing and delivery Shaping a More Efficient Future Standard Mail ™

16 Automation Flats  Must be –Flexible –Rectangular –Uniformly thick  Maximum thickness 3/4″  Minimum size 5″ x 6″ Shaping a More Efficient Future Standard Mail ™

17 Flexibility Test Shaping a More Efficient Future Standard Mail ™ Length runs parallel to the surfaceFlats over 10 inches long that contain a rigid insert; length perpendicular to surface

18 Not Flat-Machinable  Rigid pieces  USFM 1000 standards  Provides an additional option Shaping a More Efficient Future Standard Mail ™

19 Not Flat-Machinable  Preparation –6 ounces and over – machinable parcel preparation –Less than 6 ounces – irregular parcel preparation  Barcodes required  Rate marking required –“NFM” or “Not Flat-Machinable”  DDU entry rates Shaping a More Efficient Future Standard Mail ™

20 Shaping a More Efficient Future Extra Services  New low-cost OneCode Address Change Service  Redesigned Insurance –Barcoded and scanned –$200 and less no signature required  Lower electronic return receipt fee

21 Shaping a More Efficient Future Extra Services  Continue Post Office Box realignment –Caller service now aligned with fee groups  Business Reply Mail prices based on shape  Confirm maintains tiered structure  Annual mailing and permit fees increase

22 Shaping a More Efficient Future International New Shipping and Mailing Options  Global Express Guaranteed ®  Express Mail International  Priority Mail International  First-Class Mail International

23 Shaping a More Efficient Future Resources USPS.com  Pricing change – usps.com/ratecase  Postal Explorer – pe.usps.com  MailPro – usps.com/mailpro  DMM Advisory –