Richard J. Strasser, Jr. Chief Financial Officer & Executive Vice President FINANCIAL PERFORMANCE QUARTER I, FY 2004 FINANCIAL PERFORMANCE QUARTER I, FY 2004

FINANCIAL PERFORMANCE Revenue FY 2004 Chg %Chg. $18,217 -$181 FY 2003 $18,398 Expense 16, ,128 Net Income $ 1,817 $ 2,269 ($ Millions) Numbers may not add due to rounding Income Statement FY 2004 – QTR I (Oct. 1 – Dec 31)

FINANCIAL PERFORMANCE Change from FY 2003 Revenue $18,217M Forecast Actual FY 2004 – QTR I (Oct. 1 – Dec 31)

FINANCIAL PERFORMANCE FY 2004 – QTR I (Oct 1 – Dec 31) Total FY 2004 Chg %Chg 54,023M -164M -0.3 FY ,187M First-Class 25,866M -184M ,049M Volume Standard 24,891M 24,839M +51M +0.2

FINANCIAL PERFORMANCE FY 2004 – QTR I (Oct 1 – Dec 31) Change From Previous QTR 0.4M Deliveries 141.8M Change From QTR I FY M

FINANCIAL PERFORMANCE Change from FY 2003 $664M FY 2004 – QTR I (Oct. 1 – Dec 31) Expense $16,400M Forecast Actual $272M

FINANCIAL PERFORMANCE Forecast Actual FY 2004 – QTR I (Oct. 1 – Dec 31) Workhour Reduction

FINANCIAL PERFORMANCE FY 2004 – QTR I (Oct 1 – Dec 31) Chg From Previous QTR -8,462 Career Complement 719,850 Chg From QTR I FY ,276

FINANCIAL PERFORMANCE FY 2004 – QTR I (Oct 1 – Dec 31) Total Factor (TFP) +1.7% Productivity Output Per Workhour +1.4% Change From FY 2003

FINANCIAL PERFORMANCE Quarter II – Summary Outlook On Track Outlook On Track $16.7B Below Forecast $0.2B Above Forecast $16.9B 50.0B Forecast Expenses Net Income Volume 50.0B $15.8B $1.3B Revenue $17.1B Quarter II FY 2003

Richard J. Strasser, Jr. Chief Financial Officer & Executive Vice President FINANCIAL PERFORMANCE QUARTER I, FY 2004 FINANCIAL PERFORMANCE QUARTER I, FY 2004