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® Charles Bravo Senior Vice President Intelligent Mail & Address Quality Charles Bravo Senior Vice President Intelligent Mail & Address Quality intelligent MAIL ™ in the U. S. Postal Service Mailers’ Technical Advisory Committee Meeting November 5, 2003 Mailers’ Technical Advisory Committee Meeting November 5, 2003

VISION NEW BUSINESS VALUE End to end visibility Information-rich code OneCode Vision TM

INNOVATION Patents –Initiated patents on 5 new innovations in Fiscal Year 2003 –Actively pursuing 18 other innovations 23 Trademarks on Intelligent Mail and Address Quality service names

STRATEGIES Uniquely identify mail and unit loads Develop and deploy enabling infrastructure Enhance address quality Uniquely identify mail and unit loads Develop and deploy enabling infrastructure Enhance address quality

CONFIRM PROGRESS - INTERNAL Over 1,000 marketing and operations personnel will be trained on Confirm this month Includes process for internal seeding of operational performance improvements To date, over half the country has been trained Over 1,000 marketing and operations personnel will be trained on Confirm this month Includes process for internal seeding of operational performance improvements To date, over half the country has been trained

Letter and Flat Mail Code Consolidation Intelligent Mail and Address Quality PDF 417 PDF State Barcode Data Matrix Data Matrix Mail Technology Study - Preliminary Trends –Some industries may find it difficult to convert to 2D codes Widely used inkjet printing technology requires replacement Uses more ink and increases recurring costs –Reading and sorting 2-D codes would also require significant investments Both USPS and Pre-sorters –4-state code being investigated as potentially easier alternative Uniquely Identify Mail and Aggregates

Letter and Flat Mail Code Consolidation Intelligent Mail and Address Quality Effort underway to move planet to a 4-state Code –Platform to consolidate letter and flat mail codes –Currently defining code Length – constraining to current POSTNET size (3.1”) Characters – 31 (includes: international id. (2), service id. (3), subscriber id (6), unique id (9), Zip (11)) Includes robust error correction Height – planned testing –Requires software updates to: WFOV, AFSM 100, UFSM, DBCS (all), CSBCSs, and IDS Program plan: 18 month effort Proof-of-Concept (8 months): NCSC live mail Mailer Pilot (14 months): 1-2 mailer test

FLATS IDENTIFICATION CODE SORT Add ID Tag read/print capability to AFSM 100 flat sorters

Parcels and Bundles Conversion to UCC/EAN Code 128 on Parcels –Validation testing at 2 BMCs in July –Concatenated codes improve read rates –Coding Standards Board approval in Sep –Implementation in Jan ‘04 Developed requirements for SSP, POS One, and Click-N-Ship to support new standard label –Includes 5-digit zip and Del.Con. –UCC/EAN Code 128 Defined Code (UCC/EAN Code 128) for Bundle Tracking to support new Parcel and Bundle Sorter –Added presort-level and zip to code Intelligent Mail and Address Quality Width Modulated E.g., Code 128

OCR READABLE CHANGE OF ADDRESS

NEW MOVER’S GUIDE Initiative to make COA more user-friendly

INTERNET CHANGE OF ADDRESS Nov 01Oct 03

INTERNET CHANGE OF ADDRESS 6 Million Forms Processed Nov 01Oct 03

INTELLIGENT MAIL MAILER BENEFITS Adds value to the mailers’ business processes Simplifies the use of services Increases transparency Allows mailer more usable space on mail piece Supports accurate collection of postage Enhances security while maintaining privacy Adds value to the mailers’ business processes Simplifies the use of services Increases transparency Allows mailer more usable space on mail piece Supports accurate collection of postage Enhances security while maintaining privacy 2-D Data Matrix Height Modulated 4-State Width Modulated Code 128

WE’RE ON TRACK Our goals for the next days include: Successfully complete the Confirm training of over 1,000 marketing and operations personnel Share results from our Mail Technology Study Release public version of the Intelligent Mail plan Define strategy to reduce UAA Distribute RFP for Intelligent Mail Devices

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