1 Intelligent Mail ® Update Mailer’s Technical Advisory Committee (MTAC) November 19, 2009 Tom Day, Sr. VP Intelligent Mail / Address Quality Pritha Mehra, VP Business Mail Entry & Payment Technology

2 Agenda  Intelligent Mail ® Update – Project Update – Release 2 – Timeline and Status – Release 3 – Timeline and Content – Full-Service Update from TEM and Production  PostalOne! ® Release 22 –Release Update –Mail Quality Reports  Known Software Issues  Mailer Issues  Test Environment for Mailers (TEM)  Training and Communication

3 Agenda  Intelligent Mail ® Update – Project Update – Release 2 – Timeline and Status – Release 3 – Timeline and Content – Full-Service Update from TEM and Production  PostalOne! ® Release 22 –Release Update –Mail Quality Reports  Known Software Issues  Mailer Issues  Test environment for Mailers (TEM)  Training and Communication

4 FY 2009FY 2010FY 2011 JulyAugSeptOctNovDecJanFebMarAprilMayJuneJulyAugSeptOctNovDec SOX Lockdown August FS Release 4 January Price Change March FS Release 3 FS Rel 2 (22.0) 11/15 FS Rel. 3 (24.0) 3/14 Price Change Effect. Date 11/29 Reqs (8w) 8/3–9/25 Design (7w) 9/28-11/13 Build/PT(5w) 11/16–12/21 SIT (6w) 12/22–1/29 CAT (4w) 2/8-3/5 Deploy (2w) 3/1-3/14 Finalized Structural Price Change Requirements SIT Prep 12/8–12/21 (2w) CAT Prep 1/18–2/5 (3w) Design/Build SIT CAT Deploy Baseline Scope Jan Price Change 1/4 11/ /4 12/7 -12/11 12/14 – 12/23 12/28 - 1/4 November Release 2 Build(6w) 7/13–8/28 SIT (4w) 8/31–10/2 CAT (4w) 10/5 – 11/6 Deploy (1w) 11/6 – 11/15 SRS (4w) 11/23-12/18 Reqs (4w) 1/18–2/12 Solution Architecture Patch 4 8/30 Patch 5 10/4 Patch 5 Design/Build 8/3–8/21 SIT 8/24 - 9/11 CAT 9/14–9/25 Deploy 10/4 Product Candidates Published 10/19 Retire POC `6/30 Non- Product Candidates Published 11/9 Full-Service FY10 Program Schedule Final Scope 12/21-1/15 Design (6w) 2/15–3/26 Build (6w) 3/29-5/7 SIT (6w) 5/10-6/18 CAT (6w) 6/21-7/30 Deploy (2w) 8/2-8/15 PostalOne! SASP/iMAPS Release - 5/24 SPM SIT (8w) 12/28–2/22 Deploy (3w) 2/22-3/15 SPM CAT iMAPS/ SASP SIT iMAPS/ SASP CAT 3/29-4/26 (4w) 4/26-5/17 (3w) Deploy (1w) 5/17-5/24 SPM Build/PT(7w) 11/13–12/28 SPM Open Items Need to discuss Release 2 and 3 Patches Need to plan Requirements for Release 5 FS Rel. 4 8/15 SPM Reqs (8w) 8/3–9/25 SPM Design (6w) 9/28-11/13 Release 4 Dependencies: SOX freeze FY10 budget iMAPS PT (5w) 2/22-3/29 iMAPS Build (10w) 12/14-2/19 2/15-3/8 (3w) SASP Build 1/25-2/22 SASP PT (5w) 2/23-3/29 iMAPS Design (7w) 10/1 – 11/13 Staging Design 11/16 – 12/11

5 Agenda  Intelligent Mail ® Update – Project Update – Release 2 – Timeline and Status – Release 3 – Timeline and Content – Full-Service Update from TEM and Production  PostalOne! ® Release 22 –Release Update –Mail Quality Reports  Known Software Issues  Mailer Issues  Test Environment for Mailers (TEM)  Training and Communication

6 Full-Service Release 2 Schedule (PostalOne! Release 22 ) Requirements (4/20-6/24) Design and Build (6/8-8/28) IT SIT (8/31-10/9) Price Change Effective Date 11/29 CAT (10/5-11/8) Release /15 System Readiness Customer Interaction and Training Post-Release Release Notes 11/18 Friday Webinars (8/18 – 11/6) PCC Symposium 9/16 Regional OH Symposium 10/6 Guide Refresh 8/31 Guide Refresh 9/10 Guide Refresh 10/9 Guide Refresh 11/12 Guide Refresh 12/4 Mail.XML Errata A 8/25 Mail.XML Errata B 9/10 Post-Design Release Notes 8/21 Pre-Release Release Notes 11/3

7 Customer Acceptance Testing/ Deployment  6944 test scenarios –100% complete –99.8% pass rate –15 Open Issues/Defects  Production and TEM successfully deployed on 11/15/09 Customer Acceptance Testing (CAT) completed week of 11/09

8 Release 2 Plan Lines and Milestones There are 5 milestones past due as of 11/6/09. 85% are complete vs. 87% expected.

9 What’s next  Intelligent Mail Update – Release 2 – Timeline and Status – Release 3 – Timeline and Content – Full-Service Update from TEM and Production  PostalOne! ® Release 22 –Release Update –Mail Quality Reports  Known Software Issues  Mailer Issues  Test Environment for Mailers (TEM)  Training and Communication

10 FY09 Full-Service Program Release 3 AUGSEPTOCTNOVDECJANFEBMAR FY10 APR Requirements (8/3 – 10/2) Design and Build (9/28 – 12/21) SIT (12/22 – 1/29) CAT (2/8 – 3/5) Design Build SIT (12/7- 12/11) CAT (12/14- 12/23) (11/20-12/4) Release 23.0 January Price Change 1/4 Release 24.0 FS Release 3 3/14 Full-Service Release 3 Schedule

11 Release 3 Features  Hardcopy Postage Statement Process Improvements  Service Performance Measurement  SOX  National Distribution Center Consolidation  MID/CRID Management  MLOCR/Continuous/One-Pass Mailers Improvements  PBV to Support SOX  Full-Service Issues/Fallout *1 New for March

12 What’s next  Intelligent Mail Update – Release 2 – Timeline and Status – Release 3 – Timeline and Content – Full-Service Update from TEM and Production  PostalOne! ® Release 22 –Release Update –Mail Quality Reports  Known Software Issues  Mailer Issues  Test Environment for Mailers (TEM)  Training and Communication

13 Test Environment for Mailers [TEM] On-boarding Trend

14 Production Authorization Trend

15 Full-Service Mailings as of 11/06/09 Postage StatementsPieces Finalized7,957847,731,347

16 Full-Service Mailings as of 11/06/09 Postage StatementsPieces Finalized7,957847,731,347

17 Intelligent Mail Barcode Piece Volume Pieces In Millions 05/0805/1505/2205/2906/0506/1206/1906/2607/0307/1007/1707/2407/3108/0708/1408/2108/2809/0409/1109/1809/2510/0210/0910/1610/2310/30 Weeks Intelligent Mail Barcodes Estimated Mail Pieces (in millions)

18 What’s next  Intelligent Mail Update – Release 2 – Timeline and Status – Release 3 – Timeline and Content – Full-Service Update from TEM and Production  PostalOne! ® Release 22 –Release Update –Mail Quality Reports  Known Software Issues  Mailer Issues  Test Environment for Mailers (TEM)  Training and Communication

19 Release Update  New Price for Intelligent Mail Full-Service option: –Discounts $0.003 for First-Class Mail $0.001 for Periodicals, Standard Mail, Bound Printed Matter  Mail.XML –Postage Payment and Documentation –Appointment Scheduling –Full-Service Feedback  Mail Quality Reports PostalOne! ® Release

20 Three options now available Postal WizardMail.datMail.XML Used for mailings under 10,000 mailpieces that do not require documentation Used for small, medium, large volume mailings First-Class Mail, Standard Mail First-Class Mail, Standard Mail, Periodicals, Bound Printed Matter Flats Supports Postage StatementsSupports Postage Statements and documentation ie. Qualification Reports Supports Postage Statements and documentation i e. Qualification Reports Secure Web-based alternative to submit postage statements Secure batch electronic data exchange Secure transactional, bi- directional electronic data exchange One-Directional Bi-Directional Supports feedback to mailers such as Full-Service ACS, Start- the-Clock, Container Visibility, MID, CRID, Data Quality Reports PostalOne! Release

21 Postage Statement Generation for Full-Service Mailings  eDoc Postage Statements include a line for the number of pieces claiming the Full-Service discount Starting November 15, 2009  Hardcopy Postage Statement Acceptance from Nov. 15 to Jan. 4, 2010 –Mail owners/mail preparers who are NOT claiming full-service prices will be allowed to use certain older versions of hardcopy postage statements until January 4, 2010  Postage Statements submitted electronically prior to the software release of November 15, with a mail date of Nov. 15 or later cannot be finalized. –The acceptance unit will notify the mailer/mail preparer (whoever submitted the electronic postage statement) to cancel the original job/postage statement and resubmit –The resubmitted job/postage statement must have a mailing date of November 15 or later  Plant Verified Dropship Mailings –Mailers submitting PVDS mailings on or after November 29 can submit the eDoc for those mailings after November 15 in non-ready to pay status –Mailer can only send electronic ready to pay status for the PVDS mailings on or after November 29 Postage Statement Submission

22 What’s next  Intelligent Mail Update – Release 2 – Timeline and Status – Release 3 – Timeline and Content – Full-Service Update from TEM and Production  PostalOne! ® Release 22 –Release Update –Mail Quality Reports  Known Software Issues  Mailer Issues  Test Environment for Mailers (TEM)  Training and Communication

23 With the November 2009 release the following reports are available via Mail.XML:  CSA Verification  Container Barcode Verification  Handling Unit Barcode Verification  Piece Barcode Verification  By/For Conflict Verification  Service Type Verification  Appointment Verification  MID Verification Mail Quality Reports

24 What’s next  Intelligent Mail Update – Release 2 – Timeline and Status – Release 3 – Timeline and Content – Full-Service Update from TEM and Production  PostalOne! ® Release 22 –Release Update –Mail Quality Reports  Known Software Issues  Mailer Issues  Test Environment for Mailers (TEM)  Training and Communication

25 Performance Processing Large Files Known Issues  Performance issues have been identified when processing co- mingled mailings and co-mailings with multiple mail owners, large volumes MTAC 122 Task Group 17 was created to address performance issues  Recommendations to address performance issues include: –Remove validations with performance impacts –Optimize data submission process –Optimize postage statement generation process –Interim workaround through adjustments to acceptance process

26 Other Issues  Postage Statement Processing –Bound Printed Matter Flats –MLOCR One-Pass –Copies / Pieces for Periodicals In-County –Addressed Supplements cannot be entered for combined Periodical mailings –Permit Reply Mail  Documentation –MLOCR Tray Difference Reports –MLOCR Qualification Reports –Single Piece reporting –Register Weight displays Known Issues

27 Other Issues  Copalletization –eDoc and Payment synchronization  Service Type Codes  Customer Supplier Agreements  Full-Service Verification Failures Known Issues

28 What’s next  Intelligent Mail Update – Release 2 – Timeline and Status – Release 3 – Timeline and Content – Full-Service Update from TEM and Production  PostalOne! ® Release 22 –Release Update –Mail Quality Reports  Known Software Issues  Mailer Issues  Test Environment for Mailers (TEM)  Training and Communication

29  Invalid barcode provided by mailers on containers, trays, mailpieces  Scanned IMbs not consistent with IMbs found in the Mail.dat  IMbs not unique across or within mailings  Invalid MID – container barcode, handling unit barcode, or piece barcode Electronic Documentation  By/For conflict  Invalid MID for Mail Owner or Mail Preparer  CSA details in Mail.dat do not match CSA details in FAST  Entry Point data in Mail.dat does not correlate to actual acceptance site  Invalid Service Type Code in the PDR records in Mail.dat Start-the-Clock  Drop Ship and Origin Entry Containers not associated to FAST appointments Mailer Issues Mail Preparation Issues

30 What’s next  Intelligent Mail Update – Release 2 – Timeline and Status – Release 3 – Timeline and Content – Full-Service Update from TEM and Production  PostalOne! ® Release 22 –Release Update –Mail Quality Reports  Known Software Issues  Mailer Issues  Test Environment for Mailers (TEM)  Training and Communication

31 Mailers New to eDoc and/or Full-Service  Mailers may choose to participate as an eDoc mailer or may participate as a Full-Service mailer  Mailers must submit Basic and/or Full-Service scenario test files to the Help Desk and TEM  Existing eDoc mailers migrating to Full-Service –Must submit Full-Service test scenarios to TEM –There is no parallel run for Special Postage Payment System mailers who have already been approved for eDoc and migrate to Full-Service Mail.XML  Mailers must submit electronic files to the Help Desk and the Test Environment for Mailers (TEM) –Upon successful completion of TEM, mailers will be notified by the Help Desk and moved into Production. Test Environment for Mailers (TEM)

32 What’s next  Intelligent Mail Update – Release 2 – Timeline and Status – Release 3 – Timeline and Content – Full-Service Update from TEM and Production  PostalOne! ® Release 22 –Release Update –Mail Quality Reports  Known Software Issues  Mailer Issues  Test environment for Mailers (TEM)  Training and Communication

33 Updates for Release 22.0  Training –Webinars –PCCs –Symposiums  Communication –Intelligent Mail RIBBS –Intelligent Mail Updates –DMM Advisory Training and Communication