1 4-State Barcode Implementation 6060 PRIMACY PKWY STE 201 MEMPHIS TN John Doe 6449 AMBERVIEW CV MEMPHIS TN #BWNGKVN # Address Change Service 6060 PRIMACY PKWY STE 201 MEMPHIS TN John Doe 6449 AMBERVIEW CV MEMPHIS TN Address Change Service

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3  Uses 4-state barcode symbology  Refers to 4 different positions of the bars within the barcode  The code will:  Uniquely identify the sender  Uniquely identify the mailpiece  Provide a destination ZIP Code for sortation & routing  Encode Special Service indicators & Address Change Service (ACS) requests Overview / Background

4 4-state Customer Barcode Benefits USPS Identified Benefits  Combines multiple codes into a single code  Frees up mail piece real estate  Select a suite of services using a single code  Move between multiple suite of services within mailing  All OneCode services accessible  Greater number of uniquely identifiable mail piece  Relates all services back to 1 unique customer ID  Improve mail service – enhanced diagnostics  Automated services means less cost – win-win

5 4-State Implementation Status Letters – Sept. 1, 2006  Over state encoders downloaded or sent to mailers  Barcode will be available for automation discounts: -With services – September 1, All letter mail – March 1, (Note: Customer ID required)  OneCode Confirm -First-Class and Standard Mail -Barcode Location same as POSTNET  OneCode ACS -First-Class Mail – September 1 -Standard Mail – Fall ’07 -(Note: dependent upon full deployment of PARS) -Barcode location – above address block until Fall ‘07 4-State Barcode Implementation Remains On-Schedule

6 Letter Mail Test deck – stress deck on specifications Move Validation Mail Over 20 million 4-state barcode mail pieces Prudential Mail, American Express, Fingerhut, Census Tested over 2 million mail pieces Shorter height testing revealed no degradation for letters Letter height specification updated to between.134 and.230 Testing to Ensure Success All Testing is Going Well

7 OneCode ACS is available for First Class letter mail Sept. 1, 2006 ABC Company 123 Main St Memphis TN Address Service Requested 6060 PRIMACY PKWY STE 201 INTELLIGENT MAIL & ADDRESS QUALITY MEMPHIS TN OneCode PKWY INTELLIGENT MAIL & ADDRESS QUALITY MEMPHIS TN USPS Forward Electronic address corrections only – no hardcopy PARS will allow standard mail to be offered late in 2007 OneCode ACS

8 4-State Barcode Implementation for Flats  Flats testing underway  LALA testing progress  Flats testing underway (Quad Graphics, Quebecor, R.R. Donnelley, Brown Printing, Perry Judd, …..and Eng. Stress Deck)  Decision on height for 4-state on flats – December 1, 2006  Flats – Spring ’07  Barcode will be acceptable for automation discounts  OneCode Confirm for First-Class and Standard Mail  OneCode ACS for mail on AFSM-100 -First-Class -Periodicals -Standard – Fall ‘07

9 OneCode ACS vs. ACS Barcode Symbology4-StateNone Percent Electronic High 90’s 80-85% plus hardcopy Can Combine ServicesYesNo Response TimeHoursDays Cost 21¢ per record* 21¢ per electronic record/75¢ per hard copy * Proposed price reduction in current rate case for letter mail

10 CONFIRM / Data Flow - Infrastructure Improvement Results  Improvements  CONFIRM now sent near real-time  Over 200 plants with mail processing infrastructure -Speeds-up data availability -Prevents data loss due to file corruption  Replaced older servers with state of the art ones  Consolidated servers nationally for better monitoring  Results  Significant reduction in frequency of major issues (SPLY)  Customer Service call volume has dropped by one-third -Subscriptions and volume have grown

11 OneCode CONFIRM vs. CONFIRM Barcode Symbology4-StatePLANET Codes Unique Numbers 1 Billion 1 Million Can Combine ServicesYesNo Cost Same as CONFIRM CONFIRM pricing Available for all letter mail Sept. 2006

12 Unique Identification at All Levels of Aggregation is the Foundation of Total Mail Visibility Unique Mailpiece ID (ex: 4-state Customer Barcode) Tray Label Assigned Transportation Tray Label Container Barcode Unique Mailpiece ID (4-state Customer Barcode, IBI) Future Visibility - Nesting into Unit Loads

13 WHAT YOU CAN DO?  Learn more about the 4-State Barcode  Rapid Information Bulletin Board System (RIBBS) web site (  Automation discount tied to 4-state in 2009