® TOTAL ADDRESS QUALITY & CASS ™ CYCLE “L” Ed WantaBaltimore PCC Address ManagementJune 1, 2007

® WHAT IS CASS  CASS is a certification process designed in cooperation with the mailing industry to improve the accuracy of postal codes that appear on mailpieces presented at the automation discount rate  The CASS ™ software certification program provides hardware and software developers, service bureaus, and commercial mailers a common measure by which to test the quality of address matching software  Through the years the USPS has managed the CASS requirements to improve the address quality of automation workshare mailpieces

® HISTORY OF CASS  USPS began workshare discounts for mailers in 1983  CASS is introduced in the late 80’s as a way to enable mailers to participate in workshare discounts for automation compatible mail  CASS ™ requirements continue to be modified to meet USPS ® requirements ●Mailing requirements ●Improve standardization ●High rise

® DEFINING AN ADDRESS An Address Is Defined By Webster As: “… directions for delivery on the outside of an object (as a letter or package) …”

® DEFINING AN ADDRESS A quality address is defined by USPS as: “A quality address contains complete and correct elements that comply with USPS ® Address Management System standards and allow automated sortation to the intended delivery point for delivery to the specified recipient without requiring the use of Delivery Force Knowledge ™ to complete.”

® USPS GOALS  Reduce UAA by 50% by 2010  Increase DPS percentage to 95%

® COST STUDY ON UNDELIVERABLE AS ADDRESSED MAIL  Major challenges to Address Quality still exist  Move-related UAA appears to be the big contributor  But, physical address accuracy is still a major issue  The results so far support our address quality strategies

® Old address New Address Forward 21.3¢ / pc Billion pieces $421.9 Million Return 51.3¢ / pc Billion pieces $822.5 Million Address Accuracy Study Address Accuracy Study Waste 4.4¢ / pc Billion pieces $269.8 Million x PRC LR-L-61 for R Rate Case (Christiansen UAA Study –Table 3.1) Billion pieces $1.856 Billion

® Common Address Quality Problems PHYSICAL ADDRESS UAA Missing Apt or Ste Number Incorrect Number Incorrect Recipient Missing Number Missing RR or Box Number Incorrect Street Name ACME PRODUCTS 4759 WESTERN ST NEW YORK NY CARL SHULER 1414 LAKE ST APT CHICAGO IL CARL SHULER 1914 LAKE ST APT 3A CHICAGO IL CARL BROWN 1414 LAKE ST APT CHICAGO IL CARL SHULER LAKE ST APT 3A CHICAGO IL CARL SHULER PO BOX CHICAGO IL Millions of Pieces CARL SHULER 1414 LARK ST APT 3A CHICAGO IL

® CASS Certified ™ Software TOTAL ADDRESS QUALITY Standardize AEC / AECII ™ DPV ™ LACS Link™ ACS ™ ANK Link™ NCOA Link™ Validate Update

® CASS ™ REQUIREMENTS TODAY  CASS Certified ™ software standardizes the address record ●All necessary elements present and correct ●Address elements correctly placed ●Fully spelled or abbreviated data elements (using USPS ® standard abbreviations)  Verifies that an address falls into an existing ZIP+4 ® range to qualify for automation discount rates

® CASS ™ CYCLE K EXAMPLE TODAY 328 CAITLIN DR OAKLAND TN  Existing ZIP+4 ® range is (E&O)  +4 range = 100 addresses  Actual address in the +4 range = A mailer today can mail 100 pieces to unique address in this ZIP+4 at an automation discount rate and 94 of them will need to be handled manually by the carrier, 6 will DPS process

® CASS ™ CYCLE “L”  CASS Cycle “L” will be required for automation discounts beginning August 1, 2007  LACS Link™ processing is a requirement under CASS Cycle “L”  DPV ™ processing is a requirement under CASS Cycle “L” ●Validation to primary number

® LACS Link™ PRODUCT  LACS Link is an Address Quality tool to update addresses changed due to local community address conversions  Approximately 400,000 addresses changed each year since 1994  Nearly 40% of rural route/box addresses used by mailers cannot be delivery point validated!

® DPV ™ PRODUCT  DPV works in conjunction with current CASS Certified ™ address matching products to validate addresses  DPV provides a “YES / NO” response to an inquiry  DPV does not correct missing or incorrect address components  DPV allows a user to confirm the validity of address information - right down to apartment and suite number

® COMMUNICATION ON CASS ™ CYCLE L  CASS Department Messaging  Presentations  External Articles  USPS ® Articles  Industry BLOG Sites  RIBBS CASS Web Site  Bizzotto / Bravo Letter To Mailers

® WHEN SHOULD MAILERS BEGIN TO PREPARE?

® PREPARATION FOR CASS ™ CYCLE L  USPS is working closely with vendors to minimize impacts of Cycle L implementation  Reviewing existing reporting requirements to ensure vendors/mailers operational success  International distribution of LACS Link and DPV is not authorized  MTAC #112 tasked with a collaborative effort to allow for a smooth transition on August 1, 2007

® PREPARATION FOR CASS CYCLE L Mailers should:  Anticipate ~2% reduction in automation rate eligibility  Process current list NOW! ●DPV ™ ●LACS Link™  Work with your current vendors who may have additional address hygiene tools that can improve address lists  Process no record addresses through AEC/AEC II ™

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® CASS Certified ™ Software LACS Link™ DPV ™ AEC / AEC II ™ NCOA Link™ ANK Link™ ACS™ Standardize Validate Update TOTAL ADDRESS QUALITY

® FOR MORE INFORMATION Customer Support