Welcome Kinston, NC P&DF Area Mail Processing (AMP) Study November 4, 2009

Slide 2 Agenda AMP Video PowerPoint Presentation Question & Answer Period Close Area Mail Processing (AMP)

Slide 3 AMP Video AMP Video Clip

Slide 4 AMP (Area Mail Processing) Consolidation of all outgoing or all incoming mail processing operations from one or more facilities into other automated processing facilities for the purpose of improving operational efficiency and/or service. Effective process used for decades to help us adjust to changes in the environment Area Mail Processing (AMP)

Slide 5 The Need for Change Postal Service faces Acute Financial Crisis Rise in Electronic Communications Economic Recession Change in Mail Mix –Increase in Work Sharing and Drop Shipments –Decrease in First-Class Mail Volume

Slide 6 The Need for Change ~ 29% decline since 1998

Slide 7 Benefits of Consolidation Puts the Right People in the Right Place with the Right Resources Utilizes Equipment Efficiently Reduces Cost Does Not Affect Customer Services Supports Our Network Plan Positive Outcomes

Slide 8 Service Service Standards for First-Class Mail –Upgrades to Overnight Service Customer & Delivery Services –Delivery Services –Customer Services Retail Hours Business Mail Acceptance Drop Shipment Common Concerns

Slide 9 Jobs –Impacted Jobs Community Identity –Local Postmark Remains Available –Meter and Permit Indicia Do Not Change Common Concerns

Slide 10 Kinston to Fayetteville Travel Distance 88 miles

Slide 11 Benefits from consolidation Approximately $1.3M annual savings Maximize resources Reduce excess capacity Eliminate duplicate operations Focus on remaining operations Kinston to Fayetteville

Slide 12 Delivery times are not affected Retail services are not affected Meter and permit indicia do not change No change in hours for business mail acceptance Drop shipments at Kinston continue Kinston to Fayetteville

Slide 13 Potential employee impact Projected net decrease of 19 positions Reassignments will be made in accordance with union collective bargaining agreements Kinston to Fayetteville

Slide 14 Reduces Costs Improves Efficiency Puts the Right People in the Right Place with the Right Resources Transparent to Customer Services Supports our Strategic Plan Summary

Slide 15 QUESTIONS and COMMENTS Please come to the microphone and state your: NAME and BUSINESS AFFILIATION Question & Answer Period

Slide 16 Mail additional comments to: CONSUMER AFFAIRS MANAGER MID-CAROLINAS DISTRICT 2901 SCOTT FUTRELL DRIVE CHARLOTTE NC Must be postmarked no later than November 19, 2009 Question & Answer Period