MTAC 114 Package Services Sub-Group Service Standards for Market Dominant Products Package Services and Standard Mail Parcels Sub-group Update June 13, 2007 Full Workgroup Meeting

MTAC 114 Package Services Sub-Group Co-chairs  Tom Underkoffler, Medco Health Solutions, Inc.  John Gullo, USPS 1 Telecon Held Since May 15 Full Meeting  June 1  Next Telecon – June 15, 9-10:30 ET  Next Face to Face – July 15, 3:00 PM

MTAC 114 Package Services Sub-Group Mail Classes  Package Services – to be combined with Standard Parcels All sub-classes –Parcel Post, Bound Printed Matter, Media Mail, Library Mail  Standard Mail (Parcels Only) Special Services Merchandise Return Service (MRS), Bulk Parcel Return Service (BPRS), Delivery Confirmation (DC)

MTAC 114 Package Services Sub-Group Industry Data  Limited information provided Bookspan, Cornerstone  Majority of Industry Participants Drop Ship Mail  General Consensus Existing Standards Met Industry Expectations For Drop Shipped Parcels Concern Over Service Levels For Non-Drop Shipped Parcels  Standard Mail Parcels Have the Same Concerns Over Delivery Times as Package Services Mailers

MTAC 114 Package Services Sub-Group USPS Data  come.htm come.htm  Package Services Retail – 48% Parcel Select – 96%  USPS Operations Looking at Numbers How We Start the Clock Do Standards Meet Current Network

MTAC 114 Package Services Sub-Group Area Breakout  Standard Mail Parcels & Package Services Wendy Smith, PCH & Tom Underkoffler, Medco  Merchandise Return Services Richard Porras, Newgistics  Bulk Parcel Return Service Aaron Horowitz, Cosmetique  Delivery Confirmation Jim Callow / Ken Richardson, OCA

MTAC 114 Package Services Sub-Group Draft Version of package service standards

MTAC 114 Package Services Sub-Group DRAFT Proposals MRS  Service will be re-evaluated following revamping of MRS Delivery Confirmation  Scan Rate Service Standard – 99.1%  Inquiry Wait Time Service Standard – Web response 2 sec.  Scan Data Processing Time – TBD Signature Required –  TBD BPRS  TBD

MTAC 114 Package Services Sub-Group Next Steps  Analysis of proposed vs current standards  Possible ASF service standard  Review all final draft proposals at 6/15 meeting  Finalize proposals at 7/15 face to face meeting