1 CIO Strategic Customer Focus February 17, 2011 Ellis Burgoyne Chief Information Officer and Executive Vice President

2 Agenda  CIO Mission and Organization  CIO Focus: Improving Mailer Experience  Driving Change

3 CIO Mission and Organization  Information TechnologyJohn Edgar, VP Information Technology  Engineering SystemsKelly Sigmon, VP Engineering Systems  Product InformationJim Cochrane, VP Product Information  Mail Entry & Payment TechnologyPritha Mehra, VP Mail Entry & Payment Technology  Corporate Information SecurityChuck McGann, Manager, Corporate Information Security “Leverage Technology to Drive Business Value”

4 CIO Focus: Improving Mailer Experience Technology Approach Customer Engagement Streamline Processes Visibility

5 CIO Focus: Improving Mailer Experience  Transform: technology infrastructure for rapid product and service development, a stable operating environment, state-of-the-art customer experience  Deploy solutions to provide end-to-end visibility, a seamless process for mail entry and delivery using Intelligent barcodes and digital workflows. Leverage digital, online, mobile and social media for a ubiquitous transaction environment  Focus on the customer and drive business growth and innovation with a focus on analytics, using a project management approach and metrics  Partner with the industry, employing a collaborative approach, to transform the mail supply chain to bring greater convenience, visibility, and operational efficiencies to enable valuable products and services across all segments of the mail supply chain.

6  Erratic Frequency for Mail Preparation, Rule Changes, Assessments  Removal of Discounts too soon  Full Service ACS issues  Lack of Value for mandatory migration from POSTNET to Intelligent Mail  Insufficient Visibility  Inconvenient Acceptance & Payment Processes  SOX: Inconsistent Entry Processes Mailer Concerns

7  Predictive Mail Preparation & Rule Changes  2 Major Releases a Year –Structural Software Changes  4 Minor Releases a Year –Parameter Changes, Reports, Internal Processes Driving Change: Immediate Actions

8  Move from “Mandate” to “Value Proposition”  Automation discounts for POSTNET beyond May 2011  Simplified Start-the-Clock process mitigates removal of Full Service discounts  Aggressive Approach to Resolving ACS issues in CFS  No Full Service ACS Charges  Provide visibility across supply chain at no charge –Mail piece scans, Tray Scans, Container Scans, Reports  Streamlined Entry & Enterprise Payment Driving Change: Immediate Actions

9 Driving change: Key strategies Enable Valuable Products and Services Transform the Online Experience Transform the Mailing Experience with Seamless Acceptance Transform Customer/Supplier Engagement Transform Payment Solutions with Enterprise Payment Transform Customer Decision Making Capabilities With End-to-End Visibility Transform Customer Support to Enhance Service and Drive Sales Optimize Availability and Performance of Customer Interfacing Systems