1 Restricted and Confidential—Internal Use Only Paul Vogel MTAC May 25, 2011

2 Agenda  Core Business & Marketing Strategies  Initiatives Past & Current  Innovations Updates  What’s New in the Marketplace

3 Revenue Forecast Retail Products & Services Domestic and International Revenue Forecast  Continued decline in First-Class revenue  Increased revenue from Marketing Mail, Shipping, and Retail Products FY08FY09FY10FY11FY12FY13

4 Initiatives Discussed Last Meeting Critical Mail Legal Size - Flat Rate Envelope Regional Rate Box Alternate Postage Payment – Hallmark NSA’s Initiatives Across Product Lines Prepaid Flat Rate Boxes Sample Box Reply Rides Free Saturation / High Density Incentive Every Door Direct Mail Newly Approved or Implemented Since Last Meeting * Initiatives to be discussed further in slides that follow ItemDate 6,000 PO Boxes -- Move to CompetitiveMay 18, 2011 Mobile Barcode Promotion -- Approved *May 17, 2011 Mail Works Guarantee -- Market TestMay 16, 2011 Gift Card -- Market TestApril 28, 2011 Forever Pre-Paid PM FR Postage -- ApprovedApril 17, 2011 Lightweight Commercial Parcels -- Move to CompetitiveApril 6, 2011 Sample Showcase II - LaunchMarch 31, 2011 Adult Signature Service -- Move to CompetitiveMarch 28, 2011 Commercial Std Mail Parcels -- Move to CompetitiveMarch 2, 2011 Every Door Direct Mail -- Market Test *March 1, 2011 Parcel Select Regional Ground Service -- Approved.February 23, 2011

5 EDDM Program & Campaign Every Door Direct Mail  EDDM Retail o On-Ramp for Sm / Med Businesses o Capture New Business o Target 77% of Sm. Businesses who don’t currently use Mail.  EDDM BMEU o Target Large Businesses who do not currently use the mail in their advertising mix, but instead utilize Alternative Media channels to do saturation advertising.  Outreach to 90,000 Printers. o DM Campaign to Printers - How to Promote EDDM – June 2011  New Feature – Based on Industry Input

6 Strategic Actions Toward Growth Build Awareness Deliver Positive Customer Experiences Promote and Sell Products and Services Advertise to build USPS brand and support growth Provide convenient Retail and Expanded Access and consistently positive experiences Pursue opportunities through direct Sales and partnerships Provide convenient Business Mail Entry and Enterprise Payment Deliver world-class product Visibility Communicate to generate employee and stakeholder support Build Identification and Loyalty Program to recognize customers

7 Adding Value to Mail  Weight – 2 Oz  Appearance  Simplification  Advertising  Leverage Technology YOUR COMPANY ADDRESS CITY STATE ZIP CODE

8 Leverage Technology  IMb Applications  Alternate Postage  Mobile Barcode Promotion  Market Test Approved May 16, 2011  Co-Mingled; Co-Mailed – Approved o Clarification provided on Monday May 23 rd.

9 Shipping Solutions Sample Showcase II April ‘11 Parcel Select – Regional Ground April ‘11 PM – Pre-Paid FOREVER Postage April ‘11 PM Game Board Box April ‘11

10 Additional Areas of Opportunity for Growth  Hybrid / Digital / Electronics  E-commerce  Financial Services  Global  2012 Rate Case

11 Questions?