® August 12, 2009 MTAC General Session August 12, 2009 MTAC General Session Update

Agenda  Flat Volume Update  Program Status ● Deployment Transition to Operations  FSS Redirection Update (Phase 1A)  Questions

Flat Volume Trend RPW FY 2008 vs Flat Vol. Decline -11.1% FY07 & FY Billion Flats FY07 & FY Billion Flats FY 2007 vs. FY 2006 Flat Vol. Decline -2.6%

Flat Volume Trend by Month - FY 2009 RPW -19% +.4% -5% -23% -20% -12% -16% -21% -12%

Flat Volume - June FY 2009 RPW -8% -14% -12%

Flat Volume by Class - FY 2009 RPW FY 2009 YTD Total Flat Volume Decline - 14% FY 2009 YTD Total Flat Volume Decline - 14% -15.5% -15.6% -6.7%

Program Status – Deployment  FSS deployment in progress ●Installations & ramp-up continues ●Overall timeline revisions to include redirections  Training systems complete - NCED ●Maintenance training starting  Field readiness on target ●Focus on preparation and transition to operations

 Sequencing on 3 FSS 4 th FSS undergoing retrofits Complete mid September  Sequencing flats for 37 delivery units & 1,103 routes  Route adjustments in FSS offices have eliminated full-time routes  Downsized casing equipment capturing delivery space  Delivery vehicles have been freed up for redeployment Transition to operations – Dulles VA

 Columbus – sequencing on FSS #1 since June  Sequencing flats for 15 delivery units & 479 routes  Route adjustments in progress  Columbus FSS # 2  Installation complete  Test deck runs complete  Begin ramp-up to operations August 9 th Transition to operations – Columbus

 Kansas City FSS #1 Installation complete Test deck runs complete Begin ramp-up to operations August 28 th Transition to operations – Kansas City  Kansas City FSS #2 Installation in progress 73% complete

 Phoenix (West Valley) FSS #1 - i nstallation complete Test deck runs scheduled August 10 th Begin ramp-up to operations August 30 th Transition to operations – Phoenix (West Valley)  FSS # 2  Install 79%  FSS # 3  Install 53%

Program Status – Moving Forward  Finalizing revised deployment / installation schedule  Referring to deployment as Phase 1 & 1A ●Phase 1 – original 32 FSS sites ●Phase 1A – redirected FSS sites  Starting operational planning for Phase 1A sites

 Redirection Plan is Complete ● Space reviews complete ● Workroom floor / machine layouts finalized  Communication plan in progress ● Assessment of stakeholder level of notification  Internal  External ● Message, timing & distribution Phase 1A Status – Redirection Plan

 Industry notification - resources ● MTAC Update ● RIBBs “All things FSS”  New FSS locations  Zone changes ● PCC Insider  Timeline for sharing Phase 1A Plan ● No later than the end of August Phase 1A – Industry Communication

National Postal Forum ® ®

NPF 2010 – Flats Track  Combined Flats Track again this year: “Flats Track for Periodicals, Catalogs and Printers”  Certificate program well received  Expand offering based on participant’s feedback ● Printers ● Catalogs  Reminder – “call for papers” ● Deadline – August 21 st

Conclusion