® H. Glen Walker Chief Financial Officer & Executive Vice President FINANCIAL UPDATE Mailers’ Technical Advisory Committee Meeting August 1, 2007

FINANCIAL UPDATE +0.2%161.5BTotal All Mail -0.3%879MPackage Svc. -2.4%696MPriority -1.3%42MExpress -2.7%6.7BPeriodicals +1.8%78.3BStandard -1.3%73.4BFirst-Class SPLY Change Qtr 3 YTD -1.3% +0.8% -2.8% -0.5% -0.9% -1.3% 51.4B 258M 215M 14M 2.3B 24.6B 23.6B Qtr 3 SPLY Change Volume Performance

FINANCIAL UPDATE First-Class Mail Volume FY 2005FY 2006FY 2007 % SPLY 8 Quarter Moving Average Growth Rates

FINANCIAL UPDATE Priority Mail Volume FY 2005FY 2006FY 2007 % SPLY 8 Quarter Moving Average Growth Rates

FINANCIAL UPDATE Express Mail Volume FY 2005FY 2006FY 2007 % SPLY 8 Quarter Moving Average Growth Rates

FINANCIAL UPDATE Periodicals Volume FY 2005FY 2006FY 2007 % SPLY 8 Quarter Moving Average Growth Rates

FINANCIAL UPDATE Standard Mail Volume FY 2005FY 2006FY 2007 % SPLY 8 Quarter Moving Average Growth Rates

FINANCIAL UPDATE Package Services Volume FY 2005FY 2006FY 2007 % SPLY 8 Quarter Moving Average Growth Rates

FINANCIAL UPDATE Total First Class Flat Volume versus SPLY: Growth Rates

FINANCIAL UPDATE Total First Class June 2007 Volume versus SPLY: Growth Rates

FINANCIAL UPDATE Total Standard Flat Volume versus SPLY: Growth Rates

FINANCIAL UPDATE Total Standard Weight per Piece: Growth Rates

FINANCIAL UPDATE Total Standard June 2007 Volume versus SPLY: Growth Rates

FINANCIAL UPDATE Total Standard Rate Changes R LettersFlats Regular4.3%22.9% Nonprofit Regular1.8%36.4% ECR3.9%7.4% Nonprofit ECR-3.4%14.7%

FINANCIAL UPDATE Total First-Class Rate Changes R Letters 5.2% Flats17.2% Parcels21.1%

FINANCIAL UPDATE Total All Mail Package Svc. Priority Express Periodicals Standard First-Class 50.4B 283M 192M 12M 2.1B 24.9B 22.5B Qtr % -3.9% -10.1% -12.4% -4.0% -2.8% SPLY Change Quarter 4 Volume Outlook

FINANCIAL UPDATE Total Mail Volume per Workhour FY * YTD June 22 Million New Delivery Points Added During This Period

FINANCIAL UPDATE Total Workhours – March 31 thru July 20

FINANCIAL UPDATE Total Overtime – March 31 thru July 20

FINANCIAL UPDATE Total Factor Productivity Qtr 3 YTD Qtr %Total Factor Productivity+1.8% -1.2%Resources-2.1% +0.3%Workload-0.2% Qtr 3 YTD SPLY +0.5% +0.6% +1.2%

FINANCIAL UPDATE FY 2007 Debt through Quarter 3 YTD Beginning Debt $2.1 Payment of Debt -$2.1 Ending Debt $0.0 ($ Billions)

® H. Glen Walker Chief Financial Officer & Executive Vice President FINANCIAL UPDATE Mailers’ Technical Advisory Committee Meeting August 1, 2007