® Confidential Property of the US Postal Service Growth Incentive Programs MTAC Meeting August 13, 2009

2 Saturation Mail Incentive  Incentive for growth during 1-year period (May 11, May 10, 2010)  Registration closed August 1  471 companies registered  23% of the potential volume  Applications still coming in from field  Currently 49 customers are certified  Focus on certifying baseline for all customers

3 Summer Sale  Incentive for growth during Summer period (July-Sept 2009)  Registration closed August 1  1,292 companies registered (65% of the potential volume)  569 customers are certified (30% of the potential volume)  Awaiting certification 364 customers  331 customers still negotiating thresholds  August 31 certification deadline

4 First-Class Mail ® Incentive Program

5 Incentive Program Description  20% rebate on incremental First-Class Mail for first quarter (October 1 – December 31)  Threshold volume will be determined by trend 2007 and 2008, and projected for 2009  Discounted price on average half way between First-Class Mail Presort and Standard Mail  Minimum 500,000 pieces in both 2007 and 2008  In accordance with the Postal Accountability & Enhancement Act, the First-Class Mail Incentive will undergo a 45-day review prior to implementation First-Class Mail ® Incentive Program

6 Timelines  BoG Meeting: August 4, 2009  Regulators review process begins: August 11, 2009  Invitation Letters: August 21, 2009  Website launch: August 21, 2009  Registration period: August 21 to November 1, 2009  First-Class Mail Incentive Program Period: October 1 to December 31, 2009 Send questions to: First-Class Mail ® Incentive Program