® Intelligent Mail Measurement Readiness June 13, 2007 Full WG Meeting

 Intelligent Mail® Barcode (IMB) Read Deployment: Complete  Expansion of IMB to Flats: Complete (spec change in test)  Intelligent Mail Tray Label (pre-qualified mailers): Qtr 4 FY07  PARS Deployment: October 2007  Small Parcel Bundle Sorter Tracking System: October 2007  Intelligent Mail Tray Label available to all mailers: Qtr2 FY08  Surface Visibility Phase II: FY08  24 Digit Tray Label: FY08/09  IMB Mandate: CY09  Seamless Acceptance: CY09 Intelligent Mail Timeline

Letters - Automation Data Capture PointTechnologyTimelineBarrier Start the Clock: Induction Acceptance scans FAST Seamless Acceptance using Mail.dat / Web services Scan of Pallet & Container barcodes with SV devices In pilot 150 dock scanners deployed Mailer: willingness / enough sources to implement required barcodes and systems Full deployment of SV scanners Interim Scans: Inter-facility Intra-facility Transit Secondary arrival DU arrival Intelligent Tray barcodes & TMS Intelligent Mail barcode – 8 million per week IMVIS infrastructure (“data cop”) IMD IMVIS upgrade in June Seamless pilot + limited usage in summer 150 SV devices deployed Yard Mgmt - TBD 0 DU dock scanners (could use carrier IMD) Assess IMB mailer type / class Exit Scan: DPS Scan Intelligent Mail Tray barcode scan Intelligent barcodes IMD IMD fully deployed-SeptExit Scan: Is hybrid system necessary or is implied sufficient?

Flats - Automation Data Capture PointTechnologyTimelineBarrier Start the Clock: Induction Acceptance scans FAST Seamless Acceptance using Mail.dat / Web services Scan of Pallet & Container barcodes with SV devices In pilot 150 dock scanners deployed Mailer: willingness / enough sources to implement required barcodes and systems Full deployment of SV scanners Interim Scans: Inter-facility Intra-facility Transit Secondary arrival DU arrival Intelligent Tray barcodes & Tray Management System Intelligent Mail barcode – 7 million per week IMVIS infrastructure (“data cop”) IMD APPS & SPBS / AFSM IMVIS upgrade in June Seamless pilot + limited usage in summer 150 SV devices deployed Yard Mgmt - TBD 0 DU dock scanners (could use carrier IMD) Assess IMB mailer type / class Exit Scan: Incoming Secondary scan Intelligent Mail Tray barcodes or Bundles scans at DU FSS-DPS scan Intelligent barcodes IMD IMD fully deployed-Sept FSS – 2009 Exit Scan: Is hybrid system necessary or is implied sufficient?

Conceptual flow and scan events Bundle Scanning Scenarios Mailer 1 Manifest BMC P&DC DU/DDU Carrier-Route Presort Bundles Carrier-Route Presort Bundles Clerk performs scan upon distribution distribution to carrier case Carrier scans each bundle prior to casing Carrier-Route Presort Bundles Carrier-Route Presort Bundles Individual bundles for casing and delivery Carrier -Route Presort Bundles Carrier-Route Presort Bundles 4a 4a&b Carrier-Route Presort Bundles Mailer drops at BMC Mailer drops Mail at P&DC Mailer drops Mail at DDU "Start the Clock” ” ” DISTRIBUTION SCAN. Carrier “ IMB Casing Scan Mailer 3 4b IM Container Barcode – SV Carrier-Route Presort Bundles Individual bundles Carrier cases mail Carrier Individual bundles Distribution Clerk Individual bundles before distribution Distribution Scan IMB Casing Scan Any of the three scanning processes can occur with any of the three induction scenarios identified. IM Container Barcode – SV IM Container Barcode – IMD "Start the Clock” CASING SCAN DISTRIBUTION & CASING SCANS Clerk performs scan upon distribution distribution to carrier case and carrier Scans each bundle prior to casing Individual bundles before distribution Distribution Clerk

Parcels – Automation or Retail Data Capture PointTechnologyTimelineBarrier Start the Clock: Induction Acceptance scans EVS manifest POS Scan at plant, BMC or DU – retail scan 8125 (truck manifest) scan “Scan 5” EVS usage expanded 150 dock scanners deployed – limited BMCs IM Parcel barcode widely used Mailer participation: willingness / enough sources to implement required barcodes and systems Non-POS sites? Full deployment of SV scanners Interim Scans: Inter-facility Intra-facility Transit DU arrival Intelligent Mail Container barcode scan Intelligent Mail Parcel barcode scan at BMC APPS, SPBS scans IMD 0 DU dock scanners (could use carrier IMD) SPBS upgrade-Oct ‘07 Exit Scan: Delivery “DelCon” scan (or any special services scan) Intelligent barcodes IMD IMD fully deployed-SeptSize of label in relation to smaller packages

Forwards / Returns Data Capture PointTechnologyTimelineBarrier Start the Clock: Induction Forwarding/Return scans Original acceptance data: Seamless Acceptance EVS Redirection data: PARS (letters) CFS (letters / flats) Carrier event scan (parcels) First Class/Periodicals- available now CFS – May 1, 2007 PARS – Sept Customer adoption of new endorsement & field training  Data can be captured on letters, flats and parcels ●After identification, tracked same as non-UAA mail