® Secure Destruction Service Sam Pulcrano Vice President, Sustainability MTAC Washington, DC February 17, 2010

® 2 Overview  Update of Activities Since April 2009  Program Overview  Next steps

® Efforts Completed  Expanded efforts surrounding cost analysis to provide Secure Destruction Service ●Developed estimate of potential volumes likely to participate in the Secure Destruction Service ●Surveyed potential suppliers capable of performing Secure Destruction Service to National Association of Information Destruction (NAID) standards  Drafted Overview of Secure Destruction Service  Performed proof-of-concept testing at Engineering to validate ability to provide service 3 Activities Since April 2009

® 4 Secure Destruction Service - Phase I  Initial target of First-Class letter mail only that would otherwise be returned to sender as UAA mail  Mail must bear Intelligent Mail barcode containing a Secure Destruction Service Type ID  Mailer must participate in either OneCode ACS or Full-Service ACS to receive notice of disposed mailpieces Overview

®  Mailpiece will be required to show a printed endorsement, e.g. “Secure Service Requested”, as a visual cue to processing clerk  Mail intended for Secure Destruction Service will be captured on postal automation during the Return to Sender operation and sorted to a separate bin destined for secure disposal  Processing clerk will manually scan all mail sorted to secure disposal bin to ensure proper sortation Overview Secure Destruction Service - Phase I

®  Commercial service providers will perform the Secure Destruction Service ●Must be National Association of Information Destruction (NAID) certified ●Required to provide a “Certificate of Destruction” on a periodic basis to the Postal Service ●Contractually obligated to operate transparently in comportment with industry standards ●All mail must be destroyed within United States Overview Secure Destruction Service - Phase I

®  Compliance with Secure Destruction Service policy will be monitored by United States Postal Inspection Service and Office of Inspector General ●Security assessment and compliance monitoring of postal procedures ●Periodic review of service provider activities ●Review of service provider documentation of employee security clearance ●Review of service provider certification process ●Investigation of complaints of mail theft Overview Secure Destruction Service - Phase I

®  Survey mailing industry for participation interest  Finalize business case based on forecasted mailer participation and cost to provide service  Develop implementation timeline and participation guide  Communicate availability of Secure Destruction Service to mailing industry Next Steps Secure Destruction Service - Phase I