1. Financial Results for First Quarter of FY 2011 February 16, 2011

2. 2 Q1 Financial Summary  Net Loss of $0.3 Billion in Q1 FY 2011.  Operating Revenue $0.5 Billion Below SPLY.  Operating Expenses $0.1 Billion Above SPLY.  Mail Volume Increase of 1.5% in Q1 FY 2011.  Total Revenue Impacted by First-Class Mail Decline.  International Mail and Parcel Select Mail Growing in Q1 FY 2011.  Workhours Reduced by 6.4M or 2.1% Compared to SPLY.

3. 3 * Non-Cash adjustments to workers’ compensation liability Financial Results First Quarter - FY 2011 & 2010

4. 4 20.0B 23.8B 1.9B 0.2B 0.4B 46.0B Major Components Volume First Quarter - FY 2011 & 2010 Volume vs. SPLY = +1.5%

5. 5 $8.8B $5.0B $0.5B $0.4B $2.6B $15.3B Major Components Revenue First Quarter - FY 2011 & 2010 Revenue vs. SPLY = -2.6%

6. 6 Workhour and Volume Changes First Quarter – FY 2011 46.4B 58.3M 39.6M 102.7M 44.5M 37.3M 297.1M 14.7M

7. 7 Expenses First Quarter - FY 2011 & 2010

8. 8 Available Liquidity / Cash - Monthly Debt at $15 B limit for FY 2011. Excludes Restricted Cash (Inspection Service’s Recoveries) of approx. $200M FY 2011 Plan: $6.4 B loss FY 2012 Plan: $7.5B loss

9. Financial Results for First Quarter of FY 2011 February 16, 2011