1. Workgroup # 96 Developing An Interface To The AFSM 100 Automatic Induction Process POSTAL CO-CHAIR DAVE WILLIAMS INDUSTRY CO-CHAIR MIKE WINN

2. INTERFACING WITH THE AFSM-AI Slide 2 MTAC 96, Washington DC, February 23, 2006 WORKGROUP OBJECTIVES Develop Innovative Preparation Techniques To Facilitate Transition To New Induction Device Create A Roadmap For The Future Identify Problems Offer Solutions Consider Linkage to Flats Sequencing System (FSS) Minimize Costs In The End-to-end Process

3. INTERFACING WITH THE AFSM-AI Slide 3 MTAC 96, Washington DC, February 23, 2006 OVERVIEW

4. INTERFACING WITH THE AFSM-AI Slide 4 MTAC 96, Washington DC, February 23, 2006 AUTO INDUCTION STATUS Ai Deployment Schedule Purchased 206 ai Systems for 59 Sites Deployment: October 29, 2005 – September 30, 2006 Install 6 Systems Per Week Starting February 25 Ai is Operating Within the Following Postal Plants: Southern Maryland MDSt. Louis MO Pittsburgh PABirmingham AL Richmond VAJacksonville FL Buffalo NYNorth Metro GA Dayton OHLos Angeles CA

5. INTERFACING WITH THE AFSM-AI Slide 5 MTAC 96, Washington DC, February 23, 2006 MTAC Meeting - February 22, 2006 Bundle Cost Analysis Examined 3 Alternatives to Counter Stacked Bundles Uncompensated Bundles with Fewer Pieces Flats Presented Loose in Flat Trays Flats Presented Loose in Automation Compatible Trays (ACT) Conclusions Alternatives Provided Insignificant Savings Need to Align Preparation with Machine Needs

6. INTERFACING WITH THE AFSM-AI Slide 6 MTAC 96, Washington DC, February 23, 2006 AUTOMATION COMPATIBLE TRAY (ACT) AUTOMATION COMPATIBLE TRAY

7. INTERFACING WITH THE AFSM-AI Slide 7 MTAC 96, Washington DC, February 23, 2006 Dolly Docks A “Dolly” is a Low Platform on Casters to Move Loads Northrup Grumman Prototype One Dolly Supports 3 Tiers of 4 ACT (12 ACT Per Dolly) Clearance Under Dock for Forklift Tines Top Cap Enables Stacking and Nesting of Dollies Dolly Conveyor Removes Column of 3 ACTs at AFSM-ai

8. INTERFACING WITH THE AFSM-AI Slide 8 MTAC 96, Washington DC, February 23, 2006 Dolly Dock Test Purpose – Identify Container and Mail Flow Issues From Mailer to Postal Service Plan Harte Hanks Fills 12 ACT and Loads 10 Dollies (12,000 flat pieces) Harte Hanks Transports Dollies from Wilkes Barre PA to Southern Maryland for Induction into AFSM 100 Test Period – 4 Weeks Beginning May 10, 2006

9. INTERFACING WITH THE AFSM-AI Slide 9 MTAC 96, Washington DC, February 23, 2006 Next Steps Telecon – March 24, 2006 – 9:00 EST Review Savings from Eliminating Postal Flat Prep and Bypassing APPS Next MTAC Meeting – May 17, 2006 – 8:00 to10:00 Field Trip to Southern MD– May 18, 2006 afternoon Observe Induction of ACTs from Dolly Docks

10. INTERFACING WITH THE AFSM-AI Slide 10 MTAC 96, Washington DC, February 23, 2006 QUESTIONS ?