1. 1 Intelligent MAIL ® in the U. S. Postal Service National Postal Policy Council May 25, 2006 Charles Bravo Senior Vice President Intelligent Mail & Address Quality Implementing

2. 2 Evolution in postal technology Helps business customers better manage their resources and reduce costs Provides real-time access to processing and delivery information What is INTELLIGENT MAIL? The use of one code to uniquely identify and allow end-to-end visibility into the mail stream.

4. 4 IN THE MOST SIMPLE TERMS

5. 5 WHY CHANGE? THE BENEFITS  Simplifies use of postal services  Frees up real estate on mail piece  Supports accurate collection of postage  Improved management of mailers’ business processes  Increased transparency (mail visibility)  Enhanced security while maintaining privacy  GROW REVENUE!

6. 6 Status of Mail Planned Induction Date/Time INTELLIGENT MAIL COMPONENTS Electronic Manifest or Pre-Shipment Notification First Automated Scan Delivery Scan Container Scans Last Automated Scan Actual Receipt Entry Scan “Starts the Clock” Actual Induction Date/Time TransportInductionProcessDelivery Mail Preparation Operations Information Value Mailpieces in Sorting Mail Available for Delivery

7. 7 OneCode Vision™ 6060 PRIMACY PKWY STE 201 MEMPHIS TN 38188-3333 IRENE PAYNE 6449 AMBERVIEW CV MEMPHIS TN 38141-8346 ADDRESS SERVICE REQUESTED PLANET Code for CONFIRM Service Presorted First-Class Mail U.S. POSTAGE PAID Washington, DC 20260 Permit No. 1 POSTNET Code for Sortation Address Change Service Codes #BWNGKVN #9999 9920 0104 276 Special Services Yesterday’s Mail Piece

8. 8 OneCode Vision™ A Mailpiece for Today A New Mailpiece for Today CHARLES E. BRAVO SR VP INTELLIGENT MAIL & ADDRESS QUALITY UNITED STATES POSTAL SERVICE 475 LENFANT PLZ SW RM 2100 WASHINGTON DC 20260-5500 “One code per mail type that points to a suite of services” First-Class Mail Postage & Fees Paid USPS Permit No. G-10 COMPUTERIZED FORWARDING SYSTEM UNITED STATES POSTAL SERVIICE 6511 BALTIMORE AVE HYATTSVILLE MD 20782-9988 Visibility & Special Services Address Quality Services CONFIRMService CONFIRM ServiceSortation

9. 9 Uses 4-state barcode symbology –Refers to 4 different positions of the bars within the barcode The code will: –Uniquely identify the sender –Uniquely identify the mailpiece –Provide a destination ZIP Code for sortation & routing –Encode Special Service indicators & Address Change Service (ACS) requests Barcode will be acceptable for automation discounts OVERVIEW/BACKGROUND

10. 10 Computer simulation – SUNY, LM & Omniplaner Encoder testing – 22 mailers Test deck – stress deck on specifications Move Validation Mail (MVL) Over 10 million mail pieces Read rate comparable to POSTNET Prudential Mail and American Express Tested over 1 million mail pieces Shorter height testing revealed no degradation for letters Letter height specification updated to between.134 and.230 Flats stress deck testing underway All Testing is Going Well TESTING TO ENSURE SUCCESS

11. 11 OneCode CONFIRM vs. CONFIRM Barcode Symbology4-StatePLANET Codes Unique Numbers 1 Billion 1 Million Can Combine ServicesYesNo Cost Same as CONFIRM Current CONFIRM pricing Available for all letter mail Sept. 2006

12. 12 National Application Servers Enterprise Data Warehouse USPS Mail Processing Infrastructure IMD USPS Associate Office Infrastructure USPS Wide Area Network 9 Areas 80 Districts 280 Plants 38,000 Facilities 300,000 IMD Scanners USPS National Data Stores Customer Data Centers District Servers Firewall DEVELOP ENABLING INFRASTRUCTURE

13. 13 Imager for barcodes –Reads 4-state, POSTNET, and PLANET barcodes –Captures image of signature Larger display –Color display –2” x 3” dimension Wireless capable –Bluetooth enabled –WLAN (802.11b) and WWAN (GPRS) expansion capability Full alpha-numeric keypad INTELLIGENT MAIL DEVICES

14. 14 ENCHANCE ADDRESS QUALITY Mailers expect the Postal Service to deliver their mail to the right destination and the right person the first time. Supporting Facts: In 2005, the Postal Service processed 212 billion mail pieces. Approximately 45 million change of addresses are filed each year Each year approximately 2 million addresses are added to the system.

15. 15 USPS FOCUS Overall improvement in Address Quality: Reducing UAA Increasing DPS percentage

16. 16 Pennsylvania New Jersey New York MOVE-RELATED UAA

17. 17 Common Address Quality Problems Missing Apt or Ste Number Incorrect Number Incorrect Recipient Missing Number Missing RR or Box Number Incorrect Street Name ACME PRODUCTS 4759 WESTERN ST NEW YORK NY 10022-5279 CARL SHULER 1414 LAKE ST APT CHICAGO IL 60614-1905 CARL SHULER 1914 LAKE ST APT 3A CHICAGO IL 60614-1910 CARL BROWN 1414 LAKE ST APT CHICAGO IL 60614-1910 CARL SHULER LAKE ST APT 3A CHICAGO IL 60614-1910 CARL SHULER PO BOX CHICAGO IL 60614-1910 CARL SHULER 1414 LARK ST APT 3A CHICAGO IL 60614-1910 PHYSICAL ADDRESS UAA

18. 18 ENHANCE ADDRESS QUALITY Services to keep up with movers: Existing: –NCOA Link™ –The most secure method to keep customer address information current. –Over 270 Licensees New: –OneCode ACS –Provides mailers with electronic address correction services without need of costly manual processing.

19. 19 OneCode ACS is available for First Class letter mail Sept. 1, 2006 ABC Company 123 Main St Memphis TN 38101-1234 Address Service Requested 6060 PRIMACY PKWY STE 201 INTELLIGENT MAIL & ADDRESS QUALITY MEMPHIS TN 38188 -0001- 2020 OneCode PKWY INTELLIGENT MAIL & ADDRESS QUALITY MEMPHIS TN 38188 - USPS Forward MVL testing for over a year Testing with multiple mailers PARS will allow standard mail to be offered late in 2007 OneCode ACS

20. 20 OneCode ACS vs. ACS Barcode Symbology4-StateNone Percent Electronic High 90’s 80-85% plus hardcopy Can Combine ServicesYesNo Response TimeHoursDays Cost 21¢ per record 21¢ per electronic record/75¢ per hard copy

21. 21 ENHANCE ADDRESS QUALITY Services to improve address quality: Just Launched: –Address Element Correction II (AEC II) –Allows mailers to submit bad addresses to USPS for correction. –Uses Delivery Force Knowledge™ –ANKLink –Provides mailers with information on addresses not known after the forwarding period concludes. –Over 20 Licenses have been issued.

22. 22 ENHANCE ADDRESS QUALITY Quality address information from movers: –Internet Change of Address – see www.usps.com –Telephone Change of Address – call 1-800 ASK - USPS –Movers Guide™ –Visit your Post Office

23. 23 INTERNET CHANGE OF ADDRESS

24. 24 11.9 Million ICOA’s Processed Electronically January 2002 – April 2006 INTERNET CHANGE OF ADDRESS

25. 25 ICOA PUBLICITY Last year, this story was featured in over 484 newspapers across the country reaching 39 million readers.

26. 26 THE LATEST MOVING INNOVATION Catalogers lose contact with customers during the move Consumers hyper-spend immediately following their move Catalogers miss the hyper-spending window Movers are interested in trying new catalogs Catalog Request Card

27. 27 INCREASING DPS PERCENTAGE Increasing the use of ICOA Promoting more DPV by mailers Encouraging mailers to use AEC I and II Using internal tools Launching Suite Link ™

28. 28 WHAT YOU CAN DO? Learn more about the 4-State Barcode –Rapid Information Bulletin Board System (RIBBS) web site (https://ribbs.usps.gov/onecodesolution/)https://ribbs.usps.gov/onecodesolution/ Encourage your customers to use ICOA at usps.com Learn more about our Address Quality tools –NCOA Link™, OneCode ACS, ANKLink, AEC I, AEC II Obtain a copy of the “Address Quality Methodologies- Best Practices.” It can be downloaded at: –https://ribbs.usps.gov/mtac.htm

29. 29 Identity: Unique ID across assets, containing or linked to customer IDs Unique Mailpiece ID (4-State, UCC EAN 128) 24-Digit Distribution Labels Truck/Trailers MTE License Plate Pallet / MTE Placard Airplanes D&R Tag Scans THE BIG PICTURE