1. ® Mailers Technical Advisory Committee Washington, DC Jim Cochrane, VP Product Visibility Jim Wilson, Mgr Address Management May 25, 2011

2. ®  Q3 is showing significant migration to IMb  FS Mailer Certification has been suspended  Expanding Test Environment for Mailers (TEM) process  Commercial service scores continue to trend upward Operational Metrics Summary 2

3. ® 3 FY11 (October 2010 - May 2011) IMb Full Service

4. ® FY11-YTD Full-Service Production Trends Full-Service Customer Sites Approved For Production 48 Full-Service Postage Statements Finalized 363,206 Total Piece Volume for Full-Service 29,311,564 Note: Total Piece Volume for Full-Service includes Bound Printed Matter Oct 1, 2010 – May 13, 2011 4

5. ® FY11 (October 2010 - May 2011) Full-Service IMb 5

6. ® FY11 (October 2010 - April 2011) First-Class Mail Process Category IMb Full Service Volume Total Commercial Volume Percent IMb Full Service Letters & Cards 12,700,50426,644,14147.67% Flats26,440392,5866.73% Total12,726,94327,036,72747.07% 6 Note: Volume (000s) FY10 percentage IMb 28%

7. ® FY11 (October 2010 - April 2011) Periodicals Process Category IMb Full Service Volume Total Commercial Volume Percent IMb Full Service Letters36144,9610.80% Flats2,022,7874,149,86748.74% Total2,023,1474,194,82848.23% 7 Note: Volume (000s) FY10 percentage IMb 29%

8. ® Process Category IMb Full Service Volume Total Commercial Volume Percent IMb Full Service Letters9,576,66333,779,43528.35% Flats4,984,81014,484,46934.41% Total14,561,47348,263,90430.17% 8 Note: Volume (000s) FY10 percentage IMb 18% FY11 (October 2010 - April 2011) Standard Mail

9. ® FY11 (October 2010 - April 2011) Summary by Mail Class Mail Class IMb Full Service Volume Total Commercial Volume Percent IMb Full Service First-Class12,726,94327,036,72747.07% Periodicals2,023,1474,194,82848.23% Standard Mail 14,561,47348,263,90430.17% Total29,311,56479,495,45936.87% 9 Note: Volume (000s)

10. ® Full Service Volume has seen a 74% Growth From Q2-FY10 to Q2-FY11 Quarterly Volume Migration: POSTNET to IMb 10

11. ® Intelligent Mail vs. Full Service Volume Growth Q2 FY 11 is showing increase in IMb adoption from POSTNET bar code 11

12. ® Intelligent Mail vs. Full Service Volume Growth - Weekly Last 9 Weeks of data shows increase in IMb adoption from POSTNET bar code 12

13. ® National Composite First-Class PresortOvernightTwo-DayThree-Day Certified MailersDistricts Pieces Measured % On- Time Pieces Measured % On- Time Pieces Measured % On- Time QTR 210065139M91.80%206M84.80%316M89.40% QTR 1131229M84.40%61M88.80%114M85.80% % Increase over Qtr 1669.23%441.67%379.86%8.77%239.74%-4.50%176.60%4.20% PQ2 Service Performance Measurement SPM Metrics 13

14. ® FC Commercial Mail Volumes 14

15. ® Standard Commercial Mail Volumes 15

16. ® ? Commercial Mail Measurement Yield 16

17. ® Issues Moving Forward Irregularities  Barcode (pallet, tray, piece) ●Uniqueness ●Content/Construct quality  eDocumentation ●Nesting ●Intelligent Mail Range (IMR) vs. Piece Detail Record (PDR) ●Piece Barcode (PBC) – IDEAlliance (smaller record)  FAST appointment procedures  Scanning consistency  Redirects 17

18. ® Intelligent Mail® Container Barcode

19. ® Benefits  Increased visibility of containers within the USPS network  More consistent Start-the-Clock scans  Enhanced handling efficiency  Supports tray-to-container nesting Establishing MTAC workgroups on tray and container barcodes Intelligent Mail® Container Barcode

20. ®  National CAT/CETs have been identified for operational scenarios, established service standards, involving induction method, mail class, and preparation National CAT/CET 20

21. ® CET Matrix Type No Bundle Sort Needed 5-Digit / Scheme Container Bundle Sort Needed 3-Digit and Up Container Non FSS 17001600 FSS 11000800 Critical Entry Time (CET) Periodicals 21

22. ® Proposal for Resolving Periodical Issue with Full Service ACS 22

23. ® Issue  Inconsistent USPS performance in providing Full Service ACS notices to Periodical mailers ●Disparity between scanning performance for Change-of-Address and Nixie notices ●Diminished value from Full Service adoption  Cost impacts to mailer where Traditional ACS notice provided instead of Full Service ACS ●$ 0.26 per notice versus free 23

24. ®  IMb defaced preventing scanning in CFS  CFS scanning efficiency and efforts ●Scanner effectiveness ●More “clicks than beeps”  Poor barcode quality on mail piece prevents scanning Root Cause Assumptions 24

25. ®  Increase scanning efficiency for Nixie notices to match COA scanning results  Reduce volumes and cost of Traditional ACS notices provided to mailer  Create appropriate incentive for continuous quality improvement in mailer IMb quality Target Goals 25

26. ®  Comparative analysis of MERLIN results to scanning results to analyze scanner effectiveness  Full Service IMb / Traditional ACS cross-reference data analysis to evaluate geographical performance  CFS software update to drive scanning improvements  Evaluated potential to use mail processing scan performance to determine ability to read IMb  Lean Six Sigma effort to review end-to-end process and identify opportunities for improvement Efforts to Date 26

27. ® Current Periodical Scanning (Feb – Apr) 27

28. ®  Establish best CFS scanning performance of COAs for each magazine title in each Area and use as the baseline expected across the Area ●Combine Average and Median scores for each Area to determine baseline value to adjust all COA and Nixie charges ●Retain Area’s score when higher than combined Average or Median score ●Recalculate monthly using past 90-day results Proposal to Resolve Issue 28

29. ® Impact to Low Scan Rate Title Impact to Average Scan Rate Title 29

30. ® Impact to Average Scan Rate Title 30

31. ® Impact to Average Scan Rate Title 31

32. ® Adjusted COA Scan Percentages 32

33. ®  Treat any percentage above 90% at 100% to align with IMb readability requirements  Defer adoption of proposal to July 24 th or later to allow mailers to review process  Provide report showing impact by title Mailer Feedback 33

34. ® Address Quality Update 34

35. ® Overview  Federal Register Status ● MLNA / Move Update  Suite Link & CASS Cycle N  ZIP Code Realignments  RIBBS Status Address Quality Update 35

36. ®  Federal Register published September 2010  Comments received from mailing industry reviewed and evaluated in preparation of Proposed Final Rule that will be published June 2011  Establish 1-year grace period from date of Final Rule publication  Define Guide to Move Update as resource for mailers to use to understand Move Update  Mailing industry will have an opportunity to provide comments to Proposed Final Rule  Final Rule scheduled to be published August 2011 Address Correction / Move Update Changes Federal Register Proposed Rule 36

37. ® CASS Cycle N and Suite Link CASS & Suite Link® Update  94 CASS products/platforms certified for Cycle N – 44 % complete  33 MASS products/platforms certified for Cycle N – 50% complete  Suite Link printing requirement relaxed ●Suite number printing is optional on mailpiece ●DMM Advisory will be published informing new policy  Suite Link database contains 21 million records 37

38. ® DSMART Statistics Fiscal Year Business Delivery Points w/ Business Names % Complete Avg. Monthly Default Volume 20092,565,1961,653,16964.40%111,441,285 20102,598,3621,893,48672.90%108,996,982 2011 YTD2,642,2691,983,91075.10%109,725,828 CASS & SuiteLink® Update 38

39. ® Suite Link Statistics Fiscal Year Candidate Records Matched Match Rate 2007486,635,64412,906,4052.65% 20082,583,525,310103,016,2803.99% 20093,250,109,421160,676,4484.94% 20105,352,228,944288,570,8485.39% CASS & SuiteLink® Update 39

40. ® TRUE Suite Link® Requirements RUNNING IN A NON-CASS CERTIFIED MODE Return ZIP+4 & DPV Values from CASS Certified Address Matching Engine; NO CASS 3553 form generated DPV Values from CASS Certified Address Matching Engine; NO ZIP+4 Return CASS 3553 form These pieces are to be mailed at non-automation rates SuiteLink activated? CASS results indicate candidate for SuiteLink Processing (Hirise/Street Default Match)? A Default Match is in SuiteLink’s 9-Digit Table of Candidate Records Valid Business/Name field defined & populated (assumes it’s populated with Name Info that’ll appear on mailpiece)? Match found in SuiteLink? User Elected to use SuiteLink Updates *4 Records submitted for CASS Processing Perform ZIP+4 & DPV lookup From CASS Certified Address Matching Engine Call SuiteLink with EMDP of Default Address & Parsed Business/Name TRUE FALSE Perform CASS lookup with secondary info from SuiteLink FALSE Return ZIP+4 & DPV Values from CASS Certified Address Matching Engine; Return CASS 3553 form Piece qualifies for inclusion in mailing submitted for automation rate discounts FALSE 40

41. ® New CASS Schedule Alignment CASS Schedule Update ActivitiesSummer (Major) Announce CASS changes at Partners in Tomorrow (PIT) Meeting February 15, 2012 Finalize CASS Requirements – receive feedback from PIT, post PIT minutes and finalized requirements April 1, 2012 CASS Design and Development – begins with CASS Stage I file being posted Begins: May 31, 2012 Ends: June 10, 2013 CASS Testing / Certification – begins with CASS Stage II file being posted and submission of CASS tests Begins: July 31, 2012 Ends: June 24, 2013 DeployJune 24, 2013 41

42. ® May 14/15June AIS Products Build June 1Customers Notified if Impacted by ZIP Code Change June 4USPS Sort Plans Updated July 1External Customers Begin Using New ZIP Codes 2011 ZIP Code Realignments 4 new delivery area ZIP Codes being activated 6 ZIP Code boundary realignments 58,480 total number of deliveries impacted SCHEDULE ZIP Code Realignment 42

43. ® Approved ZIP Code Changes – June 2011 ZIP Code Alignment New ZIP Codes:  Triboro11211 to 1124911,455 deliveries impacted  Dallas75034 to 75033 13,795 deliveries impacted  Alaska99654 to 99623 3,303 deliveries impacted Boundary Realignments:  Appalachian 24740 to 24739 14,053 deliveries impacted  Seattle98055 to 98031 311 deliveries impacted  Seattle98058 to 98031 341 deliveries impacted  Seattle98011 to 98034 3,349 deliveries impacted 3 Digit Realignments:  Northern Florida32073 to 32244 296 deliveries impacted  Colorado/Wyoming81008 to 80817 814 deliveries impacted  Salt Lake City84084 to 84129 2,246 deliveries impacted  Salt Lake City84118 to 84129 9,089 deliveries impacted  Salt Lake City84119 to 84129 1,432 deliveries impacted 43

44. ® Migration to Electronic Product Fulfillment (EPF) ●NCOA Link Daily Delete - complete ●ACS – complete ●FFMUN – offered 5/18 ●AEC – Pilot testing began 5/20 ●CASS  EPF accounts offered 5/6  Stage II files targeted for 5/31  Manufacturers report completed 5/20 CD-ROM  Current for all products but FFMUN  Required for data submitted to USPS RIBBS Status RIBBS 44

45. ®  MITS / RITS application is now “viewable” only  New issues, calendar updates will require completion of a template through RIBBS@usps.gov ●Complete template for adding an issue or calendar updates ●Highlighted areas require completion  Passwords ●New requirements (8 characters minimum, must contain upper and lowercase, numbers, and special characters)  Contact RIBBS@usps.gov to obtain new password or change passwordRIBBS@usps.gov MITS MITS Status 45

46. ® MITS Templates Calendar Updates Add an Issue 46

47. ® Questions?