1. New Mailing Services Prices – May 11, 2009 – Updated March 30 Greater Cleveland PCC April 24, 2009

2. New Mailing Services Prices – May 11, 2009 – Updated March 30 2 PCSC - created November 27, 2004 Consolidated 5 RCSC’s San Francisco RCSC closed on December 30, 2004 Northern Virginia and Memphis RCSC’s closed on January 8 and 22 Chicago RCSC closed January 28, 2005 Pricing and Classification Service Center - PCSC

3. New Mailing Services Prices – May 11, 2009 – Updated March 30 3 One location to serve the entire country Provided customers with consistency of rulings and interpretation of DMM standards New National Customer Rulings Program Provides pre-production rulings for mailer’s who mail in multiple locations PCSC

4. New Mailing Services Prices – May 11, 2009 – Updated March 30 4 Periodicals Authorizations Nonprofit Authorizations Customer Appeals / Refund Requests Approvals for Exceptions to Mailing Standards National Customer Rulings Resolve Mail Classification Issues The PCSC Role

5. New Mailing Services Prices – May 11, 2009 – Updated March 30 New Mailing Services Prices May 11, 2009

6. New Mailing Services Prices – May 11, 2009 – Updated March 30 6 Mailing Services 89% total revenue  First-Class Mail  Standard Mail  Periodicals  Package Services  Special Services First-Class Mail: 58% Standard Mail: 31% Periodicals: 4% Special Services: 4% Package Services: 3%

7. New Mailing Services Prices – May 11, 2009 – Updated March 30 7 Mailing Services  Consumer Price Index (CPI) cap  Annual, predictable price changes  Announce in February and implement in May

8. New Mailing Services Prices – May 11, 2009 – Updated March 30 8 CPI Cap (12 month moving average) 2008 Cap 2009 Cap 2.9% 3.8%

9. New Mailing Services Prices – May 11, 2009 – Updated March 30 9 First-Class Mail Average +3.78% Product% Change Single-Piece Letters & Cards4.62 Presort Letters & Cards3.08 Flats3.83 Parcels2.57 International4.07

10. New Mailing Services Prices – May 11, 2009 – Updated March 30 10 First-Class Mail – Single-Piece  Letters: 44¢ (+2¢)  Flats: 88¢ (+5¢)  Parcels: $1.22 (+5¢)  Postcards: 28¢ (+1¢)  Unchanged:  Additional ounce  Nonmachinable surcharge

11. New Mailing Services Prices – May 11, 2009 – Updated March 30 11  Align auto and machinable letter characteristics  Provide choices  Optional 5-digit, 3-digit, and AADC preparation for auto letters  Maintain 2.2¢ incentive for 5-digit  No change in the additional-ounce prices for automation/presort letters, flats, and parcels First-Class Mail – Commercial

12. New Mailing Services Prices – May 11, 2009 – Updated March 30 12  Auto flats  Must use delivery point POSTNET barcode or Intelligent Mail barcode with delivery point routing code First-Class Mail – Commercial

13. New Mailing Services Prices – May 11, 2009 – Updated March 30 13 First-Class Mail International  Separate prices for Canada and Mexico  Canada:75¢ (+3¢)  Mexico: 79¢ (+7¢)  All other countries: 98¢ (+4¢)  No change to country groups

14. New Mailing Services Prices – May 11, 2009 – Updated March 30 14 Standard Mail Average +3.78% Product% Change Letters3.83 Flats2.31 Parcels and NFMs16.40 High Density / Saturation Letters1.25 High Density / Saturation Flats and Parcels2.23 Carrier Route Basic Letters, Flats, and Parcels4.31

15. New Mailing Services Prices – May 11, 2009 – Updated March 30 15  Align auto and machinable letter characteristics  Provide choices  Optional 5-digit, 3-digit, and AADC preparation for auto letters  Optional AADC preparation for machinable letters  Move Update compliance (January 4, 2010) Standard Mail

16. New Mailing Services Prices – May 11, 2009 – Updated March 30 16  Irregular parcels/NFMs (less than 6 ounces)  3-digit changes to SCF  ADC and MADC changes to BMC and MBMC  Origin entry – BMC prices limited to pallets – MBMC prices for other preparation  Drop ship entry – 5-digit, SCF, and BMC prices Standard Mail – Packages

17. New Mailing Services Prices – May 11, 2009 – Updated March 30 17  Machinable parcels/NFMs (6 ounces and over)  Origin entry – BMC prices limited to pallets – MBMC prices for other preparation  Drop ship entry – 5-digit and BMC prices Standard Mail – Packages

18. New Mailing Services Prices – May 11, 2009 – Updated March 30 18  Lower-than-average price increase: +2.9%  Lowered some pound rates to encourage more content Standard Mail – Catalogs

19. New Mailing Services Prices – May 11, 2009 – Updated March 30 19  Encourage volume growth  Additional pieces  Frequency  Incentives for new volume  4.0¢ flats  3.7¢ letters  One-year program  Enrollment through June 11, 2009 Standard Mail – Saturation Mail

20. New Mailing Services Prices – May 11, 2009 – Updated March 30 20 Periodicals Average +3.97% Product% Change Outside-County3.97 In-County3.80  No preparation changes  Free address correction service with full-service Intelligent Mail option

21. New Mailing Services Prices – May 11, 2009 – Updated March 30 21 Package Services Average +3.80% Product% Change Parcel Post (retail)4.45 BPM Flats-2.00 BPM Parcels2.50 Media Mail and Library Mail7.47  Simplify Parcel Post  Remove BMC designations, Local Zone, and nonmachinable surcharge

22. New Mailing Services Prices – May 11, 2009 – Updated March 30 22 Special Services  Average +3.84%  Certified Mail: $2.80 (+10¢)  Return Receipt: $2.30 (+10¢)  Annual Mailing Fees: $185 (+$5)  Confirm Service  New Bronze tier

23. New Mailing Services Prices – May 11, 2009 – Updated March 30 23 Full-Service Intelligent Mail  Immediate benefits in May  Free Address Correction Service  Start-the-clock information  Full-service prices (November 29)  0.3¢ less for First-Class Mail  0.1¢ less for Standard Mail, Periodicals, and Bound Printed Matter flats  Long-term benefits  Actionable information – Operations, marketing, and finance  Paperless documentation

24. New Mailing Services Prices – May 11, 2009 – Updated March 30 24 Changes to Original Proposals  Move Update noncompliance charge of 7 cents per piece for Standard Mail delayed until January 2010  First-Class Mail must have used an authorized Move Update method for discount prices  Noncompliant Standard Mail – Mailers must still comply with Move Update but we will work with mailers to bring into compliance – do not assess additional postage  Merlin (PBV PostalOne!) verification process will not be used until January 2010

25. New Mailing Services Prices – May 11, 2009 – Updated March 30 25 Changes to Original Proposals  Mandatory First-Class Mail flats tray base requirement – not implemented (Current standards apply)  New tabbing/sealing requirements for booklet-type mailpieces at auto letter prices delayed – Not implemented at this time. Final rule will be implemented in September 2009  Current standards will apply for folded self-mailers; recommendations will be implemented in September 2009  Retain current minimum thickness standards for automation letters

26. New Mailing Services Prices – May 11, 2009 – Updated March 30 26 For Mailpieces that do not meet the flexibility criteria, but are able to demonstrate compatibility with Postal processing equipment. Only after pieces have been tested and given PCSC approval. Eligibility For Flats That Are Not Flexible - (Effective May 2009)

27. New Mailing Services Prices – May 11, 2009 – Updated March 30 27 Current standards applicable to automation flats will be extended to all flat-size mail Includes saturation carrier route flats. Polywrap Standards (effective May 2009)

28. New Mailing Services Prices – May 11, 2009 – Updated March 30 28 Polywrap selvage will be included when measuring maximum length and height of a mailpiece Polywrap selvage will not be included when measuring minimum length and height of a mailpiece Redefine Dimensions for Flat-Size Mailpiece (Effective May 2009)

29. New Mailing Services Prices – May 11, 2009 – Updated March 30 29 Extend the deflection standards currently applicable to automation flat-size mail to all flat- size mailpieces except saturation carrier route prices. All flats tested with the length placed perpendicular. One inch less vertical droop Deflection Standards (Effective May 2009)

30. New Mailing Services Prices – May 11, 2009 – Updated March 30 30 Eliminate bundling requirements for First-Class Mail commercial flats. New tray based preparation. Prices based on sort level of the tray. Minimum pieces per tray changed from 90 to 50 Flat-size Mail Preparation (Effective May 2009)Flat-size Mail Preparation (Effective May 2009) Flat-size Mail Preparation (Effective May 2009)

31. New Mailing Services Prices – May 11, 2009 – Updated March 30 31 Merge standards for nonautomation and automation flats. Foldable to a height no greater than 5” Loose inserts less than 75% of the size of the host, limited to single ply unfolded card. New Irregular Flats category Eliminate NFM category Proposals For May 2010

32. New Mailing Services Prices – May 11, 2009 – Updated March 30 32 New address standards for flats (went into effect March 2009) specify:  Address location  Address format New Address Placement Standards

33. New Mailing Services Prices – May 11, 2009 – Updated March 30 33 Prior – ManualCurrent – FSS New Address Placement Standards

34. New Mailing Services Prices – May 11, 2009 – Updated March 30 34 The new address location standards apply to these presorted, automation, and carrier route flats:  Periodicals  Standard Mail  Package Services — Media Mail, Library Mail, and Bound Printed Matter New Address Placement Standards

35. New Mailing Services Prices – May 11, 2009 – Updated March 30 35 Address location:  Address must be in top half of mailpiece.  When the address is on an insert polywrapped with the host piece, the address must remain within the top half throughout processing and delivery. New Address Placement Standards

36. New Mailing Services Prices – May 11, 2009 – Updated March 30 36 Bound edge on right John Doe 123 Main St Anywhere, USA 12345 John Doe 123 Main St Anywhere, USA 12345 Can face left or right John Doe 123 Main St Anywhere, USA 12345 Can be left or right justified, or centered John Doe 123 Main St Anywhere, USA 12345 Cannot read upside down Top Half Bound edge on right Top Half New Address Placement Standards

37. New Mailing Services Prices – May 11, 2009 – Updated March 30 37 The top is:  Either of the shorter edges on enveloped or polywrapped pieces.  The upper edge when the spine is placed on the right- hand side of an unenclosed piece.  Either of the shorter edges on CR or ECR saturation pieces. New Address Placement Standards

38. New Mailing Services Prices – May 11, 2009 – Updated March 30 38 “Vertical” address may cross midpoint if it begins or ends within 1 inch of top edge. New Address Placement Standards John Doe 123 Main St Anywhere, USA 12345 Small flat Important for digests and other small flats.

39. New Mailing Services Prices – May 11, 2009 – Updated March 30 39 On a horizontal envelope (a “landscape” mailpiece), the “top” is the left or right edge. New Address Placement Standards John Doe 123 Main St Anywhere, USA 12345 Top Half Sender 123 Main Street Anytown US 12345

40. New Mailing Services Prices – May 11, 2009 – Updated March 30 40 * DMM 707.19.2, 335.2, 365.2 Arranging Pieces in a Bundle ("Facing") “…all pieces in a bundle must be "faced" (arranged with the addresses in the same read direction), with an address visible on the top of the piece.” *This will be changed to allow the address to read any way as long as the address on the piece is the same top half in bundle. Flat Address Change Addressing In Bundles

41. New Mailing Services Prices – May 11, 2009 – Updated March 30 41 Address format:  All commercial flats must be addressed using at least 8- point type (each letter or figure must be at least 0.080 inch high).  Flats using POSTNET or Intelligent Mail barcode with a delivery point routing code may use 6-point type (each letter or figure must be at least 0.065 inch high) if the address is printed in all capital letters. New Address Format Standards

42. New Mailing Services Prices – May 11, 2009 – Updated March 30 42 Address format:  Sans-serif font preferred (Arial, Helvetica).  All capital letters preferred. New Address Format Standards

43. New Mailing Services Prices – May 11, 2009 – Updated March 30 43 Additional standards for automation pieces:  Address characters cannot overlap. Address lines cannot touch or overlap (0.028-inch clearance preferred).  Address elements may be separated by no more than five blank spaces. New Address Format Standards

44. New Mailing Services Prices – May 11, 2009 – Updated March 30 44 Resources  USPS.com/prices  New Price List  Downloadable price files  Federal Register notices  Postal Explorer (pe.usps.com)  DMM Advisory (dmmadvisory@usps.com)  PCC Insider (pccinsider@usps.com)  MailPro (usps.com/mailpro)