1. Flats Sequencing System Update Mailers Technical Advisory Committee MTAC May 16, 2007 Mailers Technical Advisory Committee MTAC May 16, 2007

2. 2 Agenda  FSS Development / Deployment Timeline  FSS Deployment Update  MTAC Workgroup Update

3. 3 Multi-phase / Development Deployment  Prototype – Indianapolis INApr 2006  BOG Approval / 100 FSS MachinesDec 2006  Pre-production Install – Dulles P & DCJun 2007  Pre-production – Live OperationsOct 2007  Production First ArticleJul 2008  Phase 1 Deployment BeginOct 2008  Phase 1 Deployment EndOct 2010

4. 4 Phase 1 Deployment Plans  29 Districts  32 Processing Facilities (FSS Locations) ●27 Existing Processing Centers ●5 New Facilities  2 - 5 Systems per Facility  1,500 Zones

5. 5 Phase 1 FSS Volume / Zones Phase 1 FSS Volume – 28 million 28% Full-up FSS Volume 100 million Average Daily Volume Phase 1 FSS Zones – 1,500 21% Full-up FSS Candidate Zones 7,000

6. 6 Phase 1 FSS Deployment Sites AreaDistricts # FSS Plants / Facility NYM Northern NJ Long Island NY Central NJ 433433 NJ BMC Mid Island NY P & DC Trenton NJ P & DC NE Boston Massachusetts Connecticut SE New England 34533453 Northwest Boston P & DC Middlesex Essex P & DC Springfield BMC Providence RI P & DC EAColumbus3Former Columbus P & DC SE South Florida Atlanta Central Florida 52245224 New Miami Facility Project Atlanta AMC North Metro GA P & DC Orlando P & DC WE Colorado / Wyoming Arizona Mid America 552552 Denver P & DC New West Valley (Phoenix) Facility Project Kansas City P & DC

7. 7 Phase 1 FSS Deployment Sites AreaDistricts # FSS Plants / Facility PA Los Angeles Sacramento Bay-Valley/San Francisco Sierra Coastal Santa Ana San Diego 234452234452 Herb Peck Annex Sacramento P & DC San Jose P & DC Van Nuys Main Office New Aliso Viejo Facility Project New Perris DPC Facility Project CM Greensboro Northern VA Richmond Capital 2244222442 Raleigh P & DC Greensboro P & DC Dulles P & DC New Richmond Facility Project Curseen-Morris P & DC GL Greater Indiana Northern IL Central IL Southeast MI 232222232222 Indianapolis MPA Palatine P & DC Carol Stream P & DC Fox Valley P & DC South Suburban P & DC New Royal Oak Facility Project

8. 8 Agenda  FSS Development / Deployment Timeline  FSS Deployment Update  MTAC Workgroup Update

9. 9 Mailing Industry Impacts 1. Increase Customer-Applied Delivery Point Barcodes 2. Improve Address and Barcode Readability 3. Evolving Standards for Machinability 4. Standard Address Placement 5. Match Mail Preparation Requirements to Processing Needs 6. Changes in Entry Points and Critical Entry Times

10. 10 MTAC Workgroups / FSS 1. Workgroup 101 Standard Address Placement ● Final Report Submitted January 2007 ● Sunset Workgroup February 21, 2007 2. Workgroup 113 - Address / Barcode Requirements for Flats sequencing System (FSS) ● Image Analysis Update ● Development of Flats Automation Template 3. Workgroup 115 - Preparation and Entry of Flat Mail in the FSS Environment ● Analysis on volumes that can be bundled to the zone/scheme make-up

11. 11 MTAC / USPS Flats Symposium  Get an update on the vision for the future of flats processing that includes the new Flats Sequencing System (FSS)  Hear an exchange of ideas between mailing industry and USPS representatives about impacts and issues related to implementation of this vision  Gain an understanding about what your organization needs to do to get ready for the new world of flats processing  Have an opportunity to ask questions and provide input related to the implementation of the flats vision. May 17, 2007

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