1. 1 Gary Reblin and Jan Caldwell Intelligent Mail & Address Quality Intelligent MAIL ™ in the U. S. Postal Service MTAC February 5, 2004

2. 2 Intelligent Mail Strategies Vision Place one unique code on all mail allowing end-to-end visibility into the mailstream.  Develop and Deploy Enabling Infrastructur e  Enhance Address Quality  Uniquely Identify All Types of Mail

3. 3 LETTERS AND FLATS PROGRESS Determining capabilities for mailers and USPS to move to a new code –Mail Technology Study Widespread usage of high- speed IJP (2-D problematic) 2-D viable for meter and on-line users –4-state coding alternative more promising for permit mailers E.g., Data Matrix, PDF 417 2-D E.g., 4-State Barcode Height Modulated STRATEGY 1  Uniquely Identify All Types of mail

4. 4 LETTERS AND FLATS IBI Initiatives Underway –Development of AFCS-IBI Detection Research and Development – (2 –year timeframe) − Red ink creates some reading issues –IBI Revenue Protection Creates ability track mail pieces on equipment − New Hand Held Scanners read IBI Replace PLANET with a 4-state Code (Spring Test) –Under contract to upgrade letter sorting capabilities –Characters – 31 (includes: country ID (2), service ID (3), subscriber ID (6), unique ID (9), ZIP (11))

5. 5 FLATS ID CODE SORT Add ID Tag read/print capability to AFSM 100 flat sorters Ability to read 4-state and IBI Deployment complete in FY ‘05

6. 6 Leverage PLANET Code and PARS to Supply Mailers Notice Of Undeliverable-As-Addressed Mail Pieces Eliminates Separate Participant Code And Keyline to Obtain UAA Notification –Provide Electronic Notice To Mailer Planet ACS Update - Overview USPS CONFIDENTIAL RESTRICTED INFORMATION C/O BANK ONE Dulles VA 20200 ADDRESS SERVICE REQUESTED #BWNGKVN #9999 9920 0104 276# IRENE PAYNE 6449 AMBERVIEW CV MEMPHIS TN 38141-8346 38141-8346

7. 7 Pre-PARS (Electronic Return Notification Service): Electronic Notification Of Returned UAA Mailpiece –Individual Nixie Reasons Not Provided Post-PARS (Planet ACS): Electronic Notification of UAA Nixie Reason Codes Provided for Individual Mailpiece Forwarding Address for Moving Customer Information Provided To Mailer USPS CONFIDENTIAL RESTRICTED INFORMATION

8. 8 Pre-PARS: Return Mail Will Be Directed To Nearest Regional PARS Site –During Pilot All UAA Mail Will Be Sent To Central Processing Site Electronic UAA Notification Record Created using PLANET Barcode & Delivery Point Barcode (If available) –UAA Mail Piece Will Be Disposed Post-PARS: Read The PLANET/4-State Barcode –Provide Notification In Normal Course Of Processing The UAA Mail Piece How It Works With PARS USPS CONFIDENTIAL RESTRICTED INFORMATION

9. 9 Pilot Test Objectives Conduct Pilot Test At One P&DC To: Develop Operational Experience –Compare Results Manual Entry Of Participant And Keyline Information Obtain Mailer Feedback –Linking Electronic Notification To Originally Mailed Address Information Evaluate Accuracy Of Scanned Information Establish Plan For Expanding Mailer Participation USPS CONFIDENTIAL RESTRICTED INFORMATION

10. 10 Implementation Following Pilot Test Following Successful Pilot Test Evaluate Expansion To Regional P&DC Locations –Electronic Return Notification Service Slowly Expand Number Of Participating Mailers Incorporate USPS 4-State Barcode USPS CONFIDENTIAL RESTRICTED INFORMATION

11. 11 Thank you!