1. Postage Technology Management Dealer/Branch Certification AIMED CONFERENCE – May 29, 2003

2. DEALER/BRANCH CERTIFICATION How we came to today  Idea genesis over two years ago  Discussions with AIMED at conferences and other meetings  Discussions with Manufacturers at two prior Industry Meetings and separate meetings  Reviewed other regulated, government developed certifications  Reviewed other USPS certification programs

3. DEALER/BRANCH CERTIFICATION Issues  Need for standardized Meter Compliance and Security Criteria across industry  Need for objective, non conflict of interest compliance assessment and enforcement  Need uniform training across industry

4. DEALER/BRANCH CERTIFICATION Decision  The USPS has decided to develop and implement a Dealer/Branch Certification Program  Decision based on examination of what exists today, conditions identified, technology, and process improvements  Determination made that USPS and Industry need to strengthen uniformity in Dealer/Branch training, standards, and retention

5. DEALER/BRANCH CERTIFICATION Objectives  Enhance USPS revenue protection by improving meter security compliance  Establish USPS as centralized compliance authority  Strengthen ties among USPS, association and entire industry

6. DEALER/BRANCH CERTIFICATION Objectives  Avoid interference with Dealer/Manufacturer relationships  Protect Dealers’ customer base  Minimize costs  Maximize economies of standardization and uniformity

7. Three Fold Focus  Regulatory/Security Issues  New Processes  Postal knowledge equals ability to sell product DEALER/BRANCH CERTIFICATION

8. Regulatory/Security  Ensure that personnel “touching” meters are cognizant of, and comply with security regulations, thereby not exposing the USPS to any risk  Necessity to formalize, to a greater extent, professional and ethical performance by Dealers/ Branches and the responsibility to be shared by Manufacturers and the USPS for ensuring the same (to be added to the CFR) DEALER/BRANCH CERTIFICATION

9. New Processes  Secure funds transfers, installations, withdrawals  Increased efficiencies for Manufacturers and USPS  Greater convenience for our customers  Dealer/Branch employees primary customer interface  Increases need for Dealer/Branch employees to be well trained in USPS rules/information DEALER/BRANCH CERTIFICATION

10. Postal Knowledge  As the state of the art moves toward intelligent mail the need to standardize and strengthen the knowledge and professionalism of a group who represent the interests of the USPS and Manufacturers with over one million customers grows. We need to ensure that metered/IBI postage is presented in the best manner possible to maintain its viability as a mode of first choice for mailing needs. DEALER/BRANCH CERTIFICATION

11. Who to Certify ?  The Dealership/Branch  Sales and Service Personnel  Contractors/Contract Services  Home office and DDC employees who “touch” meters  Those who perform functions that could affect revenue security of the meter;  sales, repairs, audits/examinations, install/ withdrawal, shipping and receiving DEALER/BRANCH CERTIFICATION

12. How to Certify?  USPS will provide requirements and assessment review process  Focus will be on meter protection, inventory control, transportation and pick- ups  Will also have a security review/inspection as part of their certification  Reviews to be conducted in conjunction with Manufacturer Audits DEALER/BRANCH CERTIFICATION

13. Manufacturer Responsibilities  Develop or modify any training necessary  Maintain list of individuals and Dealers/Branches and certification date  Provide records to USPS as requested  Certification requirements to be part of Manufacturer- Dealer agreements DEALER/BRANCH CERTIFICATION

14. Manufacturer Responsibilities cont.  Conduct security review/audits to certify Dealer/Branches  Provide list of people requiring certification to USPS  Ensure that re-certification occurs as required  Provide oversight to employees needing retests  Report certification violations to USPS DEALER/BRANCH CERTIFICATION

15. Dealer/Branch Responsibilities  Be cognizant of certification requirements  Provide list of employees to be certified  Ensure that employees receive training as necessary  Ensure that only certified employees “touch” meters  Ensure that employees are re-certified as necessary  Report certification problems to Manufacturers DEALER/BRANCH CERTIFICATION

16. Administrative Items  USPS to review compliance during field visits/reviews  Logo or certificate signifying USPS certification to be developed and made available  CFR to be updated to include certification requirements  Annual summary of Dealer/Branch audits, including certification to be provided to PTM  Manufacturers and Dealers may be subject to sanctions for certification violations DEALER/BRANCH CERTIFICATION

17. Training Options  Training sessions/seminars offered in conjunction with Dealer/Manufacturer Conferences  Instruction  Presentations and materials  Train-the-trainer  On-sight  Local/regional  Training site  Self study  Web-based training  Interactive CD ROMs  Materials DEALER/BRANCH CERTIFICATION

18. Questions  Roles and responsibilities  USPS  Manufacturers  Dealers  AIMED  Funding  Training, testing, and audit design  Materials and planning development DEALER/BRANCH CERTIFICATION

19. Questions  Does Dealer/Branch continue to service customers if fails or loses certification?  Does certification cross manufacturer lines?  Certification continued or transferable if dealership canceled or sold?  Recourse, procedures in the event of failed test/certification?  Enforcement? What are ramifications if Dealer found out of compliance? DEALER/BRANCH CERTIFICATION

20. Next Steps  Roles and Responsibilities identified  Questions Answered  Actions assigned  AIMED/Mfr involvement in training and test development  Schedule and plan to be developed  Timeline to be developed DEALER/BRANCH CERTIFICATION

21. Opportunities  Possibility of reduced internal audit frequency  Possibility to lesson USPS oversight  Dealers enabled to more readily obtain parts from manufacturers  Cancelled dealerships may be able to continue to service meters and mailing bases