1. ® FSS Update Rosa Fulton Executive Director, FSS MTAC General Session November 18, 2009

2. MTAC General Session, November 18, 2009 2 FSS Update  Flat Volume FY 2009 & Trend  FSS Ramp-up & Operations  Installations – Next  Redirection Update Agenda

3. MTAC General Session, November 18, 2009 3 FSS Update Flat Volume by Class FY 2009 RPW -15.3% -7.4% Flat volume decline FY 2009 -13.8% 6.3 bil pieces Flat volume decline FY 2009 -13.8% 6.3 bil pieces

4. MTAC General Session, November 18, 2009 4 FSS Update Flat Volume Trend RPW Flat volume decline FY 2009 -13.8% FY 2005 – FY 2009 Flat volume decline 26% 14.3 billion fewer flats annually FY 2005 – FY 2009 Flat volume decline 26% 14.3 billion fewer flats annually

5. MTAC General Session, November 18, 2009 5 FSS Update  Sequencing Operations ● Dulles – 4 FSS ● Columbus – 2 FSS ● Kansas City – 2 FSS ● Phoenix – 3 FSS Operations & Installations  Installation of 14 FSS in progress

6. MTAC General Session, November 18, 2009 6 FSS Update FSS Operations – Ramp-up Status FSS Site # FSS On-line # Delivery Units On-line # Zones On-line Dulles P&DC 43952 Columbus FSS Annex 22436 Kansas City P&DC 21844 Phoenix (West Valley) L&DC 3827 Totals 1189159

7. MTAC General Session, November 18, 2009 7 FSS Update Installations – 14 FSS, 9 Sites Area FSS Location Install Start % Complete Install CM CURSEEN-MORRIS DC P&DC 12-Sep-0990% NE NEW JERSEY NDC 12-Sep-0995% NE MID-ISLAND NY P&DC 26-Sep-0965% NE NEW JERSEY NDC 26-Sep-0955% NE NW BOSTON MA P&DC 10-Oct-0945% SE ORLANDO FL L&DC 10-Oct-0920% PA VAN NUYS CA FSS ANNEX 24-Oct-0910% SE SOUTH FLORIDA L&DC 24-Oct-0910% EA TRENTON NJ P&DC 7-Nov-095% SE SOUTH FLORIDA L&DC 7-Nov-095% GL INDIANAPOLIS IN MPA 21-Nov-09 NE MID-ISLAND NY P&DC 21-Nov-09 NE NW BOSTON MA P&DC 5-Dec-09 SE ORLANDO FL L&DC 5-Dec-09 Install schedule of next 25 FSS in progress

8. MTAC General Session, November 18, 2009 8 FSS Update FSS Redirection – New Deployment Plan  19 FSS planned for redirection ● Deploy fewer FSS in 10 sites  Two sites removed from original plan  12 new FSS sites  42 FSS sites versus 32

9. MTAC General Session, November 18, 2009 9 FSS Update Phase 1A (Redirect Sites) Space Planning FSS Site# FSS Linthicum MD IMF1 Charlotte NC L&DC1 Rochester NYL&DC2 Philadelphia PA NDC1 Philadelphia PA P&DC2 Mid Island NY P&DC1* Westchester NY P&DC1 Stamford CT P&DC1 North Metro GA P&DC2 Atlanta GA L&DC2 North Houston TX P&DC1 Minneapolis / Eagan P&DC2 San Diego P&DC2 * Mid-Island receiving 4 th FSS

10. MTAC General Session, November 18, 2009 10 FSS Update Conclusion

11. MTAC General Session, November 18, 2009 11 FSS Update