1. 1 BOOKLETS New Requirements for Automation & Machinable Letter Prices

2. 2 Overview – what led us here?  R2006 price increase for flat-size catalogs prompted shift to letter-size catalogs (e.g. “slim jims”)  Letters process on automation equipment at the rate of 10 pieces per second  Booklets (“slim jim” letter and digest-size) do not behave like enveloped pieces: ●Tend to jam equipment ●Can become significantly damaged ●Tabbing methods often insufficient  Pieces frequently moved to flat-sorters and manual operations: ●Reduce jam and damage rates ●Greater processing and delivery costs

3. 3 Overview – how did we react?  Extensive testing to determine which characteristics and combinations enable processing on the DBCSs (primary letter sorting machines): ●Phase 1 – controlled test in fall 2007 ●Mailer-supplied pieces – collaborated with industry in summer/fall 2008 ●Phase 2 – controlled test through fall 2008  Seven Characteristics Binding Cover Stock Size Tab locale, style, strength Thickness

4. 4 Test Results, Mailer-Supplied Pieces Mailpiece Damage – Tab Tear

5. 5 Test Results, Phase 2 Mailpiece Damage – Tab and Cover Tear

6. 6 Test Results TABS  Three tabs performed better than two tabs on all styles  Large tabs (at least 1.5 inches) performed better than small tabs  Nonperforated tabs sealed better than perforated tabs, which tended to burst PAPER  50-pound paper covers processed acceptably on some smaller and lighter pieces; at least 60-pound paper needed on most pieces SIZE  Pieces were problematic over 10.5 inches long or when weighing at or near 3 ounces

7. 7 Booklets Mailpiece Design  New standards for letter-sized booklets Federal Register published on April 15, 2009  General overview: ●Define standards for design, preparation, and sealing of machinable and automation letter-size booklets ●Describe minimum requirements and provide recommendations based on wide variety of test observations and several years of analysis ●Provide illustrations of new requirements ●Minimize mailpiece damage and maximize efficient processing ●Effective September 8, 2009

8. 8 Booklets Mailpiece Design  Booklets definition and illustrations: ●Multiple sheets of paper bound together on one edge to form a spine; may be perfect-bound or permanently fastened with staples or another method that creates a uniformly thick mailpiece. ●Larger booklets may be folded to letter-size so long as final mailpiece remains uniformly thick. ●Spiral bindings are not machinable and do not qualify for automation prices.

9. 9 Booklets Mailpiece Design – Physical Standards Dimensions and weight requirements for automation and machinable letter prices  Booklets: ●Height – 3.5 inches to 6 inches ●Length – 5 inches to 10.5 inches* ●Thickness – 0.009 inch to 0.25 inches ●Aspect ratio – within 1.3 to 2.5 ●Maximum weight – 3 ounces ●*Note: some booklet designs have shorter maximum lengths

10. 10 Booklets Mailpiece Design – Paper Requirements Paper:  Generally booklet covers must be made with a minimum paper basis weight of 60-pounds book-grade or equivalent.  Minimum basis weights are higher for some designs  DMM 201 Exhibit 3.15.4 lists minimum paper weights by design  DMM minimum paper basis weights are based on book- grade NOTE: Paper basis weight is based on the weight of 500 sheets of: 25 x 38 inch sheets of book-grade paper, 17 x 22 inch bond-grade paper, 20 x 26 inch sheets of cover-grade paper, 24 x 36 inch sheets of newsprint. For example, if 500 sheets of book-grade paper weigh 39 pounds, the paper is considered 39-pound book paper. Book Wt.Bond Wt.Cover Wt.Newsprint Wt. 39152135 40162236 50202745 55223050 60243355 70284064 75304168 80314473 90365082 100405691 1104460100 1285070116

11. 11 Booklets Mailpiece Design – Paper Requirements  Paper Conversion Example:  Mailing Standard: Minimum Paper Weight is 60 lbs  If the mailpiece cover is 55 lb newsprint that equals the minimum paper weight of 60 lbs book-grade.  If the mailpiece cover is 50 lb newsprint that does not equal the minimum paper weight of 60 lbs book-grade. NOTE: Paper basis weight is based on the weight of 500 sheets of: 25 x 38 inch sheets of book-grade paper, 17 x 22 inch bond-grade paper, 20 x 26 inch sheets of cover-grade paper, 24 x 36 inch sheets of newsprint. For example, if 500 sheets of book-grade paper weigh 39 pounds, the paper is considered 39-pound book paper. Book Wt.Bond Wt.Cover Wt.Newsprint Wt. 39152135 40162236 50202745 55223050 60243355 70284064 75304168 80314473 90365082 100405691 1104460100 1285070116

12. 12  Booklets may be designed with the spine or final fold at the bottom or on the leading edge. Booklets Mailpiece Design – Design and Sealing ↑ Spine ← Spine

13. 13 Booklets Mailpiece Design – Closure Method  Tabs: ●Three 1.5-inch tabs required on all booklets ●Non-perforated tabs required on all pieces ●Recommend white paper tabs ●Recommend 2-inch tabs on booklets over 2.5 ounces 1.5” - 2” width

14. 14  Glue Spot: ●May be used in lieu of tabs ●Must be placed within ¾” of the open edges Booklets Mailpiece Design – Closure Method

15. 15  Glue Line: ●May be used as cover-to-cover seals ●Must be placed along the entire edge and no more than ¾” from the open ends Booklets Mailpiece Design – Closure Method

16. 16 Booklets Mailpiece Design Simple-Spine Booklet:  Spine on bottom (longer) edge  Place two tabs on leading edge and one on trailing edge: ●Position lower leading tab 0.5 inch from bottom edge ●Position upper tabs 1 inch from top edge  May use 50-pound – 5” to 9”; 60-pound paper recommended  Must use 60-pound on pieces over 9 inches long

17. 17 Booklets Mailpiece Design Folded Booklet (“Quarter-Fold”):  Final fold on bottom (longer) edge; spine folded on leading edge  Place two tabs on leading edge and one on trailing edge: ●Position lower leading tab 0.5 inch from bottom edge ●Position upper tabs 1 inch from top edge  May use 40-pound; 50-pound paper recommended

18. 18 Booklets Mailpiece Design Spine-Right Booklet (Oblong):  Spine on leading (shorter) edge  Place two tabs on top edge and one on trailing edge: ●Position top tabs no more than 1 inch from left and right edge ●Position trailing tab no lower than the middle  May use 60-pound; 70-pound paper recommended  Must use 70-pound on pieces over 9 inches long

19. 19 Booklets Mailpiece Design Perfect Bound  Spine on bottom (longer) edge; non-perforated inner flap on top (upper edge)  Perfect bound or saddle stitched with a continuous glue line along flap preferred, minimum 1” glue spots acceptable if placed within ¾” of right and left edges:  Must use 80-pound paper

20. 20 Booklets Mailpiece Design New Standards for Booklet Automation and Machinable Letter Prices Federal Register – final rule Vol. 74, No. 71 / Wednesday, April 15, 2009 / Rules and Regulations http://pe.usps.com/FRN/Booklets.pdf EFFECTIVE DATE: September 8, 2009 Reminder!

21. 21 What about Folded Self-Mailers?  Postponed proposed Folded Self-Mailer rule  Established advisory team through MTAC leadership for further collaboration on mailpiece evaluation and testing  Utilize mailer-supplied test material, in addition to USPS controlled test designs  Target test completion by August 2009  Proposed rule in Fall 2009

22. 22 Questions