1. 1 MTAC Periodicals Focus Group Product Development August 15, 2012

2. 2 MTAC Meeting  Pulse Of the Industry  Periodicals at the National Postal Forum  Update Magazine Subscription access in USPSRetail Office’s and USPS.com  Update on PAG initiatives  Promotions Agenda:

3. 3 Pulse of the Industry  Migration to Digital Continues  24% growth in digital readership  Influx of apps for Smartphones and Tablets continues  Advertising News  Magazine ad pages decrease for 4 Qtr in row – down 8.5% in 2 nd Qtr  Some positive signs: ■ Top 3 business titles grew ad pages in first half 2012 ■ September issue fashion titles have ad gains  Other News  1.7% decline in print total audience  48 titles ceased and 133 titles were launched in first half 2012  Select titles are integrating augmented reality  USPS Volumes  Q1FY2012 - 6.4%  Q2FY2012 - 3.7%  Q3FY2012 - 3.1%  YTD Q3FY2012 - 4.4%

4. National Postal Forum  Working With Industry to create Agenda  Red Tag Meeting  Innovate, informative and entertaining sessions  Highlight Growing Publications - Rely on Industry Leaders  Impact of Technology on Business  Offer the “nuts and bolts” sessions  How to get Periodical approval  New launch applications,  New sales tools that the USPS is offering to grow Periodical advertisements  “Everything you wanted to know about Periodicals…but was afraid to Ask” Create a Focused Periodical Track at the National Postal Forum

5. Test Market Adoption in Select Retail Office’s Customer Scans QR Code to Subscribe Periodicals @ Retail Revenue Initiatives Enable access to potential new subscribers  USPS retail stores  USPS.com

6.  PAG Initiatives PAG Update  Requester Subscriber More than 75% Advertising  Supplement to Changes  eSubs qualifying for paid circulation  Elimination of Additional entry fees  Potential inclusion of alternative electronic media  Ability to include sealed envelopes

7.  PAG Initiatives (continued) PAG Update  ID Statement POSTMASTER ACS wording – Industry to come back with scaled back wording from what was proposed  Co-packaged publications – ways to eliminate inability of PostalOne! to process so mailers do not have to use manual work-around methods to create 3541s missing a piece charge  “Catalog” issue  24 piece sack requirement

8. PAG Update  The success of pay anywhere  The Catalog Issue (very controversial)  PostalOne! issues (hot)  Insert that have Wires  Bundle Sizes  Peter Moore's Findings  PAG Initiatives

9. ■ Series of promotions communicated upfront* ■ Lead industry, encourage best practices *BOG & PRC approval pending 2013 MAY-JULY CRM/BRM Earned Value -Financials, Catalogers, Publishers FEBRUARY-MARCH Coupons—Mobile Integration -Local & national retailers & businesses Click-to-Call -Insurance, Financial, SMB NOVEMBER-DECEMBER Buy-It-Now -Retailers, e-tailers & catalogers AUGUST-SEPTEMBER Emerging Technologies - Retailers, e-tailers & catalogers Samples -CPGs, Retailers Picture Permit -Existing customers 2013 Promotions Calendar (proposed)

10. Questions?