1. National Postal Policy Council

2. Celebrating our 25 th Year

4. NPPC promotes a continued and improved national postal system with quality service at an affordable price. NPPC views its mission as maintaining a trusted partnership with the USPS for the benefit of all Americans. This partnership between the USPS and NPPC seeks to drive continuous improvement. NPPC focuses primarily on its area of most expertise, First Class Mail, viewed as part of a healthy overall system. NPPC believes that a key element for the members' business success for the foreseeable future is a healthy national postal system. NPPC will continue to pursue its traditional mission of partnership and its operational focus. As to competitive or "non-traditional" new initiatives, individual member companies will take positions and actions appropriate to their business interests. Mission Statement

5. 2005 Estimated Mail Volume 20 Billion Pieces $6 Billion in Postal Revenues

6. Circle the Earth 109 times!!! If you placed all the mail pieces sent out last year by NPPC mailers...end to end… Earth to Moon & back 6 times!!!

7. A forum for addressing the system-wide and specific needs of first class mailers Work in a cooperative environment with other members and USPS Participate in the organized structure of committees, workgroups and plenary sessions NPPC Approach to MTAC

8. USPS to notify customers of future pending service standard changes USPS to publish EXFC scores on the web for public viewing Specifications document for a Business Mail Measurement System NPPC-Supported MTAC Outcomes

9. Current NPPC MTAC Goals Progress in Workgroup 94 toward standardizing reporting for performance measurement Meeting the USPS goal of reducing UAA mail by 50% Working with other first-class mailers toward surface visibility to track containers through postal system Developing through Workgroup 100 -- seamless acceptance for MLOCR environment

10. Regular reports from our MTAC Rep at Quarterly Meetings Forwarding materials and/or links to members Specific reports on topical issues to membership as a whole Communicating About MTAC

11. Source: USPS Strategic Transformation Plan NPPC Members

12. Impacts of Substantial Rate Increases Predictability – depress volumes − Decreases substantially deepen and accelerate with alternatives to postal system, such as online bill payment and presentment First class rates with and without postal reform − With reform – either bill – 10-year savings for large individual, business mailers in the $100 of millions − Smaller mailers: proportionately NPPC Recent Studies

13. Three Cases for Rate Increases Case 1: 10% inflation increase plus dynamic funding and 10-year mortgage less current payment Case 2: 10% inflation increase plus dynamic funding and escrow mortgage less current payment Case 3: 10% inflation increase plus dynamic funding and 40-year mortgage less current payment Data - January, 2005

15. National Postal Policy Council