Intelligent Mail ® Full-Service MTAC May 19, 2010

FY2009 – FY2010 (As of April 23, 2010) Total Customer Sites Approved for Production 384 Finalized Postage Statements163,439 Volume15,110,945,736 Revenue$ 4,126,863,196 Intelligent Mail ® Program Status

Full Service Volume Intelligent Mail ® Program Status

Barcode retirement in May 2011  May 2011 –POSTNET™ retired for automation rates –PLANET Code ® barcode retired POSTNETIntelligent Mail Barcode Intelligent Mail ® Timeline

2010 United States Census  Largest mailing to utilize Full Service Intelligent Mail®  500 Million Full Service Mailpieces  Unprecedented Visibility for Census and USPS

Census 2010 – Container Visibility

Census 2010 – Delivery Visibility

9 Mailer Compliance Findings 134,417 containers processed 62 errors per 100 containers (no change from last wk): High Performers (Container Level): Bank of America, Netflix, Dingley Press 2,147,844 handling units processed 18 errors per 100 handling units (+3 from last wk): 806,267,722 pieces processed 11 errors per 100 pieces (+1 from last wk): High Performers (Handling Unit Level): Netflix, Freedom Graphics, World Marketing High Performers (Piece Level): Quad Graphics, Harte-Hanks Notes: Errors are not mutually exclusive; one container/HU/piece may have multiple types of errors. Appointment errors may be resolved after postage statement finalization.

10 Other Top Mailer Compliance Findings Container / FAST Appointment Association  54.2% for trailing 3 weeks  Challenges: Third party logistics, small/new/local mailers  Top performers: Brown Printing Company – Greenville (98.5%), Dingley Press (96.4%), Quad Graphics – Martinsburg (93.2%), Quad Graphics – Sussex (91.5%) Note: This association evaluation includes containers only (orphan handling units are not included).

Full Service Compliance Issues  Full Service Containers not associated with Appointments  Invalid Mail Owner/Mail Preparer Identification  Errors in Customer Service Agreements (CSA)  Invalid Mailer ID  Invalid Service Type Identifier  Non-Unique Mailpiece, Handling Unit, Container barcodes PostalOne! Release 25 (Nov. 7, 2010)

Full Service eDOC Verification Process Mailer Submits eDOC eDOC File Checks Postage Statement Finalized Full Service eDOC checks Barcode Uniqueness Mailer IDs, Service Type, By/For FAST/CSA Results in MicroStrategy reports Provide FS Assessment Report Notify Mailer via & PO! Dashboard Allow payment or reconciliation Track error reports and payments

 Provide access for mailer to monitor Full Service errors  Reports available in MicroStrategy Mail Quality reports, generally, within 48 hours after statement(s) finalized  Errors updated with the results from finalized statement(s) for a job.  As appointments are scheduled in FAST, the SASP system will reevaluate missing appointments and update Mail Quality reports Full Service eDOC Verification Process PostalOne! Release 25 (Nov. 7, 2010)

 Retrieve eDoc verification results  Calculate loss of discount/additional postage –45 days from the Mailing Date of last Finalized Postage Statement  Send notification to eDoc submitter CRID  Display notification to users linked to submitter CRID users  Provide Full Service Assessment report  Track payment or request for reconciliation through status codes –Unpaid, Pending Reconciliation Review, Reviewed – Payment required –Overdue, Closed, Paid  Detailed Error via MicroStrategy Reports Full Service eDOC Verification Process PostalOne! Release 25 (Nov. 7, 2010)

 Mailers search and address Full Service Assessment based on eDoc Submitter CRID  PO! dashboard presents Full Service Assessment Report  Allows for the following functionality –Payment of Full Service Discount Assessments Select Permit to pay additional postage –Request reconciliation –Provide contact information Full Service eDOC Verification Process PostalOne! Release 25 (Nov. 7, 2010)

 Mailer: Responsible for resolving discount assessment –Review Assessment charges –Pay or Request Reconciliation for charges  Remediation Team/Help Desk: Responsible for review of reconciliation requests –Review Reconciliation request –Notify mailer of review results –Require full payment –Adjust payment amount  Acceptance Unit: Notified of unpaid charges –Notices mailer of unpaid charges PostalOne! Release 25 (Nov. 7, 2010) Full Service eDOC Verification Process

Full Service eDoc Verification Errors PostalOne! Release 25 (Nov. 7, 2010) VerificationeDoc record level Mailer IDContainer Barcode Tray Barcode Piece Barcode Piece Range Barcode Service Type IDPiece Barcode By/ForPiece Piece Range FAST AppointmentHU or Container FAST CSAHU or Container Unique Container BarcodeContainer Barcode Unique Tray BarcodeTray Barcode Unique PiecePiece Barcode Unique Piece RangePiece Range Barcode  Mailer ID: Mailer ID parsed from barcode in eDoc is a valid Mailer ID  Service Type ID: Service Type ID parsed from barcode in eDoc is valid for Mail Class and indicates Full-Service  By/For: Mail Owner and Mail Preparer in the eDoc by MID, CRID is valid  FAST Appointment: Appointment ID provided in the eDoc is a valid. Full Service containers associated with appointments  Unique Barcodes: Barcode in eDoc is unique within and across a single eDoc submitter in a 45 day period based on the Postage Statement Mailing Date  CSA: eDoc contains all required elements for the CSA

Full Service MicroStrategy Reports Full Service eDOC Feedback  Microstrategy Reports available today to evaluate eDOC Full Service  Improvements in May 23 Release  More Information in Errors  Further Improvements in the November 7 Release  USPS proactively contacting mailers to resolve issues

The current FS Quality reports gives mailers aggregate & detail views for Full Service eDOC verifications Report prompts allow the user to filter the error reports for particular error types The Error Verification report illustrates aggregate counts by each error type Full Service MicroStrategy Reports

The current FS Quality reports gives mailers detailed views of each of the Full Service verifications The detailed report provides data to research and identify source of error. For By/For errors the report supplies the Mail Preparer and Mail Owner For Appointment Verification errors the report supplies the Appointment ID at Container/Handling Unit level For Mailer ID and Service Type errors the report supplies the IM barcode For Unique Barcode errors the report supplies the IM barcode For CSA errors the report supplies the CSA ID Full Service MicroStrategy Reports

USPS Proactively Contacting Customers  Several customers contacted since 4/14  Top issues discussed: –FAST appointment verification –Mail/Owner preparer –Non-unique Intelligent Mail barcodes  Postal Service and Mailers making adjustments/ Fixing Issues We’re working with our Customers

It CAN be done…  Identified a customer having the most container association errors in the Feb timeframe. Running approximately 5000 containers every three weeks with 0 container association compliance, USPS contacted customer and helped them work through issues. 5 weeks later, after implementing their process for container association, they were measuring at above 90% performance. Their current score is 95.9% for the trailing 3 weeks (5177 containers associated out of 5,398). Compliance Results

Upcoming PostalOne!/SASP Releases  May 23, 2010 –Full Service PostalWizard mailpiece limited to 10,000 pieces –Expanded Error Descriptions for MicroStrategy Reports –Address Anomalies  November 7, 2010 –Full Service eDOC Verification –Full Service ACS non-compliance –Enhanced MicroStrategy Reports –Address Anomalies Upcoming Releases

24  Full Service Pieces with addresses not updated per feedback –Periodicals provided at no charge up to 60 days from first notice –Standard Mail and BPM flats provided at no charge up to 95 days –Charges apply after no-charge delivery period determined by multiple notices to same Delivery Point by a Mail Owner  Non-Compliant Full Service Pieces –Unable to associate ACS records to an eDOC –Attempt to associate ACS records with a Full Service STID to an eDOC –Use MID in barcode to determine data recipient CRID –Fulfill Full Service ACS through PostalOne! and Mail.XML. PostalOne! Release 25 (Nov. 7, 2010) Full Service ACS non-compliance

25  Mail Owners are determined based on CRID from the eDoc or the MID from IMb.  Depending on the balance, Mailers will receive an invoice from ACS. –An invoice and statement will be mailed monthly if the balance is more than $50 on the 24th. –An invoice and statement will be mailed March 24 th and October 24 th of each year if the cumulative balance is less than $50. –Invoices will be mailed to the address for relevant CRID  Payment must be submitted with a copy of the invoice within 30 days of invoice date  PostalOne! will suspend delinquent Mail Owner’s Full-Service ACS Feedback. PostalOne! Release 25 (Nov. 7, 2010) Full Service ACS non-compliance

FAST / Customer Supplier Agreements (CSAs) FAST Release (May 23, 2010) FAST online Origin Entry and drop ship users will have:  Ability to associate stand-alone content and add contents to appointment shells created online in addition to via Web Services  Improved ability to update and cancel information related to recurring appointments. Changes to the FAST CSA Module:  For Standard Mail, Bound Printed Matter, and Periodicals, the CSAs have been simplified by setting the Processing Code to “Mixed Surface” for all processing categories and all ZIPs  Support Pallets preparation per DMM/Labeling List pallet makeup requirements

Communications  Advisory Updates  Release Notes  Guides and Specification Updates  A Guide to Intelligent Mail for Letters and Flats  A Guide to Customer Supplier Agreements  User Access to Electronic Mailing Information and Reports  Test Environment for Mailers: Checklist and Troubleshooting  Postal Service Mail.dat Specifications  Postal Service Mail.XML Specifications