USPS ® RETHINK SHIPPING  2016 Shipping Services Prices Commercial Changes Presented by: Sojeva Ortega Business Alliances Manager Headquarters 1

USPS ® RETHINK SHIPPING  Agenda  History  USPS Value  First-Class Package Service  Priority Mail Express & Priority Mail  Parcel Select  Domestic Changes  International Changes 2

USPS ® RETHINK SHIPPING  History  No increase to Priority Mail in 2015, price reductions in 2014  The most recent Priority Mail price increase was in January 2013  Average annual price increase of 4.4% this decade for all competitive products  The Postal Service continues to be the only commercial carrier offering ounce-based pricing for lightweight shipments  The Postal Service does not dimensionally weight packages below 1 cubic foot (1728 cubic inches) 3

USPS ® RETHINK SHIPPING  USPS Value  The Postal Service has made significant investments to support growing business-to-consumer and ecommerce marketplace  Predictable, consistent prices with no accessorials  Priority Mail and First-Class Package Service provide reliable, fast 1-3 day transit time nationwide  Delivery 6 days per week at no additional charge  World-class package tracking and visibility  Multiple options for label generation and payment  Expert support to onboard new customers  Customer support network 4

USPS ® RETHINK SHIPPING  No unexpected surcharges 5  NO fuel surcharge  NO delivery area surcharge  NO extended delivery area surcharge  NO residential surcharge  NO extra charge for regular Saturday delivery 1  NO charge for forwarding your Priority Mail ® package  NO charge for return of your Priority Mail package if undeliverable or unclaimed 1. Saturday delivery available except if a national holiday. On the rare occasion when Saturday is a national holiday, Priority Mail Express service is available for an added charge.

USPS ® RETHINK SHIPPING  Domestic product comparison chart 6 1 Exclusions apply. Please see usps.com ® or a Sales Representative.

USPS ® RETHINK SHIPPING  First-Class Package Service  Commercial Plus Pricing eliminated (14 to oz.)  Commercial Base Pricing now includes ounce-based pricing up to ounces  Overall average increase is 12.8%  Eliminated ounce-based pricing below 8 oz – flat rate up to 8 oz  Eliminated presort options (ADC, 3 Digit, 5 Digit) – limited usage but still available vis Negotiated Service Agreement 7

USPS ® RETHINK SHIPPING  Priority Mail Express  Commercial Base and Commercial Plus will be the same published rate  Commercial Base/Plus prices will be 10% less than Retail prices  Overall average increase 15.6%  Eliminate Priority Mail Express Flat Rate Box 8

USPS ® RETHINK SHIPPING  9 Priority Mail  Commercial Base – 9.4% average increase  Commercial Plus (including Cubic) – 13.3% average increase  Eliminate Regional Rate Box C  Eliminate Critical Mail  Priority Mail Open and Distribute – 10% increase

USPS ® RETHINK SHIPPING  Parcel Select  Overall average increase 3.1 % for 1 lb+ Parcel Select  Parcel Select Nonpresorted rebranded as Parcel Select Ground  DNDC – 5.1%; DSCF – 4.5%; DDU 4.5%; Ground 1.9%  ONDC and NDC presort categories eliminated 10 Parcel Select Lightweight  Overall average increase 23.5% for under ounces  Eliminate ounce-based pricing below 8 oz- flat rate up to 8 oz  Ounce-based pricing for 9-12 oz and oz category  Eliminate Machinable/Irregular distinction- one price table

USPS ® RETHINK SHIPPING  11 Other Domestic Changes  Premium Forwarding up 3.6% to $18.65, online price $17.10  Adult Signature up 3.6% to $5.70  Restricted Delivery up 3.5% to %5.95  Package Intercept up 3.3% to $12.55  Competitive Post Office Box prices up 3.5% on average  Click-N-Ship will no longer be an authorized payment method for Priority Mail Express and Priority Mail Commercial Base Pricing.

USPS ® RETHINK SHIPPING  12 International Changes  Global Express Guaranteed up 7.1%  Priority Mail Express International up 11.6%  Priority Mail International up 10.2%  International Priority Airmail up 4.2%, IPA M-Bags up 3.5%  International Surface Airlift up 6.3%, ISAL M-Bags up 5.3%  Airmail M-Bags up 9.2%  First-Class Package International Service up 21.5%

USPS ® RETHINK SHIPPING  Rethink Shipping