1. Product Update – Returns eVS User Group November 10, 2011 Dan Barrett Manager, New Business & Returns

2. Traditional MRS Label For use in manual weighing/rating function Addressed to a post office, not a customer address Local permit opened where manual rating takes place The traditional MRS label features several key elements that can result in slow, expensive processes. No barcode! Background

3. Customers have pointed to service delays, absence of tracking, and a need for Flat Rate pricing as past obstacles. Background “What I do not want to have happen is have the pieces weighed and rated up at a processing facility NDC… Time in transit really suffered for us…A Flat Rate would be music to my ears.” -- Customer “There was no barcode on the piece – that’s the number one reason we switched…we started getting calls at the call center and every one has a cost of $8 - $9.” --Customer

4. 1.Maximize labels with IMpb 2.Improve scan performance 3.Simplify payment - scans and flat rates 4.Rebrand portfolio 5.Future – better align cost and value Returns Game Plan

5. In September, we launched a new Cloud-hosted tool for label printing and distribution to round out our capabilities. 1.Create flexible label printing tools Consumer able to print label via merchant website Merchant call center agent able to email label to consumer Every label features IMpb used for tracking and payment Requires minimal technology investment of the merchant Quick install, easy start-up Cloud Label Printing Tool New Solutions for Returns

6. Communicate improved tracking to customers - 100% scan rates, with focus on Acceptance scans for Returns. 2.Market enhanced tracking New Solutions for Returns Tracking included in the price of product – no charge New technology to help customer apply barcodes Visibility organization deploying new scan equip. Megan Brennan sponsored contest to drive execution Enhanced Visibility

7. September marked the launch of a new, scan-based payment process with Flat Rates that minimize manual rating. 3.Streamline payment Every label features IMpb with merchant MID Scans in USPS network represent piece count based on unique PIC Flat Rates afforded to the customer, validated via sampling Eliminates delays in time-in-transit due to manual rating Reduces error in charges to customer Scan-Based Payment New Solutions for Returns

8. MRS Priority Mail Return Service Ground Return Service First Class Package Return Svc. New Branded Solutions Existing In September, the Postal Service will Rebrand its Return products to better market to customers. Premier 2 – 3 Days Basic 1 lb.+ 3 – 7 Day Economy < 1 lb. 2 – 4 Day Current Service Varies by Product 4.Rebrand the Portfolio Still sold across USPS channels – retail, online, permit However, establishes identity separate and distinct from MRS Helps support USPS positioning as Returns provider of choice No Network or Service Changes New Solutions for Returns

9.  Redirection/Disposal – capability to trap and dispose of low value goods near origin to avoid costs. 5.Future State Capabilities Work in Progress ConsumerOrigin P.O.Origin SCF Avoids cost of 3 – 5 potential moves through USPS network Model already exists with Parcel Return Service today Combines PRS with disposal capabilities at reduced cost Partner