1. 1 Shaping a More Efficient Future Pricing Change Effective Monday, May 14 and Sunday, July 15

2. 2 Shaping a More Efficient Future New Prices  Reflect changes in operations and the marketplace  Offer more choices –Deaveraged Presort Levels First and Standard (3-Digit vs. 5-Digit, AADC vs. Mixed) –Deaveraged Zones in Priority (Zone 1&2 v. Zone 3)  Include incentives –Reduced overflow trays –More dropshipping –Smaller boxes –More pallets  Reduce undeliverable-as-addressed mail  Shape matters

3. 3 Flexibility Test Shaping a More Efficient Future Standard Mail ™ Length runs parallel to the surfaceFlats over 10 inches long that contain a rigid insert; length perpendicular to surface

4. 4 Shaping a More Efficient Future Periodicals  April 4, 2007 – Proposed Rule on usps.com  April 25, 2007 – Comments Due  May 14, 2007 – Final Federal Register Target  Issues –Definition of Machinability –Application of Container Charge –Apportioning Container and Bundle Charges –Container and Bundle Minimums

5. 5 Shaping a More Efficient Future Current Implementation  May 14, 2007 –All Domestic (except Periodicals) –All International  July 15, 2007 –Periodicals  TBD – Reconsidered Rates –Standard Mail flats –Nonmachinable surcharge for First-Class Mail letters –Priority Mail Flat-Rate Box

6. 6 Shaping a More Efficient Future Current Implementation  Business Mail Entry Training –Webcasts (Feb – May) –In-Person Train-the-Trainer (April 5-9)  Retail Training –Postal Bulletin –Postmasters Kit  Operations Training  Customer Training –Postal Customer Councils –Mail Service Providers/Business Partners

7. 7 Shaping a More Efficient Future New Law Implementation  More Predicatable Price Changes  Work with Mailers –Survey of Budget Cycle –Preferred Month  32 Customer Comments  Reply Comments in May

8. 8 Shaping a More Efficient Future Resources USPS.com  Pricing Classification Service Center (PCSC)  Pricing change – usps.com/ratecase  Postal Explorer – pe.usps.com  MailPro – usps.com/mailpro  DMM Advisory – dmmadvisory@usps.com