1. TECHNOLOGY IN THE U.S. POSTAL SERVICE Tom Day Vice President, Engineering

2. VISION Automate 2

3. 3 Letters Flats Packages & Bundles Material Handling Integration through effective use of Data AREAS OF TECHNOLOGY DEVELOPMENT

4. LETTERS AFCS MLOCRBCSDBCS CSBCS 4 The Vision

5. The Goals FLATS  Improve current flats operations  Increase customer participation in worksharing  Explore flats delivery point sequencing  Explore delivery point packaging for flats and letters

6. Overview FLATS AFSM100 UFSM1000 80 % 12 %

7. Research & Development FLATS Flats Sequencing System [FSS] Flats Sequencing System [FSS] Delivery Point Packager [DPP] Delivery Point Packager [DPP] PARALLEL DEVELOPMENT EFFORT

8. Automate Automated Package Processing System PACKAGES/BUNDLES Twin Cities Metro Hub, Minneapolis MN 8

9. PARCELS Automate Singulate, Scan, Induction Unit Washington Bulk Mail Center

10. Improve MATERIAL HANDLING 10 Integrated Dispatch and Receipt (IDR) Robotic Container System (RCS) Low Cost Tray Sorter (LCTS) Automated Airline Assignment (AAA) Semi-Automatic Scan-Where-You-Band (SASWYB) Automatic Tray Sleever (ATS) Automatic Tray Unsleever (ATU) Automatic Flat Tub Lidder (AFTL) Automatic Flat Tub Unlidder (AFTU) Automatic Banders (Mosca & Signode) Tag Blaster

11. Optimize USE OF DATA 11 Mail Processing Infrastructure – Phase II Transaction Concentrator Replacement Surface Visibility – Phase I IDR w/Surface Visibility (24-digit Tray Label) Mobile Data Collection Device Replacement Intelligent Mail – Coding Strategy

12. TECHNOLOGY STRATEGIES Conclusion Activity Timeline Program2004 2005 2006 2007 2008 2009 2010 Advanced Facer Canceller System Upgrade Letter Recognition Enhancement Program MLOCR Replacement Postal Automated Redirection System (PARS) Wide Field-of-View Camera Replacement AFSM 100 Feeder Enhancement Automatic Tray Handling System (ATHS-100) Flat Identification Code Sort (FICS) Flat Remote Encoding System (FRES) Flats Recognition Improvement Program (FRIP) Flats Sequencing System (FSS) Delivery Point Packaging (DPP) PARS for Flats Automatic Tray Handling System(ATHS-1000) Automated Package Processing Systems (APPS) Parcel Singulation (SSIU) Universal Sorter Integrated Dispatch & Receipt (IDR) Powered Industrial Equipment Tracking Automated Guided Vehicles (AGV)

13. TECHNOLOGY IN THE U.S. POSTAL SERVICE Bringing Automation Full Circle 13