1. FINANCIAL UPDATE Mailers’ Technical Advisory Committee Meeting April 29, 2009 J. Corbett Chief Financial Officer & Executive Vice President

2. Economy-Business Impact

3. Global Insight's Baseline Forecasts for FY 2009 *Mailing Services Only **In Millions Jan-08Aug-08Dec-08Mar-09Apr-09 GDP 2.3%0.7%-1.7%-3.2%-3.0% Retail Sales1.4%-1.6%-7.5%-9.9%-9.3% Employment 1.1%-0.6%-2.2%-3.8%-3.9% Investment1.7%-3.8%-16.4%-21.5%-21.2% CPI-U1.4%4.1%-1.1%-1.2%-0.8% Rate Assumptions* 2.9%4.8%3.8% USPS Volume** 205,265 194,528 189,571 180,000

4. Revenue $2.8 Billion Below SPLY Revenue $2.8 Billion Below SPLY Expenses $0.8 Billion Below SPLY Net Income $2.0 Billion Below SPLY February YTD FY 2009 SPLY Financial Results * Numbers may not add due to rounding

5. February YTD FY 2009 Financial Results [ ] = Unfavorable variance to Plan/SPLY Numbers may not add due to rounding (Data in Millions) Mail Volume (%SPLY): -12.1% VarSPLYActual%SPLY [-$2,055]$ 258-$ 1,797 Net Loss -773 32,784 32,011 Expense [-$2,828]$33,041$30,214 Revenue -2.4% [-8.6%] [-797.4%]

6. ($ in Billions) % SPLY  (1.6%)(7.2%)(3.7%) February YTD FY 2009 Expense by Category

7. February YTD FY 2009 Workhours % SPLY

8. March Expectations  No significant change in economic forecast resulting in continued revenue and volume declines  USPS continues to aggressively manage the business  Variable workhours declining to partially offset revenue declines

9. FY 2008 FY 2009 Quarterly Volume - % SPLY * *Preliminary

10. First-Class Mail Volume 8 Quarter Moving Average Growth Rates % SPLY FY 2006FY 2007FY 2008 FY 2009 * *Preliminary

11. Standard Mail Volume 8 Quarter Moving Average Growth Rates% SPLY FY 2006FY 2007FY 2008FY 2009 *Preliminary *

12. % SPLY8 Quarter Moving Average Growth Rates FY 2006FY 2007FY 2008 FY 2009 Periodicals Volume * *Preliminary

13. Bulk Mail Acceptance

14. We N WE NEED YOUR HELP!

15. Issue  Postal Service received Significant Deficiency from external auditor for ineffective financial controls pertaining to Business Mail Acceptance –Timely recognition of revenue –Customer trust balances –Incomplete postage statements  Mailer  USPS

16. Progress to Date BMA Results 16 BMA ItemsFY 2007 FY 2009 (March) Timely Postage Statement Entry77%99% Master Trust Reconciliation87%97% BMA ItemsMetrics September 2008 March 2009 Negative Balances Number of Accounts2,000260 Balance of Accounts$1.7M$413K

17. Progress to Date Completion of Postage Statements 17 Control Actual Pass Rate % Periodicals Number of Addressed Pieces Total Postage Owner or Agents Signature Permit Total Postage Signature of Mailer 10 2030405060708090 Completion of Postage StatementsFY 2009 YTD Compliance Rates Periodicals68% Permit38% Target Pass Rate

18. SOX and the Role of Our Customers  Do not present a mailing with a hard copy postage statement if you submitted one electronically  Ensure all sections of postage statements are correct after making changes  Verify permit number on the mail matches the postage statement  Check that mailing fees and authorizations such as Non- profit are current

19. SOX and the Role of Our Customers  Provide the required documentation to support the rates claimed on the postage statement  Update your mailer profile and ensure your permit is valid  Keep your business account active –After 2 years of non-activity your account will expire  If you are a publisher - Make sure you file your Statement of Ownership in October  Communication is the key – Ask the BMEU for assistance if needed

20. FINANCIAL UPDATE Mailers’ Technical Advisory Committee Meeting April 28, 2009 J. Corbett Chief Financial Officer & Executive Vice President