1. ® VP Network Operations Jordan M. Small MTESC Reengineering MTAC Briefing

2. 2 Agenda  Optimize Network  Network Design  MTESC Schedule  Customer Impacts

3. 3 Optimize Network  Optimize MTESC Network Design  Balance MTE Between Surplus and Deficit Areas ● Reduce Need to Reposition Equipment ● Reduce Transportation Cost  Reduce Fixed Cost

4. 4 Original Network – 23 MTESCs Network Design

5. 5 New Network – 15 MTESCs

6. 6 MTESC Schedule  8 MTESCs Planned to Close in FY10 ● Long Island Completed ● Pittsburgh Completed ● Kansas City Completed ● St. Louis 3/1 ● Greensboro 3/31 ● Cincinnati 6/30 ● Memphis 6/30 ● New Jersey 9/30

7. 7 Customer Impacts  Fulfillment location changes planned to be transparent to customers  No Change in Commitment Timeframes  No Customer Issues Reported – 3 closings to date

8. 8 Questions