COMMUNICATIONS PLAN

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Implementing
Intelligent
MAIL
in the U. S. Postal Service
Charles Bravo Senior Vice President Intelligent
Mail Address Quality
National Postal Policy Council May 25, 2006
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What is INTELLIGENT MAIL?
The use of one code to uniquely identify and
allowend-to-end visibility into the mail stream.

• Evolution in postal technology
• Helps business customers better manage
  theirresources and reduce costs
• Provides real-time access to processing
  anddelivery information

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IN THE MOST SIMPLE TERMS
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WHY CHANGE? THE BENEFITS

• Simplifies use of postal services
• Frees up real estate on mail piece
• Supports accurate collection of postage
• Improved management of mailers business
  processes
• Increased transparency (mail visibility)
• Enhanced security while maintaining privacy
• GROW REVENUE!

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INTELLIGENT MAIL COMPONENTS
Transport
Induction
Process
Delivery
Mail Preparation
Operations
Electronic Manifest or Pre-Shipment
Notification
Entry Scan Starts the Clock
First Automated Scan
Last Automated Scan
Delivery Scan
Container Scans
Information
Status of Mail
Planned Induction Date/Time
ActualInductionDate/Time
Mailpieces in Sorting
Mail Available for Delivery
Actual Receipt
Value
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OneCode Vision
Yesterdays Mail Piece
Address Change Service Codes
Special Services
Presorted First-Class Mail U.S. POSTAGE
PAID Washington, DC 20260 Permit No. 1
6060 PRIMACY PKWY STE 201MEMPHIS TN 38188-3333
ADDRESS SERVICE REQUESTED
BWNGKVN 9999 9920 0104 276
IRENE PAYNE 6449 AMBERVIEW CV MEMPHIS TN
38141-8346
PLANET Code for CONFIRM Service
POSTNET Code for Sortation
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OneCode Vision

• A New Mailpiece for Today

Visibility Special Services
Address Quality Services
First-Class Mail Postage Fees Paid USPS Permit
No. G-10
COMPUTERIZED FORWARDING SYSTEM UNITED STATES
POSTAL SERVIICE 6511 BALTIMORE AVE HYATTSVILLE MD
20782-9988
CHARLES E. BRAVO SR VP INTELLIGENT MAIL ADDRESS
QUALITY UNITED STATES POSTAL SERVICE 475 LENFANT
PLZ SW RM 2100 WASHINGTON DC 20260-5500
CONFIRM Service
Sortation
One code per mail type that points to a suite of
services
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OVERVIEW/BACKGROUND

• Uses 4-state barcode symbology
• Refers to 4 different positions of the bars
  within the barcode
• The code will
• Uniquely identify the sender
• Uniquely identify the mailpiece
• Provide a destination ZIP Code for sortation
  routing
• Encode Special Service indicators Address
  Change Service (ACS) requests
• Barcode will be acceptable for automation
  discounts

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TESTING TO ENSURE SUCCESS
All Testing is Going Well

• Computer simulation SUNY, LM Omniplaner
• Encoder testing 22 mailers
• Test deck stress deck on specifications
• Move Validation Mail (MVL)
• Over 10 million mail pieces
• Read rate comparable to POSTNET
• Prudential Mail and American Express
• Tested over 1 million mail pieces
• Shorter height testing revealed no degradation
  for letters
• Letter height specification updated to between
  .134 and .230
• Flats stress deck testing underway

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OneCode CONFIRM vs. CONFIRM
Barcode Symbology 4-State PLANET Codes
Unique Numbers 1 Billion 1 Million
Can Combine Services Yes No
Cost Same as CONFIRM Current CONFIRM pricing
Available for all letter mail Sept. 2006
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DEVELOP ENABLING INFRASTRUCTURE

NationalApplication Servers
USPS National Data Stores
DistrictServers
CustomerDataCenters
DistrictServers
DistrictServers

Firewall
EnterpriseData Warehouse
DistrictServers

USPS Wide Area Network 9 Areas80 Districts280
Plants38,000 Facilities300,000 IMD Scanners
USPS Mail Processing Infrastructure
USPS Associate Office Infrastructure
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INTELLIGENT MAIL DEVICES

• Imager for barcodes
• Reads 4-state, POSTNET, and PLANET barcodes
• Captures image of signature
• Larger display
• Color display
• 2 x 3 dimension
• Wireless capable
• Bluetooth enabled
• WLAN (802.11b) and WWAN (GPRS) expansion
  capability

• Full alpha-numeric keypad

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ENCHANCE ADDRESS QUALITY

• Mailers expect the Postal Service to deliver
  their mail to the right destination and the right
  person the first time.
• Supporting Facts

Approximately 45 million change of addresses are
filed each year
Each year approximately 2 million addresses are
added to the system.
In 2005, the Postal Service processed 212 billion
mail pieces.
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USPS FOCUS

• Overall improvement in Address Quality
• Reducing UAA
• Increasing DPS percentage

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MOVE-RELATED UAA
New York
New Jersey
Pennsylvania
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PHYSICAL ADDRESS UAA
Common Address Quality Problems
CARL SHULER PO BOX CHICAGO IL 60614-1910
CARL BROWN 1414 LAKE ST APT CHICAGO IL
60614-1910
CARL SHULER LAKE ST APT 3A CHICAGO IL
60614-1910
CARL SHULER 1414 LARK ST APT 3A CHICAGO IL
60614-1910
CARL SHULER 1414 LAKE ST APT CHICAGO IL
60614-1905
CARL SHULER 1914 LAKE ST APT 3A CHICAGO IL
60614-1910
Missing Apt or Ste Number
Incorrect Number
Incorrect Recipient
Missing Number
Missing RR or Box Number
Incorrect Street Name
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ENHANCE ADDRESS QUALITY

• Services to keep up with movers
• Existing
• NCOA Link
• The most secure method to keep customer address
  information current.
• Over 270 Licensees
• New
• OneCode ACS
• Provides mailers with electronic address
  correction services without need of costly manual
  processing.

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OneCode ACS
OneCode ACS is available for First Class letter
mail Sept. 1, 2006
ABC Company
123 Main St
Memphis TN 38101
-
1234
Address Service Requested
INTELLIGENT MAIL ADDRESS QUALITY
USPS Forward
6060 PRIMACY PKWY STE 201
-
0001
-
INTELLIGENT MAIL ADDRESS QUALITY
MEMPHIS TN 38188
2020 OneCode PKWY
MEMPHIS TN 38188
-

• MVL testing for over a year
• Testing with multiple mailers
• PARS will allow standard mail to be offered
  late in 2007

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OneCode ACS vs. ACS
Barcode Symbology 4-State None
Percent Electronic High 90s 80-85 plus hardcopy
Can Combine Services Yes No
Response Time Hours Days
Cost 21 per record 21 per electronic record/75 per hard copy
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ENHANCE ADDRESS QUALITY

• Services to improve address quality
• Just Launched
• Address Element Correction II (AEC II)
• Allows mailers to submit bad addresses to USPS
  for correction.
• Uses Delivery Force Knowledge
• ANKLink
• Provides mailers with information on addresses
  not known after the forwarding period concludes.
• Over 20 Licenses have been issued.

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ENHANCE ADDRESS QUALITY

• Quality address information from movers
• Internet Change of Address
• see www.usps.com
• Telephone Change of Address
• call 1-800 ASK - USPS
• Movers Guide
• Visit your Post Office

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INTERNET CHANGE OF ADDRESS
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INTERNET CHANGE OF ADDRESS

• 11.9 Million ICOAs Processed Electronically
• January 2002 April 2006

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ICOA PUBLICITY
Last year, this story was featured in over 484
newspapers across the country reaching 39 million
readers.
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THE LATEST MOVING INNOVATION

• Catalogers lose contact with customers during the
  move
• Consumers hyper-spend immediately following their
  move
• Catalogers miss the hyper-spending window
• Movers are interested in
• trying new catalogs

Catalog Request Card
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INCREASING DPS PERCENTAGE

• Increasing the use of ICOA
• Promoting more DPV by mailers
• Encouraging mailers to use AEC I and II
• Using internal tools
• Launching SuiteLink

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WHAT YOU CAN DO?

• Learn more about the 4-State Barcode
• Rapid Information Bulletin Board System (RIBBS)
  web site (https//ribbs.usps.gov/onecodesolution/)
  
• Encourage your customers to use ICOA at usps.com
• Learn more about our Address Quality tools
• NCOA Link, OneCode ACS, ANKLink, AEC I, AEC II
• Obtain a copy of the Address Quality
  Methodologies- Best Practices. It can be
  downloaded at
• https//ribbs.usps.gov/mtac.htm

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THE BIG PICTURE
Identity Unique ID across assets, containing or
linked to customer IDs
MTE License Plate
Truck/Trailers
Pallet / MTE Placard
24-Digit Distribution Labels
Airplanes
Unique Mailpiece ID (4-State, UCC EAN 128)
DR Tag Scans