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4-State Barcode Implementation

6060 PRIMACY PKWY STE 201MEMPHIS TN 38188

John Doe6449 AMBERVIEW CVMEMPHIS TN 38141-8346

#BWNGKVN #9999 9920 0104 276

Address Change Service

6060 PRIMACY PKWY STE 201MEMPHIS TN 38188

John Doe6449 AMBERVIEW CVMEMPHIS TN 38141-8346

Address Change Service

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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

Overview / Background

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4-state Customer Barcode Benefits

USPS Identified Benefits Combines multiple codes into a single code

Frees up mail piece real estate Select a suite of services using a single code Move between multiple suite of services within mailing All OneCode services accessible

Greater number of uniquely identifiable mail piece Relates all services back to 1 unique customer ID Improve mail service – enhanced diagnostics Automated services means less cost – win-win

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4-State Implementation Status

Letters – Sept. 1, 2006 Over 200 4-state encoders downloaded or sent to mailers Barcode will be available for automation discounts:

- With services – September 1, 2006- All letter mail – March 1, 2007- (Note: Customer ID required)

OneCode Confirm- First-Class and Standard Mail- Barcode Location same as POSTNET

OneCode ACS- First-Class Mail – September 1- Standard Mail – Fall ’07- (Note: dependent upon full deployment of PARS)- Barcode location – above address block until Fall ‘07

4-State Barcode Implementation Remains On-Schedule

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Letter Mail•Test deck – stress deck on specifications • Move Validation Mail

• Over 20 million 4-state barcode mail pieces• Prudential Mail, American Express, Fingerhut, Census

• Tested over 2 million mail pieces• Shorter height testing revealed no degradation for letters

• Letter height specification updated to between .134 and .230

Testing to Ensure Success

All Testing is Going Well

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OneCode ACS is available for First Class letter mail Sept. 1, 2006

ABC Company123 Main StMemphis TN 38101-1234

Address Service Requested

6060 PRIMACY PKWY STE 201INTELLIGENT MAIL & ADDRESS QUALITY

MEMPHIS TN 38188 - 0001-2020 OneCode PKWY INTELLIGENT MAIL & ADDRESS QUALITY

MEMPHIS TN 38188 -

USPS Forward

• Electronic address corrections only – no hardcopy • PARS will allow standard mail to be offered late in 2007

OneCode ACS

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4-State Barcode Implementation for Flats

Flats testing underway LALA testing progress Flats testing underway (Quad Graphics, Quebecor, R.R. Donnelley,

Brown Printing, Perry Judd, …..and Eng. Stress Deck) Decision on height for 4-state on flats – December 1, 2006 Flats – Spring ’07

Barcode will be acceptable for automation discounts OneCode Confirm for First-Class and Standard Mail OneCode ACS for mail on AFSM-100

- First-Class- Periodicals- Standard – Fall ‘07

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OneCode ACS vs. ACSBarcode Symbology 4-State4-State None

Percent Electronic High 90’sHigh 90’s 80-85% plus hardcopy

Can Combine Services

YesYes No

Response Time Hours Hours Days

Cost 21¢ per record*21¢ per record* 21¢ per electronic record/75¢ per hard

copy

* Proposed price reduction in current rate case for letter mail

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CONFIRM / Data Flow - Infrastructure Improvement Results

Improvements CONFIRM now sent near real-time Over 200 plants with mail processing infrastructure

- Speeds-up data availability- Prevents data loss due to file corruption

Replaced older servers with state of the art ones Consolidated servers nationally for better monitoring

Results Significant reduction in frequency of major issues (SPLY) Customer Service call volume has dropped by one-third

- Subscriptions and volume have grown

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OneCode CONFIRM vs. CONFIRM

Barcode Symbology

4-State4-State PLANET Codes

Unique Numbers 1 Billion1 Billion 1 Million

Can Combine Services

YesYes No

Cost Same as CONFIRMSame as CONFIRM CONFIRM pricing

Available for all letter mail Sept. 2006

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Unique Identification at All Levels of Aggregation is the Foundation of Total Mail Visibility

Unique Mailpiece ID(ex: 4-state

Customer Barcode) Tray Label

Assigned Transportation

Tray Label

Container Barcode

Unique Mailpiece ID(4-state Customer

Barcode, IBI)

Future Visibility - Nesting into Unit Loads

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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/)

Automation discount tied to 4-state in 2009