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IntelligentMAIL®

in the U. S. Postal Service

National Postal Policy CouncilMay 25, 2006

Charles BravoSenior Vice PresidentIntelligent Mail & Address Quality

Implementing

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Evolution in postal technology

Helps business customers better manage theirresources and reduce costs

Provides real-time access to processing anddelivery information

What is INTELLIGENT MAIL?What is INTELLIGENT MAIL?

The use of one code to uniquely identify and allowend-to-end visibility into the mail stream.

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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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Status of Mail

PlannedInductionDate/Time

INTELLIGENT MAIL COMPONENTS

ElectronicManifest or

Pre-Shipment Notification

FirstAutomated

ScanDelivery

ScanContainer

ScansLast

AutomatedScan

Actual Receipt

Entry Scan “Starts the

Clock”

ActualInductionDate/Time

TransportTransportInductionInduction ProcessProcess DeliveryDeliveryMail PreparationMail Preparation

Operation

sInform

atio

nValue Mailpieces

in SortingMail

Available for

Delivery

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OneCode Vision™OneCode Vision™

6060 PRIMACY PKWY STE 201MEMPHIS TN 38188-3333

IRENE PAYNE6449 AMBERVIEW CVMEMPHIS TN 38141-8346

ADDRESS SERVICE REQUESTED

PLANET Code for CONFIRM ServicePLANET Code for CONFIRM Service

PresortedFirst-Class MailU.S. POSTAGE PAIDWashington, DC 20260Permit No. 1

POSTNET Code for SortationPOSTNET Code for Sortation

Address Change Service CodesAddress Change Service Codes

#BWNGKVN #9999 9920 0104 276

Special ServicesSpecial Services

Yesterday’s Mail PieceYesterday’s Mail Piece

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OneCode Vision™OneCode Vision™

A A New Mailpiece for Today Mailpiece for Today

CHARLES E. BRAVOSR VP INTELLIGENT MAIL & ADDRESS QUALITYUNITED STATES POSTAL SERVICE475 LENFANT PLZ SW RM 2100WASHINGTON DC 20260-5500

“One code per mail type that points to a suite of services”

First-Class MailPostage & Fees

PaidUSPS

Permit No. G-10

COMPUTERIZED FORWARDING SYSTEMUNITED STATES POSTAL SERVIICE6511 BALTIMORE AVEHYATTSVILLE MD 20782-9988

Visibility & Special ServicesVisibility & Special Services Address Quality ServicesAddress Quality Services

CONFIRMCONFIRM ServiceService SortationSortation

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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

Barcode will be acceptable for automation discounts

OVERVIEW/BACKGROUND

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• 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

All Testing is Going Well

TESTING TO ENSURE SUCCESS

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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 Same as CONFIRMCONFIRM

Current CONFIRM

pricing

Available for all letter mail Sept. 2006

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NationalApplication

Servers

EnterpriseData

Warehouse

USPS Mail Processing Infrastructure

IMD

USPS Associate Office InfrastructureUSPS Wide Area Network

9 Areas80 Districts280 Plants38,000 Facilities300,000 IMD Scanners

USPS National Data Stores

CustomerData

Centers

DistrictServersDistrict

ServersDistrictServersDistrict

Servers

Fir

ewa

ll

DEVELOP ENABLING INFRASTRUCTURE

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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

INTELLIGENT MAIL DEVICES

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ENCHANCE ADDRESS QUALITYMailers expect the Postal Service to deliver their mail to the right destination and the right person the first time.

Supporting Facts:

In 2005, the Postal Service processed 212 billion mail pieces.

Approximately 45 million change of addresses are filed each year

Each year approximately 2 million addresses are added to the system.

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USPS FOCUS

Overall improvement in Address Quality:

Reducing UAA

Increasing DPS percentage

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Pennsylvania

New Jersey

New York

MOVE-RELATED UAA

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Common Address Quality Problems

Missing Apt or Ste Number

Incorrect Number

Incorrect Recipient

Missing Number

Missing RR or Box Number

Incorrect Street Name

ACME PRODUCTS4759 WESTERN STNEW YORK NY 10022-5279

CARL SHULER1414 LAKE ST APT CHICAGO IL 60614-1905

CARL SHULER1914 LAKE ST APT 3ACHICAGO IL 60614-1910

CARL BROWN1414 LAKE ST APTCHICAGO IL 60614-1910

CARL SHULER LAKE ST APT 3ACHICAGO IL 60614-1910

CARL SHULERPO BOX CHICAGO IL 60614-1910

CARL SHULER1414 LARK ST APT 3ACHICAGO IL 60614-1910

PHYSICAL ADDRESS UAA

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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 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

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

OneCode ACS

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OneCode ACS vs. ACS

Barcode 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 record21¢ 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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0

100,000

200,000

300,000

400,000

500,000

600,000

2002 Electronic 102,342 81,599 61,826 69,005 84,122 85,671 101,615 112,727 90,942 87,860 95,436 92,693

2003 Electronic 108,687 94,949 108,176 119,437 153,540 173,797 185,602 215,179 175,727 152,849 136,610 166,764

2004 Electronic 185,789 170,777 187,318 200,840 257,777 298,076 299,831 321,101 253,188 226,121 223,547 249,074

2005 Electronic 276,818 252,314 303,081 317,303 424,851 450,755 436,332 503,674 562,045 393,652 358,275 369,206

2006 Electronic 408,069 353,685 409,439 414,172

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

11.9 Million ICOA’s Processed Electronically 11.9 Million ICOA’s Processed Electronically January 2002 – April 2006January 2002 – April 2006

INTERNET CHANGE OF ADDRESS

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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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TRLR453012MOPS

Identity:Unique ID across assets, containing or linked to customer IDs

Unique Mailpiece IDUnique Mailpiece ID(4-State, UCC EAN 128)(4-State, UCC EAN 128)

24-Digit Distribution 24-Digit Distribution LabelsLabels

Truck/TrailersTruck/Trailers

MTE MTE License License PlatePlate

Pallet / MTE PlacardPallet / MTE Placard

AirplanesAirplanes

D&R Tag ScansD&R Tag Scans

THE BIG PICTURE