1Restricted and Confidential—Internal Use Only

Paul Vogel

MTACMay 25, 2011

2

Agenda

Core Business & Marketing Strategies Initiatives Past & Current Innovations Updates What’s New in the Marketplace

3

First-Class Mail, First-Class Mail, First-Class Mail, First-Class Mail, First-Class Mail,

Marketing Mail, Marketing Mail, Marketing Mail,

Marketing Mail, Marketing Mail,

Marketing Mail,

Shipping, Shipping, Shipping, Shipping,

Shipping,

Shipping,

FY08 FY09 FY10 FY11 FY12 FY13

First-Class Mail,

Revenue Forecast

Retail Products & Services

Retail Products & Services

Domestic and International RevenueDomestic and International Revenue

ForecastForecast

Continued decline in First-Class revenue

Increased revenue from Marketing Mail, Shipping, and Retail Products

Continued decline in First-Class revenue

Increased revenue from Marketing Mail, Shipping, and Retail Products

FY08FY08 FY09FY09 FY10FY10 FY11FY11 FY12FY12 FY13FY13

4

Initiatives Discussed Last Meeting

• Critical Mail

• Legal Size - Flat Rate Envelope

• Regional Rate Box

• Alternate Postage Payment – Hallmark

• NSA’s Initiatives Across Product Lines

• Prepaid Flat Rate Boxes

• Sample Box

• Reply Rides Free

• Saturation / High Density Incentive

• Every Door Direct Mail

Newly Approved or Implemented Since Last Meeting

* Initiatives to be discussed further in slides that follow

Item Date

6,000 PO Boxes -- Move to Competitive May 18, 2011

Mobile Barcode Promotion -- Approved * May 17, 2011

Mail Works Guarantee -- Market Test May 16, 2011

Gift Card -- Market Test April 28, 2011

Forever Pre-Paid PM FR Postage -- Approved April 17, 2011

Lightweight Commercial Parcels -- Move to Competitive April 6, 2011

Sample Showcase II - Launch March 31, 2011

Adult Signature Service -- Move to Competitive March 28, 2011

Commercial Std Mail Parcels -- Move to Competitive March 2, 2011

Every Door Direct Mail -- Market Test * March 1, 2011

Parcel Select Regional Ground Service -- Approved. February 23, 2011

5

EDDM Program & Campaign

Every Door Direct Mail EDDM Retail

o On-Ramp for Sm / Med Businesses o Capture New Businesso Target 77% of Sm. Businesses who don’t currently use Mail.

EDDM BMEUo Target Large Businesses who do not currently use the mail in their advertising

mix, but instead utilize Alternative Media channels to do saturation advertising.

Outreach to 90,000 Printers.o DM Campaign to Printers - How to Promote EDDM – June 2011

New Feature – Based on Industry Input

6

Strategic Actions Toward Growth

Build AwarenessDeliver Positive Customer Experiences

Promote and Sell Products and Services

Advertise to build USPS brand and support growth

Provide convenient Retail and Expanded Access and consistently positive experiences

Pursue opportunities through direct Sales and partnerships

Provide convenient Business Mail Entry and Enterprise Payment

Deliver world-class product Visibility

Communicate to generate employee and stakeholder support

Build Identification and Loyalty Program to recognize customers

7

Adding Value to Mail

Weight – 2 Oz Appearance Simplification Advertising Leverage Technology

POSTAGE W ILL BE PAID BY ADDRESSEE

JAMES STACKRUSS GALLERY LTD476 BROADWAYNEW YORK NY 10013-9991

BUSINESS REPLY MAILFIR ST-C LASS M AIL PER M IT N O . 000 W ASH IN G TO N D C

N O PO S TA G E N EC E SS ARY

IF M A ILE DIN TH E

U N ITE D STATE S

YOUR COMPANY

ADDRESS

CITY STATE ZIP CODE

8

Leverage Technology

IMb Applications Alternate Postage Mobile Barcode Promotion

Market Test Approved May 16, 2011

Co-Mingled; Co-Mailed – Approvedo Clarification provided on Monday May 23rd.

9

Shipping Solutions

Sample Showcase IIApril ‘11

Sample Showcase IIApril ‘11

Parcel Select – Regional Ground

April ‘11

Parcel Select – Regional Ground

April ‘11

PM – Pre-Paid FOREVER Postage

April ‘11

PM – Pre-Paid FOREVER Postage

April ‘11

PM Game Board BoxApril ‘11

10

Additional Areas of Opportunity for Growth

Hybrid / Digital / Electronics E-commerce Financial Services Global 2012 Rate Case

11

Questions?