ACS™ and Intelligent Mail®

1. ACS™ and Intelligent Mail® Twin Cities Postal Partners March 25, 2008 Lisa West USPS ACS Program Manager

2. Key Address Components USPS® delivers to: • Over 126 million street or rural style addresses • Over 20 million PO Box addresses • USPS adds over 2 million addresses annually • USPS converts over 390,000 addresses annually (E-911)

3. America Is Growing & On the Move • 13.7% of all Americans move each year • 41.1 million individual / family Change-of-Address (COA) filings • 19.3% of all businesses move each year • 2.3 million business COA filings • 146+ million delivery points in USPS® database • 1.8 million new addresses are added each year

4. Based on the 2004 UAA Cost Study

5. 4.7% UAA Broken Down by Disposition • 24.5% Moved and Forwarded • 16.2% Moved but Unforwardable (Unendorsed Standard, certain types of Package Services) • 15.7% Combined small percentage reasons • 12.7% Unable to Forward (No COA) • 10.5% Unable to Forward (Forwarding Order Expired) • 10.5% Incomplete, Incorrect, Illegible Address Element • 8.9% Vacant or No Mail Receptacle • 1% Deceased, Refused, or Unclaimed

6. How can a mailer keep up with mobile America? • Standardize with CASS Certified™ software • Validate with DPV™ and LACSLink™ • Suppress or correct those that do not validate • Update with NCOALink™and OneCode ACS™ • Why both? • PRE-mailing move-related updates • POST-mailing move AND non-move related updates

7. DPV™ Process – Validate • Confirms the existence of 146 million deliverable address records • Provides CASS users with a Y or N answer to the question “Does this address exist?” • Mailers make the business decision to mail or suppress N addresses • AEC/AECII™ can clear up a large percentage of N addresses • Mailed N pieces uncorrected can become returns or ACS records

8. New Move Update Requirements Scheduled For Implementation In November 2008 Federal Register Announcement Published September 28, 2007: • Standard Mail® Added • Frequency Changed To Every 95 Days Same Options Available For Compliance With Move Update Requirement • Alternative Method Not Allowed For Standard Mail

9. NCOALink™ Process – Update • A pre-mailing move update method leveraging USPS® provided data • Data delivery from USPS to certified licensees • Three levels of usage for certified licensees • End User Mailer (18 months of data updated monthly) • Limited Service Provider (18 months of data updated weekly) • Full Service Provider (48 months of data updated weekly)

10. ANKLink™ Forwarding Order Expired – Update • A valuable add-on to NCOALink™ Limited Service Providers and End User Mailers • Provides an indicator that a move has occurred in months 19 through 48 • Does not contain the actual new address • Allows for more value out of move update processing • Only the flagged addresses need to be sent to a 48-month NCOALink Full Service Provider

11. Why should I use OneCode ACS™? • Mailer 1 paid $66,595.68 for 1,109,928 ACS records in 2007. If they had been OneCode ACS, they’d have paid $12,505.10 • Mailer 2 paid $80,701.14 for 1,345,019 ACS records in 2007. If they had been OneCode ACS they’d have paid $332.65.

12. Other OneCode ACS™ Benefits • Takes advantage of our excellence in barcode reading accuracy & efficiency, allowing us to pass the savings on to mailers • Maximizes the Intelligent Mail® barcode for multiple purposes • Enables the addition of future addressing services without requiring mailpiece redesign • Improves mailpiece aesthetics • Removes adoption barriers by reducing the address block spacerequired for mailer participation

13. Example of A Typical Confirm® and ACS™ Mailpiece ABC Company 123 Main St Memphis TN 38101-1234 Electronic Service Requested Ancillary Service Endorsement Confirm PLANET Code > ACS Participant Code > #BWBJDCK ************* 5-Digit 38188 #901 681 4676 4# INTELLIGENT MAIL & ADDRESS QUALITY 6060 PRIMACY PKWY STE 201 MEMPHIS TN 38188-0001 ACS Keyline (Opt) > Postnet Barcode >

14. OneCode Confirm™ and OneCode ACS™ Mailpiece ABC Company 123 Main St Memphis TN 38101-1234 Electronic Service Requested INTELLIGENT MAIL & ADDRESS QUALITY 6060 PRIMACY PKWY STE 201 MEMPHIS TN 38188-0001

15. Ancillary Services For ACS™ & OneCode ACS™ Change Service Requested • Option 1 • All Mailpieces Disposed With Notification Provided • Option 2 – First-Class Mail® Only • Forwardable Mail Sent To New Address With Notification • Other UAA Mail Disposed With Notification

16. Ancillary Services For ACS™ & OneCode ACS™ Address Service Requested • Option 1 • Forwardable mailpieces sent to new location, separate notice provided • Undeliverable pieces returned with notice affixed (weighted fee for Standard) • Option 2 – First-Class Mail® only • Same as above, but when a piece is returned, an ACS record is also provided

17. Electronic Service Requested New Ancillary Service Endorsement Established for use ONLY with ACS™ or OneCode ACS™: • Valid on First-Class Mail®, Periodicals and Standard Mail® for OneCode ACS, plus Packages for Traditional ACS • A Printed Endorsement is required on Standard Mail using OneCode ACS • Visual Cue for Carrier Recognition of OneCode ACS processing • Mailpiece treatment and notification options are drawn from the Intelligent Mail barcode and mailer profile data • Address / Change Ancillary Services

18. Intelligent Mail Barcode Confirm® ACS™ Barcode Identifier OEL for flats, not used for letters OEL for flats, not used for letters Service Type ID Service Type ID Class and Ancillary Service Request Customer Identifier (Mailer ID - MID) Subscriber ID Participant Code Sequence Identifier Customer ID Keyline Delivery Point ZIP Code POSTNET Barcode POSTNET Barcode Intelligent Mail® barcode compared to prior Confirm®/ACS™ mailpiece attributes 6802 N

19. 2 3 6 9 11 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 Bar-code ID Service Type Code Mailer ID (Subscriber ID) Serial Number – “Open” Digits Routing ZIPTM – “POSTNET” Digits Construct of the Intelligent Mail Barcode Barcode IDidentifies the presort makeup in conjunction with an Optional Endorsement Line. Service Type IDidentifies special services requested (OneCode Confirm and/or OneCode ACS) or Mail Class when used for automation rate discount without any services. Mailer IDis a 6-digit or 9-digit number that uniquely identifies the mail owner or mailing agent. Serial Numberuniquely identifies the mailpiece or mailing. Routing ZIP Codemust contain Delivery Point Code in order to obtain automation rate discount.

20. Mailpiece Design Considerations Using Same Mailer ID For Different Mail Classes • Contact ACS™ Support Department For Assistance Before Implementing Return Address Format More Significant In PARS • Addresses/Endorsements In Reverse Video (Light on Dark) Often Reject In Automated Processing • Can Cause Manual Address Correction • Return address MUST appear on face of mail Using IM® barcode with Traditional ACS - barcode MUST contain ACS Service Type Code – not recommended.

21. OneCode ACS™ Availability • PARS and CFS use the Intelligent Mail® barcode to generate address corrections and make disposition decisions • Letters and flats can use the Intelligent Mail® barcode to request OneCode ACS service • First-Class Mail®, Periodicals, and Standard Mail® are eligible • Address Service and Change Service treatments are available with options to tailor the service to the mailers’ needs

22. OneCode ACS™ future expansion • Package Services barcode planned to contain the same Service Type Codes as the Intelligent Mail® barcode • Additional ancillary services for First Class Mail® and Standard Mail • Additional service options to existing ancillary services for Standard Mail ®

23. For More Information: RIBBS Intelligent Mail Barcode Resource Download Site: http://ribbs.usps.gov/onecodesolution Be sure to read the Publication 8B, February 2008 version!

24. Acquiring a OneCode ACS™ Mailer ID • Will you be using OneCode Confirm™? • If yes, you must acquire your Mailer ID from Confirm, and register it with ACS on PS Form 3573. • If not, you may contact your local Mailpiece Design Analyst

25. I have my Mailer ID, what’s next? • You will need to prepare 50 sample mailpieces and submit them to the ACS™ department for evaluation. • ACS will advise you of the pass or fail of the barcode for automation, and will review the content of the barcode for correctness. • ACS will review the placement/wording of any printed endorsements

26. My samples have been approved! • Fulfillment is on the mailer’s choice of schedule – daily, biweekly, weekly, bimonthly, or monthly. • Fulfillment is available on RIBBS – users are provided with a login and password that gives them access to only their own records. • Each fulfillment consists of a data file of records, and a separate shipping notice providing record types and counts

27. I have my records – now what? • Update your files with new addresses, review “nixie” records to determine suppression or further steps to correct them.

28. TM ACS TM ANKLink TM NCOALink TM AEC / AECII DPV TM TM LACSLink TM CASS Certified Software AchieveTotal Address Quality Update Validate Standardize

29. For More Information www.ribbs.usps.gov www.usps.com/ncsc Customer Support 1-800-238-3150

30. Thank you