Association of Priority Mail Users, Inc. 8180 Greensboro Drive, Suite 1070 McLean, VA 22102-3860 (703) 356-6913 (phone)

1. Association of Priority Mail Users, Inc. 8180 Greensboro Drive, Suite 1070 McLean, VA 22102-3860 (703) 356-6913 (phone) (703) 356-5085 (fax) www.apmu.org apmu@mindspring.com

2. History of APMU • Organized — December 16, 1993 • Incorporated — February 2, 1994 • Joined MTAC — October 19, 1994

3. APMU Mission APMU brings together those with a common business interest in Priority Mail for the purpose of maintaining rates and service at competitive levels

4. APMU Priorities • Keeping Priority Mail rates competitive • Improving service • Obtain Open & Distribute discounts for Priority Mail • Rates reflecting different costs incurred for mail entered by commercial & retail Priority Mail users

5. APMU Past Presidents Terry Blanton – District Photo Jon Wittnebel – CTC Lori Ware – Amway (Alticor) Joseph Renna – Medco Rob Laybourn – Northrop Grumman

6. APMU Officers President Joyce Bagby, R. J. Reynolds Tobacco Co. Vice President Bill Terry, Eddie Bauer Fulfillment Services, Inc. Secretary Bill Stevens, District Photo, Inc. Treasurer Rob Laybourn, Northrop Grumman

7. APMU Staff Economic Counsel Dr. John Haldi Haldi Associates, Inc. Legal Counsel William J. Olson William J. Olson, P.C. Government Affairs & Membership Lyle Ryter

8. APMU Communications • Conduct Quarterly APMU membership meetings during MTAC week • Communicate regularly on Priority Mail issues with Postal Service senior staff • Attend MTAC meetings and participate in select MTAC committee activities • Provide written minutes of Washington DC meetings of the Postal Service Board of Governors

9. APMU Communications • Report regularly on association activities • Issue bulletins on urgent issues affecting Priority Mail • Conduct periodic conference calls between APMU members and senior postal officials • Host APMU Breakfast & Briefing sessions at NPF, hosting speakers such as PMG Jack Potter, SVP-Operations Bill Galligan, then Deputy PMG John Nolan

10. Contribution to Postal Service Institutional Costs(FY 2005, USPS-LR-L-2) ClassContribution (Millions) 1 First Class 18,888.40 2 Standard Mail 7,929.20 3 Priority Mail 1,328.40 4 Express Mail 364.40 5 Package Services 153.40 6 Periodicals (-222.90)

11. APMU SELECTED ACCOMPLISHMENTS • On September 4, 2002, APMU staff concluded a Summit Meeting exclusively on Priority Mail with Patrick Donahoe (COO), Anita Bizotto (CMO), Nick Barranca (Vice President, Product Development), and other senior USPS officials. • On October 31, 2002, APMU initiated a series of six monthly teleconferences with then COO Pat Donahoe and his staff on the ways to improve service and rates for Priority Mail. We continue our dialogue with these USPS leaders as problems arise. • On June 17, 2003, APMU intervened with the Postal Rate Commission (PRC) supporting Docket No. MC2003-2, the new Experimental Parcel Return Service. • On June 20, 2003, APMU filed an opposition to a USPS request for more delay in PRC Docket No. RM2003-3, which dealt with Commission access to USPS cost data. The PRC ruled in favor of the APMU position. • On November 19, 2003, APMU submitted testimony to the Senate Committee on Governmental Affairs on the Recommendations of the President’s Commission. • On March 23, 2004, submitted testimony on postal reform legislation to the House Government Reform Committee.

12. APMU SELECTED ACCOMPLISHMENTS • On June 23, 2004, APMU intervened with the PRC on Docket No. MC2004-2, Experimental Priority Mail Flat Box Rate. • On November 9, 2005, APMU submitted a letter to USPS Board of Governors objecting to the timing of the implementation of the 2006 postal rate increase. • On February 5, 2006, APMU issued its endorsement of the John Nolan “Cooling Off Period” Proposal for Consideration of Postal Reform Legislation. • On March 7, 2006, APMU intervened with the PRC on Docket No. N2006-1, Evolutionary Network Development Service Changes, 2006. • On May 5, 2006, APMU submitted a letter to USPS Board of Governors on Postal Reform Legislation. • On May 31, 2006, APMU intervened in PRC Docket No. R2006-1, the Omnibus Rate Case. • Met with White House staff, Chairman of the House Government Reform Committee and staff from the House and Senate to discuss concerns with postal reform legislation.

13. APMU Activities • Represent interests of Priority Mail users with Postal Service, Capitol Hill, Government Accountability Office staff • Develop research reports on legislative, regulatory and postal operations issues • Participate in select MTAC committee activities

14. APMU Activities • Provide information to Postal Media • Intervene in and defend interests of users before the Postal Rate Commission (PRC) in all relevant rate and classification cases

15. Importance of MTACto APMU • Regular quality information • Access to USPS operational and policy staff • Opportunity to learn the “state of the art” within an industry and across mailer groups • Opportunity to shape USPS policy through participation in workgroups • Opportunity to shape individual company policy through insights into USPS plans