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!

Our Plan to !

Preserve Rural Post Ofces May 9, 2012!

Current Retail Locations!

Alternate Access!

Retail Mix!

39%

Customer Visits to Post Ofces!

27% drop - 3

50 million fe

wer visits to

POs!

Rural Post Ofces!

CLOSING THE COST GAP


Average cost to operate: $114,000 annually! Bottom 4,500 earn an average of $15,000 annually: equivalent to $52 and 4.4 customer window visits per day! Cost to serve is increasing, revenue and visits are decreasing !

Achieving a Retail Balance!

Situation!
Financial crisis!

USPS commitme nt to rural America!


Rural customers desire to preserv e Post Ofce!

88% of rural Pos t Ofces losing money! Rising costs to maintain Post Ofces!

Achieving a Retail Balance!

Solution!
New framework based on four options for rural Post Ofces!
Financial crisis!

88% of rural Post Ofces losing money!

Customers preference for more convenient access!

Four Paths for Rural Retail Access!


Maintain!
Maintain the Post Ofce with reduced retail window service hours to match customer need! Provide delivery service using either rural carriers or highway contract routes!

Deliver!

Need new photo

Engage!

Engage a local establishment within the community to establish a Village Post Ofce!

Merge !

Merge with a nearby Post Ofce and provide service from that location!
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Maintaining Rural Post Ofces!

Lobby and P.O. Box access! Modied window hours! Maintain ZIP Code ! Retain community identity !

Rural Customer Survey Results! Key Learnings 46% would prefer closing Post Office for alternate access

Rural Post Ofces!

Analyzed 17,728 rural Post Ofces! 4,561 to remain at 8 hours of window service! Starting review process for approximately 13,000 Post Ofces! Upgrading 400 Post Ofces from designated closure! Closing more than 100 non-operating Post Ofces! Rural Post Ofces will remain open unless community has strong alternative preference!

Next Steps!

Two-year Process with Phased Approach!

END OF MAY!
PRC ling! 90 Day ! PRC Review!

SEPTEMBER 2012 TO FALL 2014!


Phased implementation!

2012!

2013!

2014!

SEPTEMBER!
Community meetings with surveys begin!

FALL 2014!
Completion!

Rural Post Ofces!

OUR COMMITMENT TO EMPLOYEES


Methodical process, two year transition!
Options available for staying with the Postal Service!

Incentive to be provided!

Conclusion!
Preserves rural Post Ofces! Allows communities to retain identity and ZIP Code!

New Path Forward

Community Engagement

Postal Service will engage communities! Will obtain local input before changes are made!

Achieves Savings

Saves over half a billion dollars a year! Consistent with ve-year plan! Helps return Postal Service to nancial stability!