Mailing/Fulfillment - Postal Trends

New Postal Rates Announced, but it’s not Over Yet! March 20, 2007—As everyone with an interest in distributing print by mail knows by now, new increased postal rates will take effect on May 14th, except for periodicals (i.e., magazines, newspapers and some newsletters) which have been delayed until July 15th. The impact of the increased postal costs is likely to result in a decline in print volume—how big a decline will vary by mail category or class and the mailer’s ability to achieve the maximum postal discounts available under revised work-sharing rules. Magazine Increase Delayed, but Not Forgotten The USPS Board of Governors delayed instituting

Request Reconsideration for Some Mail Classes; Approve Shape-Based Pricing Board of Governors Set May 14 for New Prices WASHINGTON, DC—03/19/07—The Governors of the U.S. Postal Service (USPS) today approved an increase in the price of a First-Class stamp to 41 cents, authorized the issuance of the Forever Stamp, approved shape-based pricing, and set May 14 as the date for implementation of these changes. (See chart below.) However, they delayed implementation of new prices for periodicals and requested reconsideration for some mail classes. USPS proposed new rates on May 3, 2006, and the Postal Regulatory Commission (PRC) issued its recommendation on Feb. 26, 2007. The Governors spent considerable

Murray D. Martin Appointed President and Chief Executive Officer; Michael J. Critelli Named Executive Chairman STAMFORD, CT—03/19/07—Pitney Bowes Inc. (NYSE: PBI) today announced a new executive leadership structure to position the company for continued growth in a changing environment. Effective May 14th, Murray D. Martin, the company’s President and Chief Operating Officer, will become President and Chief Executive Officer. Michael J. Critelli, the company’s Chairman and Chief Executive Officer, will assume the newly created position of Executive Chairman. Effective immediately, Mr. Martin also is appointed to the company’s Board of Directors. As CEO, Martin will assume full strategic and operational responsibility for the company,

RESTON, VA—Visitors to GRAPH EXPO will see more machinery, more top brand manufacturers and more innovative processes than at any other industry exhibition and conference in the Americas this year. Held in the mammoth McCormick Place South, September 9-12, 2007, in Chicago, IL, GRAPH EXPO’s dedicated Mailing & Fulfillment Center will be more comprehensive than last year, with the largest showcase of mail processing, sorting, stamping, weighing, addressing and preparation equipment in one place. Space sales in the Center at the same time in 2006 totaled over 25,000 square feet with 42 exhibitors, and it has already grown by nearly 10%, with well over

Collaboration Will Help to Identify Emerging Postal Issues and Facilitate Education PHILADELPHIA—March 2, 2007—Printing Impressions, the most influential journal for printing and graphic arts worldwide, today announced a partnership to sponsor mailing education programs developed by The Bennett Group, Inc of Rochester, NY Mark Michelson, Editor-in-Chief of Printing Impressions states, “Our goal has always been to keep printers informed, inspired and enlightened and the upcoming USPS postage rate increase is the most crucial concern facing our industry today. By affiliating ourselves with the mailing training products, programs and services of The Bennett Group, we continue our commitment to lead the way in addressing

THE GREATEST opportunity to increase your print revenues is right here, right now! And the opportunity is sitting smack in the middle of the U.S. Postal Service’s postage rate increase of May 2007. The USPS is proposing that we change the way we calculate the postage on First Class mail. Currently, postage rates are based on the weight of the piece: one ounce, two ounces, etc. But in May the First Class rates are proposed to be calculated using a combination of weight and shape. This is not a new concept coming from the USPS. In fact, weight/shape-based rate calculations have been in place

FOR THOSE of us who work in the postal world every day, a rate case is an interesting but not overwhelming event. Most of us generally understand where it comes from, how it’s litigated and what it all means in the end. But for many professionals—such as printers—who may be less directly involved in the production of mail, the arcana of postal matters gets even murkier when there’s a rate case. So, as the current case is drawing to a close, it might be useful to step back, consider what it’s all about and draw some general conclusions. First, don’t get confused by the

ARE PRINTERS ‘getting it’? What does that mean? Does it mean that they are not diversifying by utilizing fulfillment? The answer is an emphatic no. In fact, more and more printing companies are entering the fulfillment business sector to make their companies more viable in the future. The promised reward for printers diversifying into fulfillment is that it takes them out of the commodity-driven print marketplace. That selling these solutions will take the focus off of print pricing, and that both print volumes and profit margins will increase with print/fulfillment clients. I can report this, in fact, to be a true statement. Fulfillment

WASHINGTON, DC—December 20, 2006—Congress passed H.R. 6407, the “Postal Accountability and Enhancement Act,” on December 9, 2006. The legislation, which provides a 10 year postal rate cap mechanism and creates new management efficiencies at the United States Postal Service (USPS), was signed by President Bush today. H.R. 6407 marks the first major legislative overhaul of the USPS in three decades. PIA co-founded the Coalition for a 21st Century Postal Service, a diverse group of industries and labor that led the charge for passage of postal reform legislation. The following statement is from Michael Makin, President & CEO of Printing Industries of America/Graphic Arts Technical Foundation

WASHINGTON, DC—December 11, 2006—The Printing Industries of America (PIA) today hailed this weekend’s passage of H.R. 6407, the Postal Accountability and Enhancement Act of 2006, approved by both the U.S. House of Representatives and the U.S. Senate in the final hours before both chambers adjourned the 109th Congress sine die on December 9, 2006. Passage of comprehensive postal reform legislation was PIA’s number one legislative goal this Congress. PIA is a co-founder of the Coalition for a Twenty-First Century Postal Service, a bipartisan coalition of business, industry, and labor groups that led the fight for updating the nation’s postal laws. “PIA commends lawmakers for finishing the