A Postal Rate Case Update

March 9, 2007

11:30 a.m. (EST)

Dear DMA Member:

What a week this has been for the mailing community! As you are probably aware, we have been working aggressively to let the US Postal Service (USPS) Board of Governors know that some of the specific rate increase recommendations issued by the Postal Regulatory Commission (PRC) on February 26 would be devastating to many of our commercial and nonprofit members.

I would like to take a moment to bring you up to speed on what has happened so far, and what we must prepare for in the weeks and months ahead.

But first, I want to personally thank everyone who joined DMA in this important fight and stepped up to the plate to respond quickly to our call to action.

The Board of Governors has received hundreds of comments from DMA members and others in the mailing community, and many of you have also copied your responses to the PRC Chairman and to your members of Congress. Your efforts have certainly sent a loud message to Washington that the PRC’s unexpected recommendations for flat-shaped mail will, if implemented, have negative consequences for many mailers.

What Happens Next?

In our own comments available here, http://www.the-dma.org/government/GovernorsLetter.pdf DMA has asked the Postal Governors to reject the PRC’s specific

recommendations for flat-shaped mail and to send them back to the PRC for reconsideration. We firmly believe that the PRC can mitigate the exorbitant rate increases for flat-shaped mail without having to alter its recommendations for other classes of mail.

Now we must wait to see what action the Governors will take. There are reports that the Board of Governors will act next week, but as of this moment, we do not have confirmation as to exactly when the Governors will announce their approval or rejection of the PRC’s recommendations. However, as soon as we have new information, we