DMA President & CEO John A. Greco, Jr. Updates Members on Postal Rate Case

March 21, 2007 — Direct Marketing Association President & CEO John A. Greco, Jr. this afternoon e-mailed the following letter to DMA members, updating them on the status of the postal rate case.

The Governors of the US Postal Service (USPS) on March 19 approved most of the Postal Regulatory Commission’s (PRC) postal rate recommendations, which were announced on February 26. Most of the new rates are scheduled to take effect on May 14, 2007.

The Governors listened to DMA’s members and others in the mailing community and requested reconsideration of the PRC’s rate recommendations for Standard Mail flats (catalogs). The Governors also asked the PRC to reconsider recommended rates for the Non-Machinable Surcharge for First-Class Mail letters, and the Priority Mail Flat-Rate Box.

For additional information on the rate case, please visit DMA’s Web site at www.the-dma.org/postal.

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A POSTAL RATE CASE UPDATE FROM

DMA PRESIDENT & CEO JOHN A. GRECO, JR.

March 21, 2007

4:30 p.m. (EDT)

Dear DMA Member:

While we had some positive news from the Postal Governors on Monday, we still have quite a way to go before the postal rate case is completed and the final rates take effect. I would like to take a few moments to provide you with an update on where we stand.

First, I want to thank you once again for the many letters you submitted to the Governors, the Postal Regulatory Commission (PRC), and members of Congress. Your voices really helped make the case to the Governors that the PRC’s recommendations needed a serious second look.

That’s just what the Governors did. They have officially asked the PRC to reconsider its recommended postage increase for Standard Mail flats, as well as the rates recommended for the First-Class non-machineable surcharge and for Priority Mail flat-rate boxes. DMA continues to argue that the flat-shaped rates can be changed without raising the rates for any other mail.

Now, once again, we are waiting to see what the PRC will do. As of this afternoon, the PRC has not announced a process or timetable for making its reconsiderations. Based on historical precedent, the PRC is likely to establish an additional public comment period, although they are not legally required to do so. Once the PRC has announced its process, DMA will submit comments. We will also provide you with a call to action, along with the information you will need to make your individual voice heard.

In terms of the timing, we have asked the PRC to make its new recommendations quickly, as the effective date for the rate increases (May 14) is less than two months away. If the PRC has not made its new recommendations by that time, the recommendations made on February 26 will go into effect “under protest.” We are working hard to prevent that from happening. We know how difficult it would be to adjust — then readjust — your mailing systems if the PRC revises its recommendations.

Our Nonprofit Federation also continues to explore options to seek a delay in the implementation of the new rates for not-flat machineable mail. We were extremely disappointed that, while the Governors expressed concern for customers who would have difficulty in converting their mailings to more cost-effective shapes, they did not act upon nonprofit mailers’ requests to allow additional time to develop and test alternatives.

Obviously, this remains a very fluid situation. I give you every assurance that DMA is working aggressively on your behalf, and will keep you posted with all of the latest information.

In the meantime, if you have questions, I encourage DMA members to contact Jerry Cerasale, our senior vice president of government affairs in our Washington, DC office, at jcerasale@the-dma.org or 202.861.2423.

Sincerely,

John A. Greco, Jr.

President & CEO

Direct Marketing Association

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