DMA Praises Postal Service Governors for Embracing New Ratemaking Regulations

Mailers Experience Last Rate Case Under Old System

Washington, DC, November 15, 2007 — The Direct Marketing Association (DMA) today commended the Postal Service Governors’ decision to use the Postal Regulatory Commission’s (PRC) new regulations to adjust future postal rates. According to the Postal Accountability and Enhancement Act that was signed into law in December of 2006, future price increases of mailing services adjusted under the new system must be capped at the rate of inflation.

“We are thrilled by today’s news from the United States Postal Service Governors,” said Jerry Cerasale, DMA senior vice president for government affairs. “Mailers around the country should be elated that the antiquated, costly, and adversarial rate case proceedings are now nothing more than a part of American history. I am happy to report that our members that the direct marketing community has experienced its last rate case under the old regime.”

The Postal Service Governors did have the option of filing one last rate under the old system. The Governors abandoned the regulations used for more than 30 years and voted yesterday to proceed under the new pricing regulations that were delivered eight months ahead of schedule by the PRC.

“We appreciate the efforts of everyone involved in this complicated and arduous process that we believe will make the postal service stronger and more financially viable for the generations to come. Yesterday’s decision by the Postal Governors would not have been possible without the efforts of PRC Chairman Dan Blair and his commitment to deliver on his extraordinary promises to the business community,” continued Cerasale.

The new regulations, issued October 29, 2007 by the PRC, address rate adjustments for market dominant products of the United States Postal Service (USPS), as well as competitive products and the establishment of a Mail Classification Schedule, which categorizes products as either market dominate or competitive.

“We were pleased to have been able to represent the views of both commercial and nonprofit mailers on this important issue,” added Cerasale. “We are committed to continuing those efforts on behalf of all DMA members as we work to implement additional provisions of the Postal Accountability and Enhancement Act.”

About Direct Marketing Association (DMA)

The Direct Marketing Association (www.the-dma.org) is the leading global trade association of businesses and nonprofit organizations using and supporting multichannel direct marketing tools and techniques. DMA advocates standards for responsible marketing, promotes relevance as the key to reaching consumers with desirable offers, and provides cutting-edge research, education, and networking opportunities to improve results throughout the end-to-end direct marketing process. Founded in 1917, DMA today represents nearly 3,600 companies from dozens of vertical industries in the US and 50 other nations, including a majority of the Fortune 100 companies, as well as nonprofit organizations.

In 2007, marketers — commercial and nonprofit — are forecast to spend $173.2 billion on direct marketing in the United States. Measured against total US sales, these advertising expenditures will generate approximately $2.025 trillion in incremental sales. In 2007, direct marketing will account for 10.2 percent of total US gross domestic product. Also, there are today 1.6 million direct marketing employees in the US alone. Their collective sales efforts directly support nearly 9.0 million other jobs. That accounts for 10.6 million US jobs.

The Power of Direct: Relevance. Responsibility. Results.

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