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DMA STATEMENT RE: HOUSE POSTAL REFORM BILL DISCUSSION DRAFT

CHICAGO, May 4, 2004 – The Direct Marketing Association (The DMA) today voiced its support to Members of the U.S. House of Representatives who have released a discussion draft of a postal reform bill, ensuring that this issue will continue to build momentum in the 108th Congress. Postal reform legislation is critical to ensuring the viability of the U.S. Postal Service (USPS) into the 21st century, and is of vital importance to the members of The DMA, The DMA Nonprofit Federation (DMANF), and indeed, all corporate and nonprofit mailers.

The DMA is currently reviewing the specifics of the 126-page draft and expects to have a more detailed analysis in the coming days.

The DMA, the DMANF, and other stakeholders have long held that the viability of the world’s largest postal network, and the more than nine million Americans whose livelihoods depend on it, are in jeopardy unless comprehensive postal reform legislation is passed through Congress and enacted into law.

"The Postal Service is being increasingly impacted by the changing the communications and delivery landscape," said H. Robert Wientzen, president & CEO, The DMA. "Its legacy business model and structure is counterproductive to the Postal Service’s ability to perform its most vital function: ensuring the universal availability of reliable, affordable postal services."

"The DMA will continue to work cooperatively with Members of Congress, the mailing community, and USPS management and employee groups to get postal reform legislation enacted this year," said Wientzen. "The Postal Service, its stakeholders, and indeed, our nation, cannot afford to let the postal ‘death spiral’ continue. We need legislative reforms as soon as possible in order to prevent imminent double-digit rate increases that will ripple throughout our economy."

It is critical that the entire direct marketing industry remains engaged and involved in this important endeavor as we work to ensure a more sustainable business model for the U.S. Postal Service.

About The DMA

The DMA is the leading trade association for businesses interested in interactive and database marketing, with nearly 4,700 member companies from the United States and 53 other nations. Founded in 1917, its members include direct marketers from every business segment as well as the nonprofit and electronic marketing sectors. Included are catalogers, Internet retailers and service providers, financial services providers, book and magazine publishers, book and music clubs, retail stores, industrial manufacturers and a host of other vertical segments, including the service industries that support them. According to a DMA-commissioned economic-impact study, direct and interactive marketing sales in the United States are projected to have surpassed $1.7 trillion in 2003, including $133 billion in catalog sales and $41 billion in sales generated by the Internet. The DMA's Web site is www.the-dma.org, and its consumer Web site is www.shopthenet.org.

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