DMA Calls for Quick Decision on Postal Rates

Washington, DC, June 5, 2007 — The Direct Marketing Association (DMA) is calling on the Governors of the US Postal Service (USPS) to quickly implement the rate reductions recommended by the Postal Regulatory Commission (PRC) for Standard Mail flats. DMA is also asking that the temporary rate relief be extended beyond the September 29 deadline recommended by the PRC.

“In recent months, we have sent a clear message to postal officials that the exorbitant increases in flat mail rates were unacceptable to the mailing community,” said DMA President & CEO John A. Greco, Jr. “We were pleased that the Postal Governors listened to our concerns and asked the PRC to reconsider it recommendations. Now we are hopeful that the Governors will quickly make this final step toward providing real rate relief for its flat mail customers.”

The PRC’s Second Opinion and Recommended Decision on Reconsideration, which was issued May 25, establishes a transitional temporary rate reduction of three cents ($0.03) for all Standard Mail Regular flats and two cents ($0.02) for Standard Regular nonprofit flats.

In a letter to the Governors submitted on Monday, DMA asked the Governors to approve the rate reduction without the deadline, leaving it in effect until the next postal rate change, likely in mid-2008, under the new procedures established by the postal reform law, which was signed by President Bush last December 20.

In the letter, DMA noted that the PRC “responded positively to the Governors’ (and the mailers’) concerns regarding the excessive increases initially recommended for Standard Regular flats. Now it is the Governors’ responsibility to implement the revised rates, and DMA urges the Governors to approve the Commission’s recommendation and provide mailers just as soon as possible with the rate relief recommended by the Commission.”

However, DMA also cautioned that the temporary discounts offered to flat mailers would only postpone substantial cuts in mailing volumes and a further decrease in revenues for the USPS.

“While even temporary relief from the rates initially recommended by the PRC would be appreciated, the proposed September 29th sunset of the reduced rates would result in a substantial rate increase at a particularly inopportune time of the year,” DMA wrote. ”Inasmuch as the reductions recently recommended by the Commission would result in rates still well in excess of those originally sought by the Postal Service in its May 2006 rate case filing, to provide this modicum of relief for only several months would seem to belie the Governors’ previously stated concerns.”

The full text of DMA’s June 4 letter to the Postal Governors is available online at www.the-dma.org/postal.

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About 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 more than 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 2006, marketers — commercial and nonprofit — spent $166.5 billion on direct marketing in the United States. Measured against total US sales, these advertising expenditures generated $1.93 trillion in incremental sales. Last year, direct marketing accounted for 10.3 percent of total US GDP. Also, there are today 1.7 million direct marketing employees in the US alone. Their collective sales efforts directly support 8.8 million other jobs. That accounts for 10.5 million US jobs.

The Power of Direct: Relevance. Responsibility. Results.

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