For Internal Use Only

BACKGROUND:

Prices for most Postal Service mailing services will change on January 22, 2012. Mailing services includes First-Class Mail, Standard Mail, Periodicals, Package Services and Extra Services. Prices for shipping services will also change on January 22. We will provide customers the new shipping services prices later this fall.

While actual percentage price increases for various products and services varies, the overall average price increase across all mailing services is capped by law at 2.1 percent, the rate of inflation as measured by the Consumer Price Index.

FIRST-CLASS MAIL HIGHLIGHTS:

Letters (1 oz.) – 1-cent increase to 45 cents. This is the first increase in the price of a First-Class Mail stamp since May 2009.

Single-piece letters additional ounce rate – unchanged at 20 cents.

Postcards – 3-cent increase to 32 cents

Letters to Canada or Mexico (1 oz.) – 5-cent increase to 85 cents

Letters to other international destinations – 7-cent increase to $1.05

The second ounce will be free for First-Class Mail Presort pieces weighing between one and two ounces.

ADDITIONAL PRICE ADJUSTMENT HIGHLIGHTS:

The price increase for Standard Mail Letters is slightly below the overall average at less than 1.9 percent

A new 3-month pricing option will be available to rent PO Boxes for people on the move and others that need a PO Box for a shorter time period.

Delivery Confirmation will be free for several parcel products as the Postal Service continues to make tracking an integral component of parcels mailed at commercial rates.

PERCENTAGE OF PRICE CHANGE BY CLASS OF MAIL: