**Minutes of the**

**Mailers\' Technical Advisory Committee**

**July 21-22, 1999**

**U. S. Postal Service Headquarters**

**Benjamin Franklin Room**

**Washington, D.C.**

**Welcome**

Postal Chair Art Porwick called the July 21 meeting session to order.
Apologizing for not sending a hard copy agenda in advance of the
meeting, he

reminded the members that the agenda and much other valuable information
is

posted on the MITS site and members were encouraged to take advantage of
this

valuable resource.

Mr. Porwick welcomed two visiting representatives of LA Poste, the

US Postal Service equivalent in France, Christophe Lopez and Christophe
Lecarme.

He also welcomed the following new member organizations to MTAC:

*The American Forest and Paper Association* - represented by John
Reamon,

Eastern Paper and Curtis Correll, International Paper.

*The Saturation Mailers Coalition* - represented by Haley Buckle and
Kelly Lombardi.

New representatives were welcomed from the Envelope Manufacturers
Association (Stephen Hart, the Association of American Publishers and
Craig Cecere, Newspaper Association of America ) - Bill Wilson, The
Miami Herald and Jim Dietz, The Chicago Tribune), and for the National
Postal Policy Council, Ted Metrof of State Farm Insurance.

Industry Chair Joe Schick announced a training post-meeting featuring
hands-on training session on MITS, inviting members to attend. He added
that Guidelines for Work Group Leaders had been printed and were
available, urging all members to review them. Finally, he announced the
tentative dates for Year 2000 MTAC meetings: February 2-3, April 19-20,
July 12-13 and October 11-12.

**Financial Update**

Bill Tayman presented a financial report through AP10 noting that in the
last accounting period, the bottom line was a net loss of \$103 million,
which was actually \$175 million better than anticipated. Revenues of
\$4.465 billion were slightly below

plan (\$76 million short), but expenses of \$4.435 billion were less
than anticipated by

\$76 million.

Year to date, Mr. Tayman said, the figures reflect a similar
revenue/expense performance. Revenues of \$48.630 billion were short of
projections by \$423 million; expenses of \$46.283 billion were lower
than expected by \$258 million. The net profit

of \$924 million was short of budget plan by \$193 million.

Revenue growth for the year, through AP10, has been 4.3 percent.
Although

mail volume has increased in all categories except international,
anticipated revenues were below plan in all but First Class (which added
some volume from Priority because of the weight changes in the new
rates). Total mail volume was up 2.9 percent for AP10 . Mr. Tayman
commented that Standard A volume in AP10 was down sharply, partly
because of the rate changes, and anecdotally partly because of reduced
sweepstakes mailing from bad publicity, growth in Internet advertising,
and disappointing holiday volume levels.

Mr. Tayman discussed the mechanics of managing expenses, noting that the
field operations performed well enough in AP10 to almost offset the
decline in revenues and to reduce its plan deficit by almost half. Also,
the trend in net income has improved such that net income for the year
will probably be better than anticipated.

In summary, Mr. Tayman stated that the net income gap had narrowed,
revenue growth was behind plan, there was positive improvement in the
expense trend. He closed by assuring MTAC that management continues to
be committed to financial constraint while maintaining or improving
service.

**Mail Fraud/Security of the Mail**

Ken Hunter, Chief Postal Inspector, reviewed the awesome numbers related
to the USPS \-- 200 billion pieces of mail going to 130 million
addresses, processed by 800,000 Postal Service employees working at
40,000 facilities, accepting \$60 billion in revenue. Maintaining
confidence in the integrity of that mail service are 4,500 members of
the Postal Inspection Service. Their areas of responsibility include
criminal

investigations (fraud, extortion, theft, drug traffic, hazards included
in mail, pornography), business investigations, protection of Postal
Service employees (e.g., against assault, robberies, etc.), response to
natural disasters to preserve Postal Service property and the mail, and
revenue protection. The Service protects not only the Postal Service
from losses related to fraud, but the Postal Service customers who may
be victims as well.

The Inspection Service chairs the Postal Service Action Group (PSAG)
which focuses on international mail \-- keeping dangerous items out of
the mail, preventing mail theft, protecting world posts from fraud
(e.g., counterfeiting of stamps and indicia), and maintaining public
confidence.

Mr. Hunter commented on some of the issues that are most current \--
theft of credit cards and checks, and especially the theft of identity
(Social Security numbers,

date of birth, employment, financials, etc.) which allows an individual
to cause much more damage to the victim. There is also protection of
fraud against the customers, businesses, and government agencies, which
resulted in 1,400 arrests and the restitution

of \$350 million.

Citing an example of the Postal Service\'s proactive role in reducing
mail loss,

Mr. Hunter described the establishment of a working that looked for a
solution to the major losses resulting from credit card theft about
seven years ago. The task force

group (that now numbers over 70 separate members and includes all
affected groups)

came up with the concept of card activation and a cooperative
arrangement among the credit card companies of sharing information in a
confidential database that helps

the Postal Inspection Service identify fraudulent activities. The group
developed and distributed \"best practices\" manuals covering the
mailing of items subject to theft, as

well as manuals in other areas. These policies reduced credit card
losses because of theft in the mail by more than 80 percent in the first
six years.

Now the working group is looking at the new crime wave, theft of
identity.

The perpetrators have increased their use of commercial mail receiving
agencies (CMRA). New regulations require each CMRA to register with the
Postal Service, customers must register for each name in which mail is
received, including a photo ID and, after a certain period, the address
on the mail must include the notation PMB,

similar to PO Box.

Finally, the Inspection Service is beginning to include cyberspace in
its purview, since commerce on the Internet usually includes use of the
mails, and the major .com companies (e.g., AOL, eBay, Amazon, etc.) are
aware of the importance of protecting their customers from mail fraud.

Mr. Hunter announced that the Postal Inspection Service has received the
Cressy Award, the highest honor presented by the Association of
Certified Fraud Examiners. This award is presented for the Inspection
Service's continuing work in maintaining the highest possible public
confidence in the mails by closing down criminal operations such as
credit card, rebate, and mail order fraud, and the Nigerian financial
solicitation fraud.

During discussion, topics included the identification of indicia fraud
(tampering with meters and counterfeiting) and the technical steps that
will result in the ability to identify non-valid pieces of mail and the
logistics, costs and perceived stigma and delay to the requirement for
CMRA customers.

**Revenue Assurance**

Angelo Wider, Manager of Revenue Assurance, reported that his group was
established, under the Controller and later under the CFO, Richard
Porras, to strengthen internal control and accountability of revenue
processes. The mission, in simple terms,

is to insure that the Postal Service is properly paid for services
rendered.

A small management group at Headquarters supports 105 analysts in the
field.

The activities include reviews of customer and internal accounts for
revenue protection purposes, reviews and recommendations regarding
policy related to revenue assurance, and an important communications
effort to educate employees and customers.

The efforts focus on loss of revenue from a wide range of products and
services, including official mailings (OMAS), Standard A, periodicals,
presort, etc. The concerns extend beyond simply spotting shortfalls in
revenue and include the need to deal with an extraordinarily complex and
extensive set of regulations and rates. Customers must also be protected
and an effort must be made to develop good customer relations,
especially since the product of the reviews is often additional
liability for the customer. Mr. Wider identified the major areas of
apparent revenue loss, from experience thus far, as Standard A,
Periodicals, Bulk Mail and OMAS. A major challenge at the outset was
training the analysts, an ongoing effort because of turnover and the
release of new policies and procedures.

Revenue Assurance partners with a number of internal groups including
the Inspection Service, Legal Department, Marketing, Operations, the
Inspector General and others concerned with tactical marketing, business
evaluation, operations and international services \-- and customers. The
output of some of these partnerships include a revenue assurance
checklist for use in the field, resolution of the policy on time
limitations and retroactive financial liability, and policy related to
responsibility-sharing.

Part of the customer relations program includes dissemination of
information about policies and procedures, an appeals process, contact
information so customers

will know who to call about an issue, and online services.

In summary, Mr. Wider pointed out that the revenue assurance process
promises fairness to both the customer and the Postal Service, a
positive financial impact, rate stability, information sharing, systems
and process improvement through the review process, and the appearance
and reality of integrity.

Discussion included questions about the length of the appeal process
(most completed within 45 days); about the cost effectiveness of the
program (\$7 identified for every \$1 of cost, about one-third
collected, the rest in appeal or litigation); and the response of local
clerks to revenue assurance regulations that sometimes slows down
service. There was also a brief discussion, without resolution, about
immunity from liability when the Postal Service approves a transaction,
a retroactive liability when the Postal Service does not incur
additional cost for the service provided, and the length of retroactive
liability.

**Periodical Work Groups**

**Periodical Service (Issue 19**)

Tom Tulley focused on the Chicago meeting scheduled for August 11-12.
Expecting more than 400 attendees, the program will include a keynote by
Chief Operating Officer, Clarence Lewis on the status of operations,
case studies on

successful programs, a Y2K update, an operations team report, an update
on periodicals operations improvements, a report from Headquarters on
marketing, an update on mail.dat and Postal One, a presentation on flats
automation, and an address by

Postmaster General Bill Henderson.

**Identifying Nonprofit Mailer Issues (Issue \# 38)**

Amy Gotwals reported that the group had met twice and had addressed
eligibility issues, and the Postal Service has agreed to a continuing
effort to resolve the issues that of concern to nonprofit mailers. On
the costing side, the Postal Service will develop some recommendations
to help mailers better prepare mail to keep costs down. The industry has
agreed to examine changes in mailing patterns that may affect costs.

**USPS/Industry Executive Exchange Program**

Joe Schick reported that an education/business planning forum was being
planned, working with outside facilitators to develop an agenda for a
format that would focus on business solutions, comparing the \"outside
world\" processes versus the Postal Service requirements.

Mr. Schick announced a new work group, led by Peter Moore, on electronic
certification/verification of requesters for publication. Mr. Moore
explained that requests for periodicals rates received over the Internet
or other electronic media are difficult for the Postal Service to
verify. This group will look at technology to solve that problem.

Pete Zeranski added that the forum would involve perhaps 15 USPS and 15
industry participants in a three\--day format program to work toward
helping Postal Service executives understand the decision-making process
in private industry and helping industry executives understand the
Postal Service business environment.

A pilot program should be conducted in March or April of next year.

**Y2K Update**

Nick Barranca reported on the status of the Y2K readiness effort, which
involves remediation, business continuity planning, component
contingency planning and recovery management.

Bringing MTAC up to date, Mr. Barranca stated that 136 of 140 critical
systems had been remediated and 135 had been verified by an independent
contractor. In mail processing, 36 of 38 systems have been remediated,
and 30 have been verified. In the IT environment, all 1,091 have been
remediated and verified. The suppliers, many local, have provided
assurance that is deemed acceptable that they will be Y2K ready.

Business continuity planning requires identity of mission-critical
activities (9 critical and 47 subcritical processes) and the development
of contingency plans for any or all system failures. The plans are
substantially complete. One area that is uncertain is the mailer
response to Y2K \-- will normal business routine change? Finally, are
there steps that can be taken to anticipate any outside failures that
may affect operations (e.g, supply of fuel for vehicles). There are also
component contingency plans for critical systems failures that are
integrated into the business continuity plan.

The final steps include creating a depository for the plans and
integration across all functional areas. Final there is a recovery
management process that applies a tactical plan for any failures which
may occur, not only in the operational areas, but beyond into all
functional areas, and will be in place during the December 31-January 1
transition, which happens to be a holiday weekend. Problems will be
resolved at the lowest operational level possible.

There has been a substantial communications effort to inform national
account managers and customers, including counter information at most
retail operations. There is also information on the web site about Y2K.
There is also no indication from mailers (through surveys) that there
will be any major change in mailing patterns at the end of the year.

The Postal Service is ready internally; and if there are external
failures, the business continuity plan is designed to deal with that.

# Address Management Issues

**Increasing Coding of Colleges and Universities (Issue \# 30)**

Thomas Roylance reported that the work group has developed a report with
recommendations for Postal Service review. There are still a few
concerns \-- district zip flags, using the term \"suite\" for offices,
certain abbreviations (e.g., building, bldg., bd., etc.) and the
acronyms that universities use. The work group will be finished by the
next MTAC meeting.

**ACS Issues (New work group)**

Jim Schemmel described the issues the new work group will address \--
the elimination of duplicate notices, the reduction of hard copy NIXY
returns from ACS processes, the ACS-only option, the allowance of
re-delivery to current resident. Interested members were invited to
participate in the new work group.

**Addressing and Zip+4**

In a dialog with Peter Moore, Mike Murphy made several points concerning
Zip+4. As good as the AEC is, finding an economic and viable method of
correcting addresses that are \"officially\" undeliverable is elusive.
An experiment outside the official Postal Service purview by Marcus
Smith was described whereby requests for manual correction of such
addresses was sent to various local postmasters with a 60 percent
response. Another recent effort which focused on the letter carrier\'s
\"edit book,\" which should contain all of the addresses the carrier
serves and should be a device to update the AEC. In a special program to
elicit change information from the carriers, a nudge, so to speak, the
volume of changes coming into the AEC increased by 10 percent in that
the subsequent two-week period. Mr. Murphy added that some of the
problems of the mailers relate to addresses to which the Postal Service
makes no delivery anyway, and to regulatory restrictions on revealing
information about an address (e.g., a corresponding PO box).

There was a general discussion about the whole issue of improving the
utility and accuracy of the Address Management System (AMS) and Mr.
Murphy described the technical changes being made in the system, noting
that the change do not address many of the mailer\'s concerns.

There was a brief discussion about the implementation of the CMRA plan
to require the use of PMB in addresses. Mr. Murphy noted that, although
the technical implementation could be made rapidly, the Postal Service
is responding to the various concerns of the interested parties by
extending the time period for implementation. He agreed that premature
implementation by field offices should be averted.

Asked about \"undeliverable as addressed,\" Mr. Murphy stated that a
major study by Price Waterhouse was underway to look at cost and volume
and a report on the results (including change of address) would be
presented at the Postal Forum. Concerning Move Update, he said that a
recent review of compliance revealed about 30 percent of companies (in a
sample of about 150) were non-compliant, and that many compliant
companies were simply using endorsement, which was contrary to the goals
of the program. He added that, in spite of the unexpected problems, Move
Update, the NCOA program, Address Change Service and Fast Forward have
all shown very positive results.

At 4:25 p.m., the meeting was recessed until the following day at 8:00
a.m.

**Minutes of the**

**Mailers\' Technical Advisory Committee**

**July 21-22, 1999**

**U. S. Postal Service Headquarters**

**Benjamin Franklin Room**

**Washington, D.C.**

**Opening/Welcome**

Postal Vice Chair Jay Freitas called the July 22 meeting session to
order.

**Report of the Communications Committee**

Tom Roylance reported that the Communications Committee, working on the
Postal Forum program, agreed to forego the prizes/incentives approach in
favor of an informative presentation of the history of MTAC with an
opportunity for discussion and reception after the presentation.

The Committee agreed to change the name of the annual report to, \"MTAC
--

Year in Review.\" Work group leaders are asked to quantify
accomplishment \-- in dollars, volume, labor savings, etc.

New member orientations will be resumed and will be conducted at least
every other MTAC meeting. Finally, Mr. Roylance asked about the utility
of the MTAC minutes, which arrive a month or so after the meeting. He
suggested that the presentations should be prepared in advance for
distribution at the meeting.

**Engineering and Technology Work Group Update**

**Window Size and Position for Envelopes (Issue #36)**

Sherry Suggs reported that a recent meeting was focused on identifying
the issues, scope and impact of window size and positioning.

**Drop Ship Appointment System (DSAS) Enhancements (Issue \# 27)**

Jim Magellan announced that DSAS web support is online in the Seattle
service area (as of July 12), and rollout for the remaining service
areas will continue at a rate of about one per week, to be completed by
the end of August. Rollout will focus on service areas rather than
corporate structure (districts, etc.). In anticipation of DSAS online
service, users should review their hardware and software, direct line
access, Internet provider service capability and anticipated volume.

**Barcode Compliance \-- Merlin**

Paulette Kelly (Business Mail Acceptance Group) discussed barcode
acceptance and accuracy. In the short term, there are standard operating
procedures for acceptance of automated letters and flats in two parts
\-- compatibility (size, shapes, weights, etc.) and barcode quality
(readability, location, skew, etc.). In the long term, the Postal
Service will implement the use of Merlin (mailing evaluation look-up
instrument) which will ultimately replace ABE. Verification will be made
on a random sample basis.

Merlin will check and record readability, address accuracy, mail piece
characteristics, piece count, tray label accuracy, meter postage,
pre-sort make-up verification, short-paid and VAR/combo mailing
characteristics. It will accept a piece from postcard size up to 15
inches by 15 inches, up to 16 ounces. Merlin will print a unique ID code
on each piece. All of this information is stored and can be retrieved
(ABE provides only a pass/fail result). The speed of the simultaneous
recording is reflected in the fact that a current two-hour job will take
only 15 minutes on Merlin.

The timeline for deployment begins with a second generation prototype
test that will begin in the fall, last for 3 months and, if acceptable,
decision analysis will take another six months and deployment should
begin by the fall of 2000. Potentially, 500 machines will be installed
over about a year.

**Presort Optimization**

Joe Lubenow noted that implementation of LOO-1 and package reallocation
and he commended the three major presort software vendors for getting
the acceptable software out in the field. The work group recently
developed a phase two agenda \-- a package of items that can be
implemented by the middle of next year. Specifically, items included
combining automated and non-automated pieces on the same pallet or same
sack; including offshore material on DBMC pallets (e.g., Guam and
Alaska); transforming a presort by adding/deleting individual records;
and mixing periodicals and Standard A mail on DDU pallets. The next step
is to invite informal comments on these and other issues with a final
list to be decided as soon as practicable.

**Integrated Services Database (New Issue)**

Robert Lindsay explained the need to establish a standardized,
multipurpose, centralized database of postal facilities to support the
mailing industry in the integrated key processes of mail preparation and
sortation, container labeling, mail acceptance and verification
(Mail.dat), electronic-based postage payment systems (Postal One), and
mail tracing and tracking.

This work group would look at the challenge of bringing many of the
separate electronic systems and processes together into an integrated,
accessible system updated on a periodic basis (at least monthly) and
have a single source Postal Service responsibility for its maintenance
and currency.

Mr. Lindsay invited members interested to participate in the work group.

**First Class Work Group Update**

**Postal Service Tabbing**

Discussed briefly at the last meeting, Dan Minnick updated the MTAC on
Postal Service tabbing of mail pieces. Since there was a dramatic
economic advantage to processing tabbed versus folded mail pieces,
various facilities began to tab the folded pieces without permission of
the mailer. In some cases, larger flats were both folded and tabbed.
Mailers perceived that a tabbed piece was less effective than a folded
piece (response rate was lower). On request, a meeting was held and the
Postal Service immediately agreed to cease all folding of mailer\'s ads.
The Postal Service agreed to allow a mailer to order that a mailing be
handled manually by endorsing the tray label \"NON-OCR,\" which is
already part of the regulations, and for which a premium is paid. Once
in the manual stream, the piece would not enter any automated procedure,
including tabbing. The Postal Service will communicate to the industry
the importance of the proactive choice of the NON-OCR endorsement
(failure to endorse mail may result in involuntary tabbing). Mr. Minnich
reminded the members that the Postal Service has numerous precedents for
upgrading mail (e.g. adding barcodes, making the mail more compatible
with automation equipment) once it has been deposited in the system.
This exception is a regulation that allows preservation of the manual
handling of the mail.

**Business Reply Mail (New Issue)**

Chuck Fattore introduced a new issue and invited members to indicate
interest in participating in a business reply mail issues work group.
Before approval, an informal review of the need and the issues
(accounting and/or service related) will take place.

**IBU World Conference**

Bob Michelson the World Conference on Direct Mail and Universal Postal
Union Congress that will be held in Beijing in August (23-26). The UPU
is composed 189 members, every country that has a postal administration.
It meets every five years to review the rules and regulations related to
international mail. This time the Congress

will focus on direct mail which has become a major economic factor, even
though it is highly developed only in the United States.

The Conference is a four-day event \-- day one, opening ceremonies; day
two,

the Conference agenda; day three, customer day; and day four,
excursions. The Congress lasts for over three weeks. There will be
discussions and presentations focusing on technical issues, terminal
dues and rates and agreements that pertain to private service providers.
This is the first time the meeting is open to customers and suppliers
and private mail services and provides an opportunity to learn about
direct mail worldwide and to begin to network at the foundation of
increased international interest in direct mail.

The Direct Mail Advisory Board (DMAB) is an organization mainly composed

of U.S. companies that provide technical advice to the Union and to
postal administrations around the world. The International Mail Action
Group (IMAG),

a small American group, will also meet to discuss issues germane to the
United States.

Lee Emerson discussed issues from the U.S. perspective that will be
considered at the Congress. She stated that the State Department, for
the first time, is the primary representative of the U.S. and the
delegation will include representatives from the USPS, Commerce, PRC,
USTR and DMAB.

Issues that will be included on the U.S. agenda will include universal
service obligation, public and non-public service providers, competition
and regulation and the role of regulators. The State Department has
proposed a reform that will separate government and private operators, a
UPO that supports both public and private service suppliers, equality of
terminal dues and rates for both, elimination of the re-mail provisions,
and reform of customs procedures. It will recommend a special Congress
in 2001 to enact these reforms.

The private operators want no distinction between their own operations
and those of the universal service providers (postal administrations),
except that they do not want universal service obligations.

Ms. Emerson reviewed the terminal dues, current and proposed, a very
complex issue, that provide different rates for industrialized countries
(which handle most of the mail) and developing countries.

**Standard B Work Group Update**

**Parcel Service Improvement Work Group (Issue #33)**

Phil Parizino reported that the work group\'s work was complete. The
parcel service levels in the Detroit area have improved, falling a
little short of the original goal. The Business Service Network has also
shown improvement in response, especially in the Midwest. The work group
agreed that it was important for a mailer to be able to pinpoint service
problems to at least a three-digit, and preferably a five-digit, level.

**Increased Parcel Volume in Mail Recovery Centers (Issue \# 37)**

Arron Horowitz announced the first organizational meeting, well attended
by both mailers (15 present) and the Postal Service (6 present). After
reviewing the history of the MRCs and the changes that have already been
accomplished, the work group considered the high volume of parcels (1.4
million last year). After looking at mailer issues (labeling, packaging,
etc.), the work group considered Postal Service responses. There was
concern about the way endorsements were processed, especially the
\"change service requested\" endorsement; and the need for training,
especially in the \"loose in the mail\" area. There is a clear Postal
Service commitment to address the issue.

**Fall Mailing Season**

Jay Freitas introduced Pat Mendonca, commending him for his work on the
planning group for the past two years.

Mr. Mendonca noted that the fall season was from August through
Thanksgiving. As before, the group is building on past year experiences
and successes, focusing more on events that were identified in reviewing
the past year. Internal volume forecasts indicate that volume increases
should range between 3 percent and 5 percent. Large customers predict a
7 percent increase and a consultant for the advertising market predicted
that ad mail will increase 6 percent and direct mail about 4 percent.

Last year, staffing was managed by hiring career replacements early;
this year the focus will be on part-time and casual labor, especially
since there is flexibility in the union agreements. Challenges in MTE
last year prompted more funding for the fall 1999, purchases now to
insure supply in the fall, and the inclusion of the Inspection Service
to evaluate operating conditions.

Headquarters is communicating more aggressively about service and
reliability to compensate for the strong general messages about
financial constraints that are currently going out to the field. There
is also a video about fall season service for distribution through the
system.

Mr. Mendonca outlined the planning procedures which included a customer
planning group, volume forecasts, identification of events and locations
that experience stress in the last fall season and then development of
the performance cluster (PC) checklist and area plans which were
completed in mid-July. The plan includes communications, attention to
DSAS, MTE and transportation, and contingencies.

The Inspection Service will again be involved with regular reviews,
reports of which are rapidly returned for response. Another tool that
was used effectively last fall was the entry guidelines and the early
warning system, which provides a visual status for facility conditions.
The Business Service Network will be the focal point for problem
resolution, supported by communications from the account managers.

Summarizing, Mr. Mendonca said the plan is an improvement over last
year\'s successful operation, with a focus on events and locations that
caused some stress in 1998 and continuous monitoring and communications.

**Standard A Work Groups**

> **Mail.dat (Issue #14)**

Dan Minnick reported that the specification for 98-2 will be available
in mid-August, including a new version of the User\'s Guide. A brochure
will also be published that will describe the benefits of using the
viewer of Mail.dat in lieu of documentation.

In the work group meeting, a new work group was established to be
composed of the software vendors and commercial software writers
utilizing Mail.dat. The group will create a new level of detail for
testing Mail.dat performance.

Finally, Mr. Minnick said notice would be published in September for
meeting in October for the 00-1, the new specification that would be
implemented with the 2001 rate case.

**Postal One (Issue \# 13)**

Mr. Minnick stated that system capacity testing continues and any
customer may submit data. The interactive phase of the testing will
begin in September, which will allow feedback from the integrated Postal
One database. Fifteen sites will offer full blown Postal One services by
the first quarter of calendar 2000 \-- postage payment, verification,
interactivity \-- and it will expand rapidly from there. Mailers who
want to participate in the testing should contact Dana Nacke (202) 678
6791.

**Closing Remarks \-- Adjournment**

Mr. Freitas emphasized the importance of early communications with
regard to the fall mailing season. The meeting adjourned at 11:30 a.m.