July 6, 2010

Postal Service to Seek January 2011 Price Change

As outlined in the Postal Service’s action plan presented on March 2, price changes are one of a series of solutions that we are pursuing to become financially sound.

Later today, we will file with the Postal Regulatory Commission (PRC) a price change proposal for our Market Dominant products, which includes First-Class Mail®, Periodicals, Standard Mail®, Package Services and Special Services.

If approved as proposed, the new prices would take effect on January 2, 2011 – almost two years since the Postal Service™ last raised prices for Market Dominant products. We are seeking an average price increase of 4 to 6 percent for the majority of Market Dominant products.

The prices we are proposing can be viewed online on Postal Explorer® at pe.usps.com. Click on the links in the left frame under “*New* Jan. 2, 2011 Proposed Pricing Information.”

The PRC has 90 days to review and make a final ruling on the filing. The PRC can accept or reject all price requests or modify the prices as it deems appropriate.

The Postal Service receives no tax dollars for operating expenses, and relies on the sale of postage, products and services to fund its operations.