FOR IMMEDIATE RELEASE Contact: Media Relations 202-268-2155 November 3, 2003 Release No. 083 www.usps.com VALIDATED REALITY ECLIPSES PERCEPTION WASHINGTON, DC - In the nation's capital, whatever the facts, perception is reality. For the Postal Service, perception is how customers feel about their mail service, and reality is how well it's delivered. Both are independently measured. Neither has been better. The realities of a 95 percent on-time overnight delivery coupled with a 94 percent positive customer satisfaction perception validate the Postal Service's highest combination score ever. "Each and every member of our dedicated postal family should be proud of this accomplishment," noted Vice President and Consumer Advocate Francia G. Smith as she detailed the surveys' results. "Our customers recognized that our employees have stepped up to the plate and delivered with a smile." In making her remarks during the Postal Service Board of Governors at their meeting here, Smith said that the most recent customer satisfaction survey shows 94 percent of households nationwide reported having a positive view of the Postal Service - the highest score ever. Smith also reported that overnight First-Class Mail maintained the milestone score of 95 percent on-time overnight delivery service performance during Postal Quarter IV, the period between May 17 and September 5, 2003. This is the sixth consecutive quarter First-Class Mail delivery hit the 94 percent and above benchmark, and the third consecutive quarter at 95. Perception Customer Satisfaction Measurement for households is independently measured by The Gallup Organization which conducts surveys on a variety of postal issues and services from a customer's perspective. These include accuracy and consistency of delivery; retail clerk courtesy, knowledge, and responsiveness to customers; and telephone courtesy and accuracy of information provided, to name a few. The Postal Service uses survey results to identify opportunities to improve customer satisfaction. Reality First-Class Mail delivery performance is measured externally and independently by IBM's Business Consulting Services unit, using the External First-Class measurement system, or EXFC. It provides an independent assessment of the time it takes a piece of First-Class Mail, once it is deposited into a collection box, to be delivered to one of the more than 140 million American homes, businesses and post office boxes that are serviced six days a week. The Postal Service maintains a system of 85 management units by geographic areas, known as Performance Clusters (PCs). According to Smith, five PCs achieved on time delivery performance scores of 97 percent: Portland, OR; Erie, PA; Spokane, WA; Northland (Western WI and most of MN); and Hawkeye (Most of IA and the Rock Island Area of IL.). In other action, the Board approved funding to automate the placement of lids on mail trays that hold newspapers, magazines, catalogs and other flat type mail. Until now, lids have been manually placed on flat mail trays that are transported extended distances. This approval to purchase 120 Automated Flat Tray Lidders will permit deployment to begin next March and be completed by June 2004. The Board also approved funding to purchase 2,014 cargo vans to replace its aging fleet that transports mail from processing centers to delivery units in larger cities. Deployment will begin in April 2004 and be completed by March 2005. Since 1775, the U.S. Postal Service has connected friends, families, neighbors and businesses by mail. It is an independent federal agency that makes deliveries to about 140 million addresses every day and is the only service provider to deliver to every address in the nation. The Postal Service receives no taxpayer dollars for routine operations, but derives its operating revenues solely from the sale of postage, products and services. With annual revenues of more than $66 billion, it is the world's leading provider of mail and delivery services, offering some of the most affordable postage rates in the world. The U.S. Postal Service delivers more than 43 percent of the world's mail volume - some 203 billion letters, advertisements, periodicals and packages a year - and serves seven million customers each day at its 38,000 retail locations nationwide. - 30 - EXFC Overnight Service Results MAY 17, 2003 - SEPTEMBER 5, 2003 (PQ IV, FY 2003) EXFC externally measures collection box to mailbox delivery performance. EXFC continuously tests a panel of 463 ZIP Code areas selected on the basis of geographic and volume density from which 90% of First-Class volume originates and 80% destinates. EXFC is not a system-wide measurement of all First-Class Mail performance. PERFORMANCE CLUSTER RESULTS LOCAL 3-DIGIT ZIP CODES AKRON 95 436, 442, 443, 445, 447, 449 ALABAMA 95 350, 351, 352, 358, 361, 366 ALASKA* 97 995, 996 ALBANY 96 120, 121, 122, 123, 128, 130, 131, 132, 135, 139 ALBUQUERQUE 96 870, 871 APPALACHIAN 96 240, 250, 251, 252, 253, 263, 264, 265 ARIZONA 96 850, 852, 853, 855, 856, 857 ARKANSAS 96 720, 721, 722, 723, 727 ATLANTA 94 300, 301, 302, 303 BALTIMORE 96 210, 211, 212, 214, 217, 219 BIG SKY 96 590, 591, 598 BOSTON 95 021, 024 CAPITAL 96 200, 206, 207, 208, 209 CARIBBEAN 90 009 CENTRAL FLORIDA 94 327, 328, 329, 334 CENTRAL ILLINOIS 96 604, 605, 616, 617, 618, 627 CENTRAL NEW JERSEY 94 077, 085, 086, 088, 089 CENTRAL PLAINS 96 515, 516, 666, 670, 671, 672, 680, 681, 685 CHICAGO 94 606, 607 CINCINNATI 95 410, 450, 451, 452, 454, 458,470 CLEVELAND 93 440, 441 COLORADO/WYOMING 96 800, 801, 802, 803, 809, 820 COLUMBUS 94 430, 431, 432, 433 CONNECTICUT 95 060, 061, 062, 064, 069 DAKOTAS 96 570, 571, 573, 581 DALLAS 95 750, 751, 752, 754, 757 DETROIT 94 481, 482, 492 ERIE 97 159, 161, 164, 165, 166 FORT WORTH 96 760, 761, 762, 764, 791, 794 GATEWAY 95 620, 622, 630, 631, 633, 652 GREATER INDIANA 96 460, 461, 462, 463, 464, 466, 468, 469, 473, 478, 479 GREATER MICHIGAN 95 486, 488, 489, 490, 493, 494, 495 GREATER SOUTH CAROLINA 95 290, 291, 292, 293, 294, 295, 296 GREENSBORO 95 270, 271, 272, 273, 274, 275, 276, 277, 278, 286 HARRISBURG 95 170, 171, 172, 178, 180, 185, 187 HAWKEYE 97 500, 501, 502, 503, 507, 511, 520, 524, 612 HONOLULU 96 967, 968 *No Overnight standard. Score shown is for two-day performance. PERFORMANCE CLUSTER RESULTS LOCAL 3-DIGIT ZIP CODES HOUSTON 95 770, 772, 773, 774 KENTUCKIANA 94 400, 401, 402, 405, 406, 471, 477 LAKELAND 95 530, 531, 532, 535, 537, 543, 544, 549 LANCASTER 94 176, 189, 193, 194, 196 LONG BEACH 96 902, 903, 904, 905, 906, 907, 908 LONG ISLAND 95 115, 117, 118, 119 LOS ANGELES 94 900 LOUISIANA 94 700, 701, 705, 708, 711 MAINE 94 040, 041, 043, 044, 045, 048 MID-AMERICA 95 640, 641, 658, 661, 662 MID-CAROLINAS 93 280, 281, 282, 283, 288, 297 MIDDLESEX-CENTRAL 95 015, 016, 017, 018, 019 MISSISSIPPI 95 386, 390, 391, 392, 395 NEVADA-SIERRA 96 890, 891, 895 NEW HAMPSHIRE 95 030, 031, 032, 033, 034, 038 NEW YORK 93 100, 104 NORTH FLORIDA 95 320, 321, 322, 323, 325, 326 NORTHERN ILLINOIS 94 600, 601, 602, 603, 611 NORTHERN NEW JERSEY 93 070, 071, 072, 073, 074, 075, 076, 078, 079 NORTHERN VIRGINIA 96 201, 220, 221, 222, 223 NORTHLAND 97 540, 546, 550, 551, 553, 554, 559, 563 OAKLAND 96 945, 946, 947, 948 OKLAHOMA 95 730, 731, 740, 741, 743 PHILADELPHIA 94 190, 191 PITTSBURGH 96 150, 151, 152, 153, 154, 156 PORTLAND 97 970, 971, 972, 973, 974, 986 RICHMOND 95 224, 225, 230, 231, 232, 233, 234, 235, 238 RIO GRANDE 95 765, 767, 780, 781, 782, 784, 786, 787, 788, 789, 797, 799 ROYAL OAK 93 480, 483, 484, 485 SACRAMENTO 96 952, 956, 957, 958 SALT LAKE CITY 95 840, 841, 844 SAN DIEGO 96 919, 920, 921, 924 SAN FRANCISCO 96 940, 941, 943, 944, 949 SAN JOSE 95 933, 937, 939, 950, 951 SANTA ANA 95 917, 918, 926, 927, 928 SEATTLE 95 980, 981, 982, 984, 985 SOUTH FLORIDA 95 330, 331, 332, 333 SOUTH GEORGIA 95 309, 310, 312, 314, 319 SOUTH JERSEY 94 080, 081, 082, 083, 084, 197, 198 SOUTHEAST NEW ENGLAND 94 020, 023, 027, 028, 029 SPOKANE 97 835, 837, 838, 990, 991, 992, 994 SPRINGFIELD 96 010, 011, 012, 013, 050, 054 SUNCOAST 95 335, 336, 337, 338, 339, 341, 342, 346 TENNESSEE 94 370, 371, 372, 374, 379, 380, 381 TRIBORO 93 110, 112, 113, 114, 116 VAN NUYS 96 911, 913, 914, 915, 916, 930, 931 WESTCHESTER 94 105, 106, 107, 108, 109, 125 WESTERN NEW YORK 95 140, 141, 142, 143, 144, 145, 146