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August 20, 2007

PROPOSED RATEMAKING REGULATIONS

Postal Regulatory Commission Announces Comment Period

The Postal Regulatory Commission (PRC) has published proposed regulations to implement a modern ratemaking and classification system for market dominant and competitive mail products. Comments to the proposed regulations are due by Sept. 14, 2007, and reply comments are due by Sept. 28, 2007. The proposed regulations are available at the PRC website at www.prc.gov and will be published in the Federal Register.

The proposed rulemaking consists of three parts: regulations related to competitive products; regulations related to rate adjustments for market dominant products, including the formula for calculation of the rate cap under which annual adjustments may be made; and establishment of a Mail Classification Schedule, which categorizes products as either market dominant or competitive.

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