New Domestic Prices Effective
January 8, 2006

The Governors of the U.S. Postal Service voted November 14 to accept the Postal Rate Commission´s recommendation to increase most rates and fees by approximately 5.4 percent.

This price increase — the first since 2002 — is needed to fulfill a federal law passed in 2003 that requires the Postal Service to place $3.1 billion in an escrow account by October 1, 2006. Without this federal mandate, it would not have been necessary to raise prices in 2006. Among the adjustments, the one ounce single-piece rate for First- Class Mail will increase from 37 cents to 39 cents, and the postcard rate will increase by one cent, to 24 cents.

The Board of Governors set Sunday, January 8, 2006, as the effective date for the new rates and fees.

Did every domestic rate and fee increase by 5.4 percent?
In certain instances, a 5.4 percent increase is not possible. Periodicals In-County rates and Nonprofit Standard Mail Enhanced Carrier Route (ECR) rates follow a formula prescribed by federal statute, which dictates how their subsidized rates are determined. Periodicals In-County

rates decreased 2.3 percent, while Nonprofit Standard Mail ECR rates increased 12.3 percent. Other Nonprofit Standard Mail rates increased 3 percent, while Library Mail increased 12.6 percent and Media Mail increased 12.7 percent.

Following is a summary of the most frequently used domestic rates and fees. Complete domestic rate and fee information can be found on pages R1 - R16, and online at usps.com/ratecase.

Express Mail®

The average increase is 5.4 percent. Increases for individual rates range from 5.3 percent to 5.6 percent as rates are always rounded to the nearest $.05 increment. The rate for the USPS-provided fl at-rate envelope, as well as the half-pound rate (post office to addressee) will be $14.40.

First-Class Mail®

The average increase is 5.36 percent, with most rates at or
near the average.

• Single-piece (consumer) one-ounce letter rate will be $.39.

• Single-piece nonmachinable surcharge will be $.13; and the presorted nonmachinable surcharge will be $.058.

• Additional ounce rates — single-piece will be $.24; and presorted and automation rate will be $.237.

• Single-piece postcard will be $.24.

Priority Mail®

The average increase is 5.4 percent, with most rates at or near the average.

• The rate for the USPS-provided flat-rate envelope, as
well as the one pound (unzoned) rate will be $4.05.

• The rate for USPS-provided flat-rate boxes will be
$8.10.