STRONG PERFORMANCE. USPS reported a net income of $1 billion for the first quarter of Fiscal Year 2003, $200 million above plan. CFO Richard Strasser told the Board of Governors yesterday that revenue was $16.3 billion - $300 million less than projected - but careful cost containment kept expenses $500 million under plan. Strasser projected that Quarter II results will be similar to Quarter I, with net income at or above plan while revenue and volume may lag behind projections due to soft economic conditions.

RECORD DELIVERY SCORES. USPS reported continued high delivery scores for First-Class Mail in major metropolitan areas. For the first quarter of FY 2003, local First-Class Mail achieved a 94% on-time delivery service performance score, Consumer Advocate Francia Smith told the Board of Governors. This is the third consecutive quarter delivery performance has hit the 94% benchmark.

NEW CHAIRMAN. The USPS Board of Governors selected a new chairman and vice chairman at its meeting yesterday. Vice Chairman S. David Fineman was elected chairman after Robert Rider announced his intention to step down this year after two years heading the Board of Governors. John Walsh, a governor since 1999, was elected as vice chairman.

NEW POSITIONS. PMG Jack Potter announced that Senior Vice President and Chief Technology Officer Charles Bravo has been named Senior VP for Intelligent Mail and Address Quality. In his new capacity, Bravo will manage intelligent mail planning, standards and implementation, along with address management and standardization for barcoding technology. Robert Otto, VP for Information Technology, has been asked to serve as Chief Technology Officer. In addition, Murry Weatherall has been named VP for Diversity Development, following service as District Manager for the Lakeland District.

COMMISSION MEETING. The first meeting of the President's Commission on the U.S. Postal Service will be held this morning in Washington, DC. PMG Jack Potter and CFO Richard Strasser will be among the officials testifying, along with Treasury Undersecretary for Domestic Finance Peter Fisher. The meeting at the Hotel Washington is open to the media and the public.