Employees

Employee Discounts Are a Click Away

Tires for your car? A computer for your kids? Magazines? We have some deals for you! And they're easy to access online.

• Credit Card: You can apply online for the United States Postal Service® Employee Platinum Visa card. The card is for Postal ServiceTM employees and their families, has no annual fee, and comes with a 0% APR for 6 months.

• Wireless Services: The USPS® discount is your discount. USPS gets wireless discounts from AT&T, Cingular, Nextel, and Verizon. So can you.

• Goodyear: Postal Service employees get discounts at participating Goodyear retailers - lube, oil, and filter for $14.95, 15% off automotive services, and 10% off Goodyear brand tires.

• Magazines: The Postal Service and Magazine Mall offer thousands of magazine subscriptions to employees, their families, and their friends at up to 85% off the retail price.

• Computers: Log on for computer savings. The USPS Employee Connectivity Program offers deals on computers for you and your family.

• Vehicles: Employees can bid on surplus Postal Service vehicles, using eBay.

For more information on all these employee discounts, visit the Employee Deals Web site. On the Intranet, go to http://blue.usps.gov; click on Employee Deals. The direct URL on www.usps.com is www.usps.com/news/online/deals.

— Speech Writing and Publications,
Public Affairs and Communications, 6-26-03

RURAL CARRIERS

Equipment Maintenance Allowance Schedule for Rural Routes

In accordance with provisions of Article 9, Section 2.J.3 of the Rural Carrier National Agreement, effective July 12, 2003 (pay period 16-03), the equipment maintenance allowance (EMA) will decrease from 40.5 cents per mile to 40.0 cents per mile.

The EMA is 40.0 cents per mile, or a minimum of $16.00 per day, whichever is greater.

Auxiliary Rural Carriers, Rural Carrier Reliefs, Rural Carrier Associates, Rural Carrier Part-Time Flexibles, and Auxiliary Assistance

Employees providing auxiliary assistance or serving auxiliary routes under provisions of Article 9, Section 2.J.5, receive an EMA of 40.0 cents per mile or $4.60 per hour, whichever is greater. This EMA should not exceed the amount provided in the special EMA for the route stops and miles.

EMA Rate Schedule

The EMA rate schedule on pages 3-4 supersedes all previously published EMA schedules for employees receiving EMA.

— Collective Bargaining and Arbitration,Labor Relations, 6-26-03

Finance

REMINDER

Federal Taxation Percentage for Supplemental Wages

Postal ServiceTM employees are reminded that the percentage used to tax supplemental wages is different from the normal taxation percentage(s). As information, supplemental wages include, but are not limited to, prizes, awards, back-pay awards, severance pay, and reimbursements for moving expenses.

When President Bush signed into law the Jobs and Growth Tax Relief Reconciliation Act of 2003, one of the provisions of that law required a change in the percentage used to tax supplemental wages. Effective Pay Period 16-03 (July 12, 2003), the percentage used to calculate the taxes due on supplemental wages will be decreased from 27 to 25 percent. The Postal Service will use the 25 percent tax rate for supplemental wages until further notice.

— Payroll Accounting,
Finance, 6-26-03

Federal Income Tax Withholding

President Bush has signed into law the Jobs and Growth Tax Relief Reconciliation Act of 2003 (Public Law Number 108-27), which provides retroactive changes to federal tax calculations. The federal tax information provided in this article is effective through December 31, 2004. (Minor inflation adjustments to the 10 percent bracket will occur in 2004. We will publish those adjustments as soon as the Internal Revenue Service (IRS) provides them.)

Note: Although these changes are retroactively effective to January 1, 2003, employers (including the Postal ServiceTM) are not required to make corrective adjustments to tax collections during the remainder of this calendar year. Employees will obtain refunds of their taxes during the normal process of filing their 2003 income tax return.

Effective Pay Period (PP) 16-2003, payroll checks will reflect changes in federal tax withholding, and the exemption value increases for each allowance from $117.31 to $119.23. Based on provisions in the Jobs and Growth Tax Relief Reconciliation Act, the six tax percentages now have amounts of 10, 15, 25, 28, 33, and 35 percent, respectively. All information in this article is based on both a biweekly pay period and the withholding tables contained in IRS Notice 1036, Income Tax Withholding and Advanced Earned Income Credit Payment Tables (Early Release).

* Wages are determined after subtracting withholding allowances, FSA, FEHB, and TSP contributions from your gross earnings.

Federal Employees Health Benefits (FEHB), Flexible Spending Accounts (FSA), and Thrift Savings Plan (TSP) contributions made by employees are treated as pretax monies (unless a pretax waiver for FEHB benefits has been signed by an employee). When calculating your taxes, remember to subtract your allowances and all of these contribution amounts from your gross earnings.

To determine the amount of withholding, follow the steps listed below:

1. Determine normal biweekly gross wages from earnings statement.

2. Determine normal biweekly TSP contributions from earnings statement.

3. Determine normal biweekly FSA contributions from earnings statement. If applicable, add the amounts from both the FSA Dependent Child (FSADC) Sub-Account and the FSA Health Care (FSAHC) Sub-Account.

4. Determine normal biweekly FEHB pretax employee contribution from earnings statement (abbreviated as HP).

5. Multiply the number of exemptions claimed by the new biweekly exemption value of $119.23 (withholding allowance). The federal tax line on the earnings statement shows the number of exemptions claimed (e.g., S1 = Single with One Exemption, M3 = Married with Three Exemptions).

6. Subtract the amounts in Step 2 (TSP), Step 3 (FSA), Step 4 (FEHB), and Step 5 (Exemptions) from Step 1 (Gross Biweekly Wages). The remainder is the amount that is subject to withholding.

7. Determine which range this amount falls into on the Federal Income Tax Withholding Table, and follow the instructions listed in the table.

Shown below is an example of how to compute federal income taxes for a FERS employee who claims married with three exemptions, and makes pretax contributions to the FEHB, FSA, and TSP.

Example

A FERS employee receives $3,634.28 as gross biweekly wages. The employee makes the following contributions: 13 percent per PP to the TSP; $40.00 per PP to the FSADC Sub-Account and $70.00 per PP to the FSAHC Sub-Account; and $89.36 per PP for FEHB (see below). The actual cost for a Postal Service employee paying High Option Self and Family with the GEHA Benefit Plan is $89.36. The employee is married and claims three exemptions (M3 on the federal tax line of the earnings statement). Using the information provided above in the Federal Income Tax Withholding Table, federal taxes are computed as follows:

Computation continues as follows:

To complete the computation, refer to the married/biweekly segment of the Federal Income Tax Withholding Table. The amount of wages subject to withholding, $2,604.77, falls within the "Over $2,490 but not over $4,540" range. Using the information provided within that range, the final computation is as follows:

*Rounding may vary this total by a few cents.

— Payroll Accounting, Finance, 6-26-03

Fiscal Year Closing Guidance

Message From the Controller

I ask that each of you continue your efforts to control expenses. It is important that we carry this effort through to the end of the fiscal year, September 30.

We must also control discretionary activity. This does not mean curtailing business; but it does mean making prudent choices by deferring or eliminating noncritical activity, and purchasing goods or services throughout the year rather than at year-end simply because there are available budget funds.

I ask that you encourage your contractors to bill us in a timely manner for goods received and services rendered so we can recognize the expense prior to the close of the fiscal year, September 30, 2003. Additionally, I ask that you process accruals for goods received and services rendered on or before September 30, 2003, but not invoiced to ensure receipt by the San Mateo Accounting Service Center by October 3. Please note the minimum expense accrual is $10,000.

This year-end will be different from previous years. The processing window for accounting period 13 will not be extended, and, for this year only, there will be a transition period (TP), accounting period TP, during which we will record costs incurred from the end of accounting period 13 through September 30, 2003. Accordingly, the extended period for year-end closing activity will occur after the close of business for accounting period TP, September 30, 2003. Then beginning October 1, 2003, we will adopt a calendar- month reporting cycle.

The following instructions will assist you, when appropriate, in helping the Postal ServiceTM close its financial books in a timely and efficient manner.

DONNA M. PEAK
VICE PRESIDENT, FINANCE, CONTROLLER

I. Instructions for Fiscal Year Closing

All organizations are requested to limit their expenditures to essential spending. Accordingly, all vice presidents should review discretionary spending to ensure the Postal Service attains its financial target for this fiscal year (FY).

The instructions and reporting dates in this Postal Bulletin supplement procedures followed during the normal accounting period (AP) or quarterly reporting schedule.

II. Fiscal Year

The Postal Service prepares its annual reports on a government FY basis, which comprises 365 days (366 in leap years) always ending on September 30. However, for internal reporting purposes, the Postal Service has historically used a reporting cycle that comprises 13 APs of 28 days each, totaling 364 days. This has required the use of an estimation period, AP 14, to convert the Postal Service's internal reporting cycle to the government FY. Beginning FY 2004, the Postal Service is changing its internal reporting to a calendar-month reporting cycle that corresponds with our FY of October 1 through September 30. To position ourselves for this change we will add a transition period to postal FY 2003.

The transition period covers September 6, 2003, through September 30, 2003. Postal Service Financial Reports (PSFRs) will be printed for this period. The transition period budget will be maintained at the performance cluster level only. Reports will show only the actual activity recorded for that period and the corresponding plan amount.

III. Capital and Expense Commitment or Accrual Activities

A. Capital

Supply Management will not accept capital and expense requisitions and request for contract modifications after September 12, unless work is currently under way on advance requirements or the buying manager grants an exception. Capital purchase card transactions will be accepted through September 18. Capital commitments, particularly Postal Service support equipment, should also be limited to essential needs. Below is a schedule for Supply Management processing:

• For requisitions received September 12 or before, Supply Management will attempt to issue the required contract/modification in time for the San Mateo Accounting Service Center (ASC) to process against FY 2003 funds.

• Requisitions received September 13 and prior to September 30 that require issuance of a solicitation or negotiation with vendors/modification may not be issued in time for processing against FY 2003 funds depending on workload, etc.

• Requisitions received October 1 and after will be processed against FY 2004 funds.

Supply Management will process all requisitions for the issuance of contracts against FY 2003 funds according to the following priorities:

• Priority 1 - Capital commitment requisitions.

• Priority 2 - Expense commitment requisitions.

Commitment documents with award dates prior to and including September 30 must be forwarded to reach the San Mateo ASC no later than October 3. Appropriate receiving reports or certified invoices for goods and services received by September 30 must be forwarded to the San Mateo ASC for receipt no later than October 3. Please expedite processing of receiving reports and certified invoices as these documents are used to charge costs to the proper FY. Additionally, review contracts to ensure sufficient funds are available.

B. Unpaid Expenses or Accruals for Goods and Services Received on or before September 30 (expense accrual minimum for FY 2003 is $10,000).

If it is impossible to furnish a receiving report or certified invoice for goods or services rendered on or before September 30, 2003, in time to reach the San Mateo ASC by October 3, and the expense per contract sequence number or miscellaneous (noncommitment) purchase or service is $10,000 or more, the expense may be accrued.

Complete PS Form 8163, Request for Fiscal Year 2003 Expense Accrual, a copy of which is found on page 11 of this Postal Bulletin. Documentation supporting accruals must be attached (see PS Form 8163 for examples of proper vendor documentation). Documents received at the San Mateo ASC pertaining to activities occurring October 1 and later will be recorded in FY 2004.

IV. Liquidation of Accruals

When submitting an actual certified invoice to liquidate an accrual, include the statement "Accrued to FY 2003" on the face of the document. Mail these invoices directly to the ASC (do not mail to the Scanning and Imaging Center) at the following address:

MANAGER
ACCOUNTING SERVICE CENTER
2700 CAMPUS DRIVE
SAN MATEO CA 94497-9401

Liquidate accruals as soon as possible. Offices must monitor their accruals and payments to ensure that the accruals are properly liquidated. All FY 2003 accruals processed by the San Mateo ASC that are not liquidated by the close of February, FY 2004, will be reversed to finance number 10-4380 as a prior-year credit. Subsequent payments will be charged to the appropriate budget finance number as a FY 2004 expense.

V. Submission Schedules

Please use the following schedules relating to FY 2003 closing:

Schedule I - Accrual Processing Information (see item A below)

Schedule II - Submission Processing (see item B on page 9)

A. Schedule I - Accrual Processing Information

The following are examples of items that may be accrued using PS Form 8163 if goods or services have been received on or before September 30, no receiving report has been received, the dollar amount of services rendered is $10,000 or more, and you will not get an invoice to certify for payment by September 30:

Service Maintenance Contract - Copier

Review the last invoice processed to determine the amount to accrue from the service ending date through September 30.

To estimate the accrual amount, perform the following calculation:

• Calculate number of days to accrue.

Billing period last invoice = 8/19 - 9/17

Number of days to accrue = 13 (9/18 - 9/30)

• Calculate the daily rate.

Divide the last invoice amount by the number of days in the billing period to determine a daily rate.

Invoice amount = $30,000

Billing period = 30 days (8/19 - 9/17)

Daily rate = $1,000 ($30,000 / 30 days)

• Calculate the accrual amount.

Multiply the daily rate calculated by the number of days that will be accrued.

Accrual amount = $1,000 x 13 = $13,000

Utility Billing Accrual - Natural Gas

• Use the accrual amount calculation for service maintenance as shown above.

Other Goods or Services Accrual - Consultant Contract

• Calculate the accrual amount.

Check with the vendor to validate the cost of goods or services received during the unbilled period ending 9/30 and obtain the necessary supporting documentation.

Note: Do not accrue if the amount is less than $10,000.

The following items may not be accrued on PS Form 8163:

Basic Pricing Agreements (BPA)
Bulk fuel deliveries, oil purchases, and vehicle parts
Capital
Carrier drive-outs
Credit card purchases*
Direct Vendor Delivery (DVD) purchases
FEDSTRIPs*
Gasoline credit card (fleet card) purchases*
Government Printing Office (GPO) printings*
Government Travel Accounts (GTAs)*
Imprest funds
Incentive awards
Inventory
Nonpostal training
Nonmetered fuel
Telecommunications (Raleigh)*
Relocation Management Firm (RMF) services*
Tort claims
Travel
Uniform allowances
Vehicle repairs on PS Form 4541, Order-Invoice for Vehicle Repair (Commercial Work Order)

*Items that will be accrued by National Accounting or the San Mateo ASC.

B. Schedule II - Submission Processing

** Do not place orders for DVD or eBuy purchases from October 1 through October 6, 2003, except for critical needs.

Address questions concerning these instructions to the appropriate servicing finance office.

— National Accounting, Finance, 6-12-03

International Mail

ICM UPDATES

International Customized Mail

We have combined ICM updates into one Postal Bulletin article to save space and paper. Eight ICM updates appear here.

On September 13, 2001, the Postal ServiceTM entered into an International Customized Mail (ICM) Service Agreement with a Qualifying Mailer. In accordance with International Mail Manual (IMM) 297.4, the Postal Service now makes public the following information concerning the Agreement:

a. Term: May 1, 2001, through April 30, 2003.

b. Type of mail: Global Express Mail^TM (EMS) and Airmail Parcel Post. Every item must conform to the mailing requirements set forth in the IMM for Qualifying Mail.

c. Destination countries: Worldwide.

d. Service provided by the Postal Service: The Postal Service has agreed to:

1. Furnish the Mailer, or its agent(s), with the postal equipment and postal supplies required for the use of Qualifying Mail.

2. Provide the Mailer, or its agent(s), with any necessary training to prepare mail shipments in conformity with the requirements of Qualifying Mail.

3. Provide the Mailer with technical assistance necessary to prepare the necessary information linkages, electronic data files, and data exchanges.

4. To arrange with carriers to transport Qualifying Mail to international destinations where the proper authority will effect delivery.

5. Furnish the Mailer with tracking reports, if applicable to the service, and delivery performance reports on a regular basis.

6. Return Global Express Mail^TM (EMS) items refused by an addressee and undeliverable items to the Mailer via Express Mail at no charge provided the return rate is no more than four (4) percent of total volume.

7. Return Airmail Parcel Post items refused by an addressee or undeliverable to the Mailer according to the provisions of IMM 771.

8. Apply a Postal Service shipping label and Customs documentation to each package intended for delivery in Canada, Japan, the United Kingdom, and the European Union.

9. Send an electronic data file to Canada, Japan, the United Kingdom, and the European Union (via the United Kingdom) that will allow the Customs officials to review the contents of each shipment before the packages arrive.

e. Minimum volume commitment: The Mailer has agreed to meet an annualized minimum volume commitment of 1,000 packages or an annualized minimum commitment of $20,000 in international postage for Qualifying Mail.

f. Worksharing: The Mailer has agreed to:

1. Establish the necessary linkages to exchange data transmissions.

2. Exchange electronic information with the Postal Service according to the specifications and instructions the Postal Service provides.

3. Pay postage to the Postal Service, either directly or through a mailing agent(s), for all Qualifying Mail by use of a permit imprint subject to the conditions stated in DMM P040, with the exception that DMM P040.1.1 shall not apply, and IMM 152.3.

4. Provide the Postal Service via fax or e-mail with notification of new permit numbers used for Qualifying Mail one week in advance of using the new permit numbers.

5. Provide Postal Service acceptance sites with a schedule of mailings, including the intended date of tender, weight, volume, and location where mail will originate, in accordance with instructions the Postal Service provides.

6. Present mailings to the Postal Service at the designated USPS® facility.

7. Pay for any requested harmonization at a rate of $250 per hour.

g. Rates: The Mailer has agreed to pay postage for Qualifying Mail according to the rate charts in Exhibit 1.

Global Express Mail (EMS)
Discounted Rate for USPS Labeling and Customs Preadvice

Airmail Parcel Post (APP)
Discounted Rate for USPS And Customs Preadvice

On May 28, 2001, the Postal Service entered into an International Customized Mail (ICM) Service Agreement with a Qualifying Mailer. In accordance with International Mail Manual (IMM) 297.4, the Postal Service now makes public the following information concerning the Agreement:

a. Term: May 1, 2001, through April 30, 2003.

b. Type of mail: Global Express Mail^TM (EMS) and Airmail Parcel Post. Every item must conform to the mailing requirements set forth in the IMM for Qualifying Mail.

c. Destination countries: Worldwide.

d. Service provided by the Postal Service: The Postal Service has agreed to:

1. Furnish the Mailer, or its agent(s), with the postal equipment and postal supplies required for the use of Qualifying Mail.

2. Provide the Mailer, or its agent(s), with any necessary training to prepare mail shipments in conformity with the requirements of Qualifying Mail.

3. Provide the Mailer with technical assistance necessary to prepare the necessary information linkages, electronic data files, and data exchanges.

4. To arrange with carriers to transport Qualifying Mail to international destinations where the proper authority will effect delivery.

5. Furnish the Mailer with tracking reports, if applicable to the service, and delivery performance reports on a regular basis.

6. Return Global Express Mail^TM (EMS) items refused by an addressee and undeliverable items to the Mailer via Express Mail at no charge provided the return rate is no more than four (4) percent of total volume.

7. Return Airmail Parcel Post items refused by an addressee or undeliverable to the Mailer according to the provisions of IMM 771.

8. Apply a Postal Service shipping label and Customs documentation to each package.

e. Minimum volume commitment: The Mailer has agreed to meet an annualized minimum volume commitment of 50,000 packages or an annualized minimum commitment of $1,000,000 in international postage for Qualifying Mail.

f. Worksharing: The Mailer has agreed to:

1. Establish the necessary linkages to exchange data transmissions.

2. Exchange electronic information with the Postal Service according to the specifications and instructions the Postal Service provides.

3. Pay postage to the Postal Service, either directly or through a mailing agent(s), for all Qualifying Mail by use of a permit imprint subject to the conditions stated in DMM P040, with the exception that DMM P040.1.1 shall not apply, and IMM 152.3.

4. Provide the Postal Service via fax or email with notification of new permit numbers used for Qualifying Mail one week in advance of using the new permit numbers.

5. Provide Postal Service acceptance sites with a schedule of mailings, including the intended date of tender, weight, volume, and location where mail will originate, in accordance with instructions the Postal Service provides.

6. Present mailings to the Postal Service at the designated USPS facility

g. Rates: The Mailer has agreed to pay postage for Qualifying Mail according to the rate charts in Exhibit 1.

Exhibit 1 - Japan Rate Charts

Discounted Rates for USPS Labeling and Customs Pre-Advice

Exhibit 1 - Merchandise Return Service Fees

Exhibit 1 - Global Express Mail (EMS)
Discounted Rates for USPS Labeling

Exhibit 1 - Airmail Parcel Post (APP)
Discounted Rates for USPS Labeling

On May 15, 2003, the Postal Service entered into an International Customized Mail (ICM) Service Agreement with a Qualifying Mailer. In accordance with International Mail Manual (IMM) 297.4, the Postal Service now makes public the following information concerning the Agreement:

a. Term: May 29, 2003, through May 28, 2006.

b. Type of mail: Global Express Mail^TM (EMS). Every item must conform to the mailing requirements set forth in the IMM for EMS.

c. Destination countries: Worldwide.

d. Service provided by the Postal Service: The Postal Service has agreed to transport EMS to international destinations for delivery by the appropriate authorities.

e. Minimum volume commitments: The Mailer has agreed to meet an annualized minimum commitment of $12,000 in postage for EMS.

f. Worksharing: The Mailer has agreed to:

1. Comply with the terms and conditions for mailing EMS as set forth in the IMM.

2. Pay postage for EMS by means of a dedicated Express Mail Corporate Account (EMCA) in accordance with the EMCA requirements set forth in the Domestic Mail Manual (DMM).

g. Rates: The Mailer has agreed to pay postage at a rate discounted at eight (8) percent off nondiscounted published rates in effect on the date of mailing in accordance with Exhibit 1.

Exhibit 1

On May 12, 2003, the Postal Service entered into an International Customized Mail (ICM) Service Agreement with a Qualifying Mailer. In accordance with International Mail Manual (IMM) 297.4, the Postal Service now makes public the following information concerning the Agreement:

a. Term: May 26, 2003, through May 25, 2004.

b. Type of mail: Global Express Mail^TM (EMS). Every item must conform to the mailing requirements set forth in the IMM for EMS.

c. Destination countries: Worldwide.

d. Service provided by the Postal Service: The Postal Service has agreed to transport EMS to international destinations for delivery by the appropriate authorities.

e. Minimum volume commitments: The Mailer has agreed to meet an annualized minimum commitment of $12,000 in postage for EMS.

f. Worksharing: The Mailer has agreed to:

1. Comply with the terms and conditions for mailing EMS as set forth in the IMM.

2. Pay postage for EMS by means of a dedicated Express Mail Corporate Account (EMCA) in accordance with the EMCA requirements set forth in the Domestic Mail Manual (DMM).

g. Rates: The Mailer has agreed to pay postage at a rate discounted at eight (8) percent off nondiscounted published rates in effect on the date of mailing in accordance with Exhibit 1.

Exhibit 1

On May 13, 2003, the Postal Service amended an International Customized Mail Service Agreement dated May 1, 2001. The Agreement was published on page 26 of Postal Bulletin 22061 (10-18-01). The Amendment modifies the term of the Agreement. In accordance with International Mail Manual (IMM) 297.4, the Postal Service previously announced entering into an International Customized Mail Service Agreement with this qualifying mailer and hereby makes public the following information regarding this Amendment:

a. Term: May 1, 2001, through June 30, 2003.

b. Type of Mail: All other provisions of the Agreement shall remain in force.

c. Destination Countries: All other provisions of the Agreement shall remain in force.

d. Service Provided by the Postal Service: All other provisions of the Agreement shall remain in force.

e. Minimum Volume Commitments: All other provisions of the Agreement shall remain in force.

f. Worksharing: All other provisions of the Agreement shall remain in force.

g. Rates: All other provisions of the Agreement shall remain in force.

On May 1, 2003, the Postal Service amended an International Customized Mail Service Agreement dated July 7, 1999. The Agreement was published on page 37 of Postal Bulletin 22021 (4-6-00). The Amendment modifies the term of the Agreement. In accordance with International Mail Manual (IMM) 297.4, the Postal Service previously announced entering into an International Customized Mail Service Agreement with this qualifying mailer and hereby makes public the following information regarding this Amendment:

a. Term: July 17, 1999, through June 30, 2003.

b. Type of Mail: All other provisions of the Agreement shall remain in force.

c. Destination Countries: All other provisions of the Agreement shall remain in force.

d. Service Provided by the Postal Service: All other provisions of the Agreement shall remain in force.

e. Minimum Volume Commitments: All other provisions of the Agreement shall remain in force.

f. Worksharing: All other provisions of the Agreement shall remain in force.

g. Rates: All other provisions of the Agreement shall remain in force.

On May 7, 2003, the Postal Service entered into an International Customized Mail (ICM) Service Agreement with a Qualifying Mailer. In accordance with International Mail Manual (IMM) 297.4, the Postal Service now makes public the following information concerning the Agreement:

a. Term: May 21, 2003, through May 20, 2004.

b. Type of mail: Global Express Mail^TM (EMS). Every item must conform to the mailing requirements set forth in the IMM for EMS.

c. Destination countries: Worldwide.

d. Service provided by the Postal Service: The Postal Service has agreed to transport EMS to international destinations for delivery by the appropriate authorities.

e. Minimum volume commitments: The Mailer has agreed to meet an annualized minimum commitment of 1,000 pieces of EMS.

f. Worksharing: The Mailer has agreed to:

1. Comply with the terms and conditions for mailing EMS as set forth in the IMM.

2. Pay postage for EMS by means of a dedicated Express Mail Corporate Account (EMCA) in accordance with the EMCA requirements set forth in the Domestic Mail Manual (DMM).

g. Rates: The Mailer has agreed to pay postage at a rate discounted at ten (10) percent off nondiscounted published rates in effect on the date of mailing in accordance with Exhibit 1.

Exhibit 1