GXG FIELD INFORMATION KIT

The Postal Service and FedEx Join Forces to Deliver Global Express Guaranteed

This Global Express Guaranteed® (GXGTM) Field Information Kit contains the following items:

• Overview.

• Graphic of an International Airway Bill and Instructions.

• Fact Sheet.

• Frequently Asked Questions.

• Stand-Up Talk for All Employees.

• Talking Points for Retail Associates.

• GXG Acceptance Matrix (Effective July 1, 2004).

• Postal Service Locations That Sell/Service GXG.

Overview

The Postal ServiceTM has selected FedEx as its new alliance partner for delivery of Global Express Guaranteed® (GXGTM) items, our date-certain international shipping product. The new contract with FedEx takes effect on July 1, 2004, replacing a previous agreement with DHL Worldwide Express.

The alliance offers more direct transportation links for GXG and adds service to several countries, including Japan and Brazil. More countries will be added in the future. For specific countries and territories served, see the International Mail Manual (IMM) section 210 or the individual country listing for each country (we will publish revisions to the IMM sections pertaining to GXG service in an upcoming issue of the Postal Bulletin), or see the hardcopy of Publication 141, Global Express Guaranteed Service Guide. (Copies of Publication 141 were mailed to participating locations starting on June 4, 2004. Participating locations can order extra copies by calling 800-610-8734 or by faxing an order to 800-270-6233.)

The new GXG labels, which feature both the Postal Service and FedEx logos, are easier to complete and affix. The Postal Service will continue to provide guaranteed high-quality service, and there is no increase in prices as a result of the new alliance.

At the close of business on June 30, 2004, Post OfficeTM facilities must destroy all DHL GXG shipping labels and envelopes, and also remove all copies of Publication 4268, Global Shipping: A World of Savings. Starting on July 1, 2004, Post Office facilities cannot accept GXG packages with DHL mailing labels. Also starting on July 1, 2004, participating retail units should display the new co-branded GXG shipping supplies (see the graphics on this page) along with other USPS® complimentary packaging supplies and encourage customers to use the new GXG co-branded envelopes - not only are they free to the customer, but they cost less for the Postal Service to process.

We will publish revisions to the International Mail Manual (IMM) sections pertaining to GXG service in an upcoming issue of the Postal Bulletin.

Graphic of an International Air Waybill and Instructions

Fact Sheet

Description

• Global Express Guaranteed® (GXGTM) is the Postal Service'sTM premium date-certain international delivery service to more than 190 countries and territories around the world.

Features

• GXG is a date-certain service that takes 1-2 days to most major international markets and 3 days to most other international destinations.

• GXG is available at 7,330 Postal Service facilities - those locations with the highest demand and growth potential. We will add more acceptance units in the future as customer interest warrants.

• GXG features a money-back guarantee, tracking and tracing, and insurance of up to $100 for loss, damage, rifling, or document reconstruction at no additional charge. Customers may purchase additional merchandise insurance to cover loss, damage, or rifling up to $2,499.

• GXG is competitively priced - GXG prices are often lower than the published prices of most other service providers.

• Customers who purchase GXG postage through the Postal Service's Click-N-Ship® Web site at www.usps.com/clicknship automatically receive a 5 percent discount. Discounts of up to 30 percent, based on volume and shipping frequency, are also available online through the Click-N-Ship Web site.

• Shipping supplies are free. Customers may obtain supplies at participating Post OfficeTM facilities, by calling 800-610-8734, by faxing an order to 800-270-6233, or through the Postal Service's GXG Web site at www.usps.com/gxg.

Network

• The new GXG network serves more than 190 countries and territories, with more to be added soon.

• The alliance with FedEx adds service to the following countries and territories:

- Afghanistan
- Barbuda
- Bonaire
- Brazil
- Cook Islands
- Curacao
- East Timor
- Iraq
- Japan
- Monaco
- Saba
- St. Barthelemy

• GXG service is no longer available to the following countries and territories:

- Algeria
- Ascension
- Burma (Myanmar)
- Cuba
- Falkland Islands
- Grenada
- Guinea-Bissau
- Helena
- Iran
- Kiribati
- Korea, Democratic People's Republic of
- Libya
- Nauru
- Sao Tome and Principe
- Sierra Leone
- Soloman Islands
- Somalia
- St. Pierre and Miquelon
- Sudan
- Tajikistan
- Tonga
- Tristan da Cunha
- Tuvalu
- Western Samoa

• For a list of all of the countries and territories served, see the International Mail Manual (IMM) section 210 or the individual country listing for each country (we will publish revisions to the IMM sections pertaining to GXG service in an upcoming issue of the Postal Bulletin), or see the hardcopy of Publication 141, Global Express Guaranteed Service Guide (copies of Publication 141 were mailed to participating locations starting on June 4, 2004).

Piece Requirements

• An envelope or package used for GXG service must be large enough to hold the Air Waybill and postage on the face of the item. The Air Waybill with the plastic holder is approximately 7 inches in height by 12 inches in length. See the graphic of the Air Waybill on page 2 in this Postal Bulletin (22130).

• Total length and girth must not exceed 108 inches. Individual dimensions must not exceed 46 inches in height, 46 inches in length, or 35 inches in width.

• Total weight must not exceed 70 pounds.

Allowable Contents

• Documents and merchandise are allowed, subject to restrictions defined by each destination country in Publication 141.

• For specific restrictions that apply for documents and non-documents for each destination country, see the section titled "Countries and Cities Served" in Publication 141.

Business Potential

• More and more global shippers are demanding date-certain, courier-level services to international destinations. GXG meets this need, providing guaranteed high-quality service at competitive prices.

Frequently Asked Questions

What is GXG?

Global Express Guaranteed® (GXGTM) is the premium international expedited shipping solution from the U.S. Postal Service®. GXG offers reliable, date-certain shipping to more than 190 countries and territories worldwide. GXG is available at thousands of participating retail locations throughout the United States. For a list of all of the countries and territories served, see the hardcopy of Publication 141, Global Express Guaranteed Service Guide (copies of Publication 141 were mailed to participating locations starting on June 4, 2004); the International Mail Manual (IMM) section 210 or the individual country listing for each country (we will publish revisions to the IMM sections pertaining to GXG service in an upcoming issue of the Postal Bulletin); or the section starting on page 5 in this issue of the Postal Bulletin (22130). Or visit the Click-N-Ship® Web site at www.usps.com/clicknship; under "International Shipping Labels," click on Go; then under "Global Express Guaranteed®," click on More; and then click on Participating Post Offices and follow the prompts.

What is happening to GXG?

On July 1, 2004, a new strategic alliance between the Postal ServiceTM and FedEx takes effect, replacing the contract with DHL Worldwide Express to handle GXG.

Why?

As the expiration date for the DHL agreement approached, the Postal Service evaluated the international shipping marketplace and a number of international integrators with an eye toward accelerating revenue growth and improving service quality. The review concluded that a new strategic alliance with FedEx offered the best combination of price, service, brand recognition, and cost/network efficiencies.

Why is delivery service provided by a private company rather than through foreign posts?

More and more businesses need guaranteed date- certain, courier-level service. Foreign post offices could not deliver a guaranteed date-certain service in 2-3 days. Companies like FedEx and DHL have the capability. To meet the needs of our customers, the Postal Service decided to partner with an industry leader to offer our GXG service.

Does this mean the Postal Service is phasing out this international service?

Absolutely not. GXG is a profitable product that has shown steady growth over the last 3 years and continues to have significant untapped upside potential. More and more global shippers are demanding date-certain, courier-level services to international destinations. GXG meets this need and is competitively priced - GXG prices are often lower than the published rates of other service providers.

Was there a problem with DHL's performance?

No. USPS® Chief Marketing Officer Anita Bizzotto said, "The relationship with DHL Worldwide Express has been a good one, and GXG has been profitable." As the end of the DHL contract approached, the Postal Service considered other international shipping companies. "Our review found that FedEx offered the best combination of price, service, brand recognition, and cost/network efficiencies," said Bizzotto.

Can customers purchase GXG at FedEx retail locations?

No.

How will the new alliance change things for customers?

The new GXG labels and packaging carry the logos of both the Postal Service and FedEx. Thanks to input from our retail associates, we have made the new labels smaller and easier to complete and affix. The alliance with FedEx offers more direct transportation links for GXG and makes some adjustments to the network of destinations served. We will add more destinations in the future.

We are adding the following countries and territories to the GXG service network:

• Afghanistan

• Barbuda

• Bonaire

• Brazil

• Cook Islands

• Curacao

• East Timor

• Iraq

• Japan

• Monaco

• Saba

• St. Barthelemy

GXG service is no longer available to the following countries and territories:

• Algeria

• Ascension

• Burma (Myanmar)

• Cuba

• Falkland Islands

• Grenada

• Guinea-Bissau

• Helena

• Iran

• Kiribati

• Korea, Democratic People's Republic of

• Libya

• Nauru

• Sao Tome and Principe

• Sierra Leone

• Soloman Islands

• Somalia

• St. Pierre and Miquelon

• Sudan

• Tajikistan

• Tonga

• Tristan da Cunha

• Tuvalu

• Western Samoa

For specific countries and territories served, see the International Mail Manual (IMM) section 210 or the individual country listing for each country (we will publish revisions to the IMM sections pertaining to GXG service in an upcoming issue of the Postal Bulletin), or see the hardcopy of Publication 141, Global Express Guaranteed Service Guide (copies of Publication 141 were mailed to participating locations starting on June 4, 2004).

It's important to note that two things are not changing. GXG still provides the highest quality international service, and GXG rates are not changing as a result of this new alliance - the rates remain lower than the published prices of most other service providers.

How will a customer make a claim under the new alliance?

To file a claim, customers should call our toll-free number - 800-222-1811.

How will the new alliance change things for employees?

FedEx will collect outgoing GXG directly from our originating airport mail centers/facilities (AMCs/AMFs), and the GXG items will remain in the FedEx network all the way to delivery in the foreign country. This eliminates the handoff to DHL at the U.S. gateway. The number of Postal Service facilities offering GXG will drop to the 7,330 highest-demand locations, allowing the Postal Service to focus our resources where customer demand is greatest. As demand grows, so will the number of participating Postal Service facilities.

Will any Postal Service jobs be lost because of the changes?

No.

Is GXG shipping information available through POS?

No, not yet. While the countries served and rate information are available on POS, retail associates will still need to look up guaranteed service standards and country information to accept GXG shipments. We are doing everything we can to eliminate the need for a hardcopy of Publication 141 in POS offices and to make all of the necessary information available electronically through the system.

Can we still use the old DHL GXG labels and shipping containers?

No. At the close of business on June 30, 2004, destroy all DHL GXG shipping labels and envelopes, and also remove all copies of Publication 4268, Global Shipping: A World of Savings. Starting on July 1, 2004, we cannot accept GXG packages with DHL mailing labels. Also starting on July 1, 2004, make sure to display the new co- branded GXG shipping supplies along with other complimentary Postal Service packaging supplies and encourage customers to use the new GXG envelopes - they are free to customers, they make a positive impression on recipients, and they cost less for us to process.

What features come with GXG?

GXG includes a money-back guarantee, tracking and tracing services, and insurance coverage of up to $100 for loss, damage, rifling, or document reconstruction free of charge. Customers can purchase additional merchandise insurance to cover loss, damage, or rifling up to $2,499. GXG date-certain service is 1-2 days to most major international markets and 3 days to most other international destinations. It is competitively priced - GXG prices are often lower than the published prices of most other service providers. Discounts of up to 30 percent, based on volume and shipping frequency, are available online through the Click-N-Ship® Web site at www.usps.com/clicknship. Shipping supplies are free - they are available to customers at participating Post Office facilities, by calling 800-610-8734, by faxing an order to 800-270-6233, or through the Postal Service's GXG Web site at www.usps.com/gxg.

Can customers use their own packaging for GXG?

Yes. However, we encourage mailers to use the new GXG co-branded packaging - it's free for customers, makes a positive impression upon delivery, and costs less for us to handle. Customers can request free shipping supplies at participating Post Office facilities, by calling 800-610-8734, by faxing their order to 800-270-6233, or by going online at www.usps.com/gxg.

How does GXG compare to Global Express Mail?

Global Express MailTM is designed to be delivered in 3-5 days to international destinations and does not offer a date-certain guarantee or tracking and tracing. GXG guarantees date-certain delivery in 1-2 days to most major international markets and 3 days to most other international destinations.

Can GXG be purchased through online postage payment services?

Yes. GXG is available online through our Click-N-Ship Web site at www.usps.com/clicknship.

Is Carrier Pickup available for GXG?

Yes. Customers who purchase GXG service through the Postal Service's Click-N-Ship Web site at www.usps.com/clicknship can request Carrier Pickup service (next-day pickup by their letter carrier at no additional charge), provided they also have requested a pickup for Priority Mail® and/or Express Mail® service.

Stand-Up Talk for All Appropriate Employees

[Please read this stand-up talk to all appropriate employees. Also, make copies of this talk and post them on official bulletin boards. To determine if your facility is on the network, refer to the list of locations starting on page 5 in this issue of the Postal Bulletin (22130).]

USPS selects FedEx to deliver Global Express Guaranteed

The Postal ServiceTM has selected FedEx to be its new delivery agent for Global Express Guaranteed® (GXGTM). The new strategic alliance with FedEx takes effect July 1, 2004, replacing a similar agreement with DHL Worldwide Express.

Here is what Chief Marketing Officer Anita Bizzotto says: "GXG is our premium international shipping product, but its potential up to now has not been fully tapped. This new strategic alliance brings two shipping powerhouses together to deliver world-class service reliability, reduce costs, and bring the resources of both organizations to bear to grow volume and revenue."

What will be different starting July 1?

[Read the next four bullets at all offices.]

• The FedEx partnership adjusts the service network to more than 190 countries and territories, establishes new service to Japan and Brazil, and features more direct transportation links for GXG.

• FedEx will collect outgoing GXG directly from our originating airport mail centers/facilities (AMCs/AMFs).

• The number of Postal Service facilities offering GXG will drop to the 7,330 highest-demand locations, allowing us to focus our resources where customer interest is greatest. As demand grows, the number of acceptance locations will grow.

• One thing that isn't changing is our competitive price - GXG prices are often lower than the published rates of other service providers.

[Read the next four bullets only at GXG acceptance network offices.]

• GXG will get a new co-branded logo. Here's what the new GXG Air Waybills look like. [Show or pass around the illustration from page 2 in this issue of the Postal Bulletin (22130).] Thanks to input from retail associates, we have made the new labels simpler and easier to fill out, and they slip easily into the plastic holder provided.

• During the first few months of the new co-branded service, retail associates will have to look up some information to complete the labels. However, we are working hard to eliminate the need for the hardcopy of Publication 141 (the GXG service guide) and to make all of the necessary information available electronically. We will get it accomplished as soon as possible.

• Encourage customers to use the new GXG co- branded shipping envelopes. They are free to customers, they make a positive impression on recipients, and they cost less for us to handle.

• Retail associates and mail processors will be provided detailed training information.

[Read the following two paragraphs at all offices.]

At the close of business on June 30, 2004, let's make sure we destroy all of the old DHL GXG shipping labels and envelopes and also remove all copies of Publication 4268, Global Shipping: A World of Savings.

And remember: Starting on July 1, 2004, we cannot accept GXG packages with DHL mailing labels.

Talking Points for Retail Associates

Strategic Alliance With FedEx to Deliver Global Express Guaranteed

Global Express Guaranteed® (GXGTM) service ...

• Is the premium international expedited shipping solution from the U.S. Postal Service®.

• Offers reliable, date-certain shipping to more than 190 countries and territories worldwide.

• Is competitively priced - GXG prices are often lower than the published prices of most other service providers.

• Is available at thousands of participating retail locations and online through the Click-N-Ship® Web site at www.usps.com/clicknship.

• Includes a money-back guarantee, tracking and tracing, and insurance coverage of up to $100 for loss, damage, rifling, or document reconstruction at no additional charge.

• Provides an automatic 5-percent discount for customers who purchase their GXG postage online through the Postal Service'sTM Click-N-Ship Web site at www.usps.com/clicknship. Customers can also get discounts of up to 30 percent based on volume and shipping frequency.

• Comes with free shipping supplies - customers can request supplies at participating Post OfficeTM facilities, by calling 800-610-8734, by faxing their order to 800-270-6233, or through the Postal Service's GXG Web site at www.usps.com/gxg.

Our new alliance with FedEx means ...

• The best combination of price, service, brand recognition, and cost/network efficiencies.

• Guaranteed service for items that must be delivered quickly to foreign destinations.

• More direct flights and better connections to participating countries, including new service to Japan and Brazil. For a list of all of the countries and territories served, see the hardcopy of Publication 141, Global Express Guaranteed Service Guide (copies of Publication 141 were mailed to participating locations starting on June 4, 2004); the International Mail Manual (IMM) section 210 or the individual country listing for each country (we will publish revisions to the IMM sections pertaining to GXG service in an upcoming issue of the Postal Bulletin); or the section starting on page 5 in this issue of the Postal Bulletin (22130). Or visit the Click-N- Ship® Web site at www.usps.com/clicknship; under "International Shipping Labels," click on Go; then under "Global Express Guaranteed®," click on More; and then click on Participating Post Offices and follow the prompts.

• Easy mailing with Carrier Pickup (where available and when applicable).

• Competitive prices (which are often lower than the published rates of most other service providers) and shipping supplies at no additional charge.

• Value for customers. More and more global shippers are demanding date-certain, courier-level services, and GXG meets this need, offering guaranteed high quality at great rates.

For more information about GXG or participating locations ...

• See this issue of the Postal Bulletin (22130) or the Postal Service's GXG Web site at www.usps.com/gxg.

GXG Acceptance Matrix (Effective July 1, 2004)

USPS Locations that Sell/Service GXG - Effective July 1, 2004