products and services to better enhance customer value for the benefit of both the mailing industry and the Postal Service.

     MTAC enjoyed another year of significant accomplishment during 2003, and issues related to the following initiatives were brought to closure: PostalOne! services, Publication Watch, Maximizing the Value of PLANET Code service, Move Update, Mail.dat and PostalOne! Network Operations, Presort Optimization, Service Assessment for Destination Delivery Unit Drop Shipment, Delivery Standards and Business Mail Measurement, and Standard Implementation Guidelines for Periodical Co-Palletization.

     Workgroups that are currently active include the following: Postal One! Postage Payment & Statements — Approach and Design, First-Class Business Mail Measurement System, Parcel Delivery Performance Measurement Effectiveness, Flat Mail Preparation Optimization, Enhancing CONFIRM service, In-Home Delivery Instructions for Standard Mail service, Design Guidelines for Flat-Size Mail, Flats Container Development, and Mail Irregularity Feedback Process.

     Other issues are in the pipeline for possible new work groups with a view toward energizing, to an even greater degree, an already successful program. The plan is to achieve even faster transformation to continue high levels of service, cost containment, proper resource allocation, and innovation to increase revenues for the benefit of both the Postal Service and the mailing industry.

     The Mailing Industry Task Force (MITF) was established in the spring of 2001 to assess the current state of mail as a communications channel, to determine how mail could be enhanced to ensure its viability, and to protect the $871 billion in commerce that is dependent on an effective mail channel. The Task Force is co-chaired by the chief executive officer of Pitney Bowes and the deputy postmaster general. In addition to the co-chairs, the MITF is led by the chief executives of 11 industry-leading companies. The

purpose of the MITF is to respond to today's customer requirements, make the mail channel more competitive, and unify the mailing industry so that it is able to leverage its economic impact. Their mission includes determining the best methods to meet evolving customer needs, enhancing the capabilities of the mail "product" to complement and compete effectively with other communications methods, and identifying new learnings and opportunities relevant to all aspects of the mailing industry.

     The MITF developed eight areas of focus, or recommendations, with each recommendation supported by one or more strategic initiatives. These areas of focus were to improve address quality, support intelligent mail, build a competitive postal pricing strategy, enhance postal payment systems, design consumer gateway services, create a CEO-level industry council, standardize mail preparation, and optimize the postal network.

     The MITF presented its strategic recommendations to the mailing industry at the fall 2001 National Postal Forum (NPF) in Denver, Co. After releasing its initial recommendations, the MITF steering committee has remained active and has made significant progress in facilitating implementation of its recommendations. The Task Force has involved 72 companies and over 200 industry and Postal Service executives. The Task Force has continued to update the mailing industry by reporting on its progress at National Postal Forums. At the fall 2003 NPF in Kansas City, MO, the Task Force released its fourth progress report. By this time, 45 initiatives had either been fully implemented or were in the process of becoming operational. The following actions were supportive of the MITF's recommendations:

• Establishment by the Postal Service of a senior vice president for Intelligent Mail service and Address Quality.
• Making Intelligent Mail service and address quality a priority for both the Postal Service and the industry.
• Launch and refinement of CONFIRM service, the Postal Service's first Intelligent Mail product.