MAKING THE GRADE. We scored high marks on Government Executive Magazine's Federal Performance Report, earning A's in managing for results, financial management and physical assets management.

GIVING CUSTOMERS GREATER CHOICE. Our groundbreaking business alliance with FedEx provided the air transportation network we needed to meet customer requirements for more reliable service and reduced costs. The agreement has doubled the market reach of Express Mail Next-Day®, and Priority Mail Two-Day™ services.

PRIORITIZING COMMITMENTS. We restructured our organization to bring more focus to priorities and the core business. Changes in our headquarters and field organization are enabling us to better serve the American people by establishing a leaner management structure.

IMPROVING OPERATIONS. Technology upgrades that track mail and enhance accounting and timekeeping systems enabled us to provide near real-time mail flow information to large mailers and postal operations. Mailers can track their mail as it flows though our automated mailstream. The Postal Service can better match equipment and staffing to workload, improving productivity and reducing operating costs.

CHAMPIONING SMALL AND LARGE BUSINESSES. We're making Priority Mail® more affordable and offering mailers more options and greater value. Experimental Priority Mail Presort discounts are measuring the costs of mailer presortation to determined if incentives would be attractive and beneficial to mailers.

TAKING PRIDE IN OUR PERFORMANCE. External First-Class Mail® delivery scores, as recorded by PricewaterhouseCoopers, showed that 94% of First-Class Mail destined for next-day delivery received overnight service.

DOING OUR PART. We received seven White House "Closing the Circle" awards for enviromental achievement, bring our total to 37 awards since the recognition began in 1995.

OPENING EYES. As part of our mission to bind the nation together, we partnered with the Dave Thomas Foundation to focus national attention on adoption. The Adoption stamp provided a vehicle for highlighting this important cause.

TURNING HEADS. For the second year in a row, Fortune Magazine ranked the Postal Service among the nation's top 20 employers for minorities.

BUILDING OUR BRAND. Our Pro Cycling Team, led by Lance Armstrong, delivered its third consecutive win at the world's foremost cycling event, the Tour de France.

DELIVERING FOR OUR NATION. In the wake of the September 11th tragedies, we maintained normal collection, processing and delivery of mail to the people and businesses of America.

SHAPING OUR FUTURE. At the request of Congress and the Comptroller General of the United States, we are developing a comprehensive Transformation Plan to position the Postal Service for long-term success in an increasingly dynamic market. The plan explores changes possible within our existing legislative framework, moderate legislative change to increase flexibility in key areas, and options for long-term, comprehensive changes to shape and support the Postal Service of the future.