Item 10. Directors and executive officers

Stated on pages 8-9.

Item 11. Executive compensation

The Postal Service releases information concerning executive compensation to the extent required by the Freedom of Information Act (FOIA), 5 United States Code (U.S.C.) 552. Postal Service regulations implementing the FOIA are located at 39 C.F.R. 265. Information regarding how to submit a FOIA request can be found on our website usps.com.

Item 12. Security ownership of certain beneficial owners and management related stockholder matters

Not applicable to this report.

Item 13. Certain relationships and related transactions

As discussed in item 9A, every Postal Service officer, manager, and employee is required to comply with the Standards of Ethical Conduct for Employees of the Executive Branch and by the Supplemental Standards of Ethical Conduct for Employees of the United States Postal Service.

Item 14. Principal accountant fees and services

In 2002, the Board of Governors selected Ernst & Young LLP as its independent auditor to perform external auditing services. The competitively awarded five-year contract, with an option of renewal of up to 36 months, has an estimated value of $11.7 million. This contract covers the financial statement audits for fiscal years 2003-2007. As with previous contracts for external audit services, Ernst & Young LLP will not perform consulting work for us for the duration of its contract.