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2007 Financial highlights

blank Years Ended September 30 Percent Change From Preceeding Year
2007 2006 2005 2007 2006 2005
(Dollars in millions audited)

Operating revenues


$ 74,778


$ 72,650


$ 69,907


2.9%


3.9%


1.3%
Operating expenses $ 80,105 $ 71,681 $ 68,281 11.8% 5.0% 3.7%
(Loss) Income from Operations $ (5,327) $     969 $   1,626 blank blank blank
Operating margin (7.1%) 1.3% 2.3% blank blank blank
Net (loss) income $ (5,142) $     900 $  1,445 blank blank blank
Purchase of capital property
and equipment
$   2,715 $  2,630 $  2,317 3.2% 13.5% 37.5%
Debt $   4,200 $  2,100 -      
Interest expense* $        10 $        5 $        4      
Capital contributions of U.S. government $   3,034 $  3,034 $  3,034 blank blank blank
Retained (deficit) earnings since reorganization $ (1,900) $  3,242 $  2,342 blank blank blank
Total Net Capital $   1,134 $  6,276 $  5,376 blank blank blank
(unaudited)

Number of career employees
684,762 696,138 704,716 (1.6%) (1.2%) (0.4%)
Mail volume (pieces in millions) 212,234 213,138 211,743 (0.4%) 0.7% 2.7%
New delivery points served 1,818,326 1,847,831 2,006,577 blank blank blank

* Excluding interest expense on deferred retirement obligations in 2006 and 2005.

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