DHL Global Mail Offers Insight on Planning for Impact of Proposed New USPS Rate Case

Shape will be the New Pricing Driver

Weston, FL -- October 11, 2006 -- The proposed new rate increases, known as Rate Case R-2006-1, are the most complex in the history of the United States Postal Service (USPS) and could result in substantial rate increases for companies shipping from the U.S. DHL Global Mail recommends companies and organizations review the rate case now to assess how it could affect them. Proper planning can help ensure that rate increases are kept to a minimum.

"The focus will be on greater efficiency in handling and network distribution, with the new pricing driver on shape instead of weight," said DHL Global Mail David Marinkovich, senior vice president, sales, marketing and customer service during a MultiChannel Merchant webinar called "How to Cope with the USPS Rate Case." The seminar, intended to help business mailers understand how to mitigate price increases and work with the changes to keep their businesses moving forward, described what the rate increases mean and outlined steps to take in order to prepare for the upcoming changes.

Together with Gene Del Polito, president of the Association for Postal Commerce, and Sherry Chiger, editorial director at Multichannel Merchant, Marinkovich discussed what is driving the change, how shippers of high volume, direct mail, and residential packages need to prepare beyond budgeting for cost increases, and why shape is now an important factor. As the leading one-stop solution for high volume mailers, DHL Global Mail recommends some strategies for minimizing the impact of the upcoming changes to the rates, including three ways to re-shape mailings to reduce costs. Emphasizing the significant pending changes, Marinkovich urges users to "use the resources available, plan and prepare for success."

Rate Case R-2006-1 is the most comprehensive from a mail classification perspective. It is designed to cover the costs that are directly attributable to each individual class of mail. DHL Global Mail stresses that the USPS will look favorably to entities eager to help make the transition of the new rates easier.

"This is possibly the last chance for the USPS to allocate costs based on processing characteristics. Every business needs to know the direct costs attributable to its products in order to cover them with sufficient gross margin. In the long run, mailers and the USPS will win if costs are allocated properly. USPS would like us all to help with the heavy lifting," Marinkovich concluded.

About DHL Global Mail
DHL Global Mail is the leading one-stop solution for high volume mailers, providing domestic and international mail and mail parcel solutions. Through its global distribution network of over 50 processing centers, the company provides secure, reliable distribution of direct mail, mail parcels, catalogs and publications, both nationwide and worldwide. Value-added services include fulfillment services, online tracking and reporting, address correction, mail activity reports and chargeback systems. DHL Global Mail is part of MAIL International, a division of Deutsche Post World Net. For more information, visit our web site: www.dhlglobalmail.com.

Press contact:
DHL Global Mail
David Marinkovich
(954) 903-6358
dmarinkovich@dhlglobalmail.com

Press Contact:
Hill & Knowlton, Inc.
Kip Eideberg
(202) 664-9011
kip.eideberg@hillandknowlton.com