Delivery Solutions. Worldwide

1
Delivery Solutions. Worldwide

• Mailorder Gardening Association Presentation
  7/18/2006 Providence, RI

2
Agenda For Mailorder Gardening Association

• Company Background

• Global Presence and Network

• Product and Services

3
Mailorder Gardening Association
03_Service Strengths

• Delivering Exceptional Customer Value
• Breadth of Delivery Service Options for Flats,
  BPM, Media Mail and Parcels
• Seamless USPS Integration
• Increased Access to Information
• Online Reporting
• Electronic Invoicing
• Accountability
• Accurate Engineered Processes
• Online Tracking to the Door
• Continouous Ongoing Daily Delivery Testing
• Proof of Processing for Every Mail Piece/Package
• Trust
• Global Delivery Experts
• Profitable Growth History
• Security Facility Layout, Cameras, and Cages

4
Mailorder Gardening Association
02_The SmartMail Advantage

• Wide Array of Products
• Flats-ideal for catalogs and seeds
• Bound Printed Matter
• Media Mail
• Parcels-ideal for seeds
• _at_home-ideal for plants and accessories
• Two Service Levels
• Consistent Delivery Performance
• Delivery Network
• Delivery Testing
• - Delivery Confirmation
• - Confirm/PLANET Codes
• - Quarterly Testing
• SmartCenters Process Deliveries Quickly and
  Efficiently
• USPS Preparation Compliance Experts
• Postage and Operational Cost Reductions
• Significant Postage Savings
• Reduction on soft costs personnel, supplies,
  etc.

5
Agenda For Mailorder Gardening Association

• Company Background

• Global Presence and Network

• Product and Services

6
Focus on Americas
Global Presence and Network
Global Presence and Networks

• Americas
• Cross-border services
• US domestic services
• 25 processing centers

Toronto
Chicago
Newark
Los Angeles
Miami
Mexico City
Domestic Processing Hub
International Processing Hub Domestic
International Hub comined
7
Leveraging the final Mile
142
Addresses Delivered per Day (in Millions)
Addresses
Standard Delivery Days per Week 6
5
5
8
US Domestic Network
Strategically located processing facilities
streamline mail processing enabling injection in
destination BMCs, SCFs, and DDUs.
Expedited Delivery Model
9
Agenda For Mailorder Gardening Association

• Company Background

• Global Presence and Network

• Product and Services

10
International Product Portfolio
International Product Portfolio
Priority Service 2-8 days
Service levels
Standard Service 5-14 days
Introducing Global Parcel
11
Domestic Product Portfolio
Domestic Product Portfolio
DHL_at_home 1 70 lbs
Apparel, product samples, electronics,
prescriptions, merchandise, etc.
SmartMail Expedited 2 5 days
Service levels
SmartMail Budget 3 - 10 days
DHL_at_home Exp 1-2 days Standard 2 4 days
Deferred 2 7 days
12
Catalog Fulfillment Product Portfolio
Products and services
13
Value Added Services
Value Added Services

• Pick Up, Sorting, and Stamping
• Mail Management Reports
• Customized Invoices
• Email invoices
• Online Pick Up and Supply Ordering
• Timely Industry News Updates
• Service Disruption Alerts
• Tracking
• Online Reporting

• Postal Compliance Consulting
• Special Routing Services
• Account Management
• Delivery Testing
• Security
• Web-based, real-time cost allocation solution
• Address and Database Management
• Direct Marketing Consulting

Insert Picture
14
Postal Rate Case 2007- Implications for mailers

• Significant increases in postage proposed for ALL
  mail
• Reduced incentives for Origin Drop Standard A
  mail pieces
• Increased incentives for Destination Drop
  Standard A mail pieces
• First Class rates dependent on type of mail
  piece flats will be rated differently than
  parcels