Quebecor World Logistics NEWS FLASH - Issue #212
USPS Releases First Rate Hike Under the Postal Accountability and Enhancement Act

February 11, 2008

The United States Postal Service announced today that its first price increase since the release of the Postal Accountability and Enhancement Act will go into effect on May 12, 2008 and will be tied to the Consumer Price Index (CPI).

Following the recent postal law, the rate increase for each of the classes will not exceed the allowable price cap of 2.9%. The USPS has discretion to raise one subclass more than the rate of inflation and to keep another subclass increase below inflation as long as the entire class of mail rate increase does not exceed the CPI, or 2.9%. For example, the Standard flats subclass can receive an increase higher than CPI, but the overall Standard mail total increase cannot exceed the CPI.

We, at Quebecor World Logistics, are currently analyzing the specifics of the rate hike and will update you on the effects as soon as possible.

Ron Sing
Quebecor World Logistics
630-343-4729