Dear SMC Members:

If you are using a DAL for any of your mailings, it is essential that you read and respond to this email.

The attorneys for SMC are responding to an argument made in postal proceedings by Val-Pak that could result in a significant increase in the DAL surcharge or a higher base rate for saturation flats.

Here is information we need from our members ASAP. I am sending this email to you in a format where you can simply type in the answers. Please get your best estimates to us ASAP. An estimate is better then a delay. We need this information to prepare and file papers before the end of the week.

Does your company use a DAL for all or part of its circulation? _____yes _____no

What is your estimate of the annual number of DALs you mail? _________________________

What is your estimate of the percentage of your total DALs that go to PO Boxes? ___________

Why is your company using a DAL? (Check all that apply):

Our company does not have the ability to do on-piece addressing for our product ___________

It is an important source of revenue for our shared mail business _____________

Our customers like it ________________________

Other _______________________________________________________

I also want to take this opportunity to alert all SMC members using the DAL that effective March 2, 2009 the Postal Service has announced that all DALs must be automation compatible and use a Delivery Point Post Net or Intelligent Mail Barcode when they accompany saturation mailings of periodicals or Standard mail flats. The standards will not apply to DALs with simplified addresses.

This is another example of how SMC's legal and economic team are vigilantly responding to a cost study and argument that could result in higher costs for all SMC members.

We expect the Postal Service will announce news of its proposed annual rate adjustment in mid-February. Right now it looks like the average postal rate increase for mail applied on a class basis will be just under 4%. We are hoping to achieve better results for our members.

Donna E. Hanbery
Saturation Mailers Coalition
33 South Sixth Street, Suite 4040
Minneapolis, MN  55402
(612) 340-9350/direct dial
(612) 340-9446/fax
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