58% of U.S. Companies still not taking advantage of the savings available with mail Classification Reform.

NEW YORK--(BUSINESS WIRE)--Sept. 27, 1996--On July 1, 1996, the United States Postal Service (USPS) launched Classification Reform, the most sweeping changes ever implemented, which restructured First-Class and Standard (formerly Third-Class) mail rates to reward mailers with postage discounts for preparing mail for automated processing. This represented a great opportunity for companies to reduce costs significantly by automating their mail preparation according to the new USPS requirements.

But a Pitney Bowes study, conducted four weeks after the Classification Reform went into effect, revealed that 24% of the respondents were still unaware of the change and an additional 34% were not prepared for it. Taken together, 58% of the companies interviewed were missing out on the savings available with Classification Reform.

The lack of awareness and inability of companies to take advantage of Classification Reform because of a lack of mailing technology has lead to some unfavorable consequences. The July 1996 study found that since Class Reform went into effect, 14% of companies have had mail returned by the USPS and 20% have seen their postal expenses increase, and 19.5% have experienced an increase in mail preparation time.

"Many U.S. companies are missing the boat!," stated Kevin Weiss, Vice President Sales Planning and Tactical Marketing for Pitney Bowes Mailing Systems. "They need to realize that automating their mail centers now to comply with the new standards can dramatically reduce postage expenses. This means companies could save thousands of dollars annually, and their mail will get to its correct destination faster than ever. And, because of the significant postage discounts, there will be a quick payback on their investment in automation."

"Pitney Bowes offers list management and postal processing application software, called SmartMailer(TM) 2.0, along with ADDRESSRIGHT(TM) envelope printers, that allow businesses to take advantage of Classification Reform's savings and produce mail that gets delivered and opened," Weiss added.

The Pitney Bowes study revealed that 32% of mail center decision-makers aware of the reform surveyed were unfamiliar with the details of the reform, and only 12% said they were very familiar with the changes. Despite this lack of understanding, 57% of the aware respondents said mail Classification Reform will be influential in pushing their company to automate the mail center.

According to the study, one-third (32.8%) of the respondents with some knowledge of the reform are unsure if the reform is positive or negative for their company. However, nearly 77% of those who have the technology to take advantage of Class Reform and are familiar with the details view the changes as positive for their company.

The study revealed that the majority (62%) of U.S. companies, aware of the reform, know that letter mail must be 100% barcoded to get automation discounts under the reform, but less than half (43.3%) know that ZIP+4 discounted rates have been discontinued. Only 49.7% know that savings can be as much as 8% for First Class mail and 10% for standard mail over the pre-reform rates.

Pitney Bowes, as well as the USPS, has been conducting Classification Reform seminars throughout the United States to help inform and educate business mailers. Respondents that have attended these seminars were significantly more likely to report being prepared for classification reform.

Additional information about Pitney Bowes products and services is available through its local district offices or its home page on the Internet: http://www.pitneybowes.com.

Pitney Bowes is a premier provider of products, services and technologies that enable customers worldwide to efficiently manage the exchange and distribution of information and packages.

CONTACT: LobsenzStevens, Inc.

Kiva Kolstein

212/684-6300, ext. 326