February 23, 2004 -- In an ongoing effort to mitigate rising postal rates on behalf of our clients, Quad/Graphics has received authorization to submit co-palletized mail for discounts under the U.S. Postal Service’s newly introduced co-palletization program for business mailers. The program awards worksharing discounts to Quad/Graphics’ clients whose mail has been presorted, bundled and consolidated onto pallets and then drop shipped to common postal entry points. “Quad/Graphics has a long-standing reputation for championing mailers and has been earning co-palletization discounts since 1988, when we first introduced our innovative co-mailing program,” said Joe Schick, Quad/Graphics’ Director of Postal Affairs. Quad/Graphics’ program - which is also known as Multi-Mail - combines multiple magazine titles into a single mailstream presorted for postal efficiencies, and, therefore, postal discounts. It was designed for clients who, alone, do not have the volume to qualify for higher presort discounts found in the carrier-route and 5-digit sort levels. With authorization, qualified palletized mail can now claim additional per-piece discounts of $0.007 to $0.010 when distributed to Area Distribution Centers (ADCs) and Sectional Center Facilities (SCFs), respectively. We were authorized after demonstrating our software has the ability to accurately document a mailing’s level of qualified mailpieces and passing an onsite review of our processes. “Quad/Graphics already has been aggressively co-palletizing mail for 15 years through our sophisticated Multi-Mail program,” said Tom Quadracci, Quad/Graphics President & CEO. “And while palletizing all mail is not cost justified at this time because savings may not be large enough to offset costs, Quad/Graphics will be at the forefront when greater discounts become available and/or the Postal Service moves to true cost-based rates.”