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Quebecor World Logistics Expands U.S. Short-Run Co-mail Platform

Press release from the issuing company

MONTREAL--Aug. 2, 2004-- Quebecor World Logistics (QWL) is investing in the latest co-mail technology to reduce costs for short- and medium-run magazine publishers. With this investment, QWL will offer its enhanced co-mail process, the Express Collation Mailing System, which will reduce gross postage by up to 30 percent and improve overall postal distribution service. This initial co-mail enhancement is the first phase of QWL's three-year strategy targeted at creating a multiple-pool platform that will ultimately offer three co-mail machines with at least 30 pockets each. QWL plans to invest in a new Chicago facility in early 2005 to house these enhanced co-mail capabilities in addition to its distribution operations. "Rising paper and transportation costs - combined with the threat of postal increases - have created an ominous cloud over which we have little control," explains Karen Dauck, Director of Purchasing and Fulfillment for the Cricket Magazine Group of Carus Publishing Company. "But there's light at the end of the tunnel, after all! We are excited about this opportunity for our smaller-run publications to participate in QWL's co-mailing environment and benefit from maximum postal discounts." Co-mail is a process that merges multiple mail files into a single larger list in order to maximize presort discounts and optimize packaging to get mail deeper into the postal system. QWL's Express Collation Mailing System is unique to the industry in that it offers simultaneous, dynamic multi-origin co-mailing and nationwide distribution. Unlike other networks, publishers need not adjust their scheduling just to enter a QWL co-mail pool. "We view co-mailing as a great opportunity for short-run publishers and as being absolutely essential if we are to protect our titles from the pending rate increase," said Christy Martin, Distribution Director for Primedia Business Information. "The idea of a dynamic pooling tool as proposed by QWL is certainly very attractive to us and it will make it much easier for us to maximize the amount of mail eligible for co-mailing." Postal rates are expected to increase by 7 to 13 percent by 2006. Short-run publishers will be hit the hardest in the next rate increase because they don't always have the volume to achieve worksharing discounts like long-run publishers; but QWL's Express Collation Mailing System will help to minimize the overall impact to these publishers. Since postage accounts for approximately 30 percent of publishers' total production costs, mailers are urging the USPS to increase worksharing opportunities such as drop shipping and co-mailing, to reduce the impact of rising rates. "These upgrades to our co-mail platform have been well planned, and will result in a seamless process to serve our many valued customers," said QWL's President, Brad Nathan. "Our Express Collation Mailing System will help the USPS streamline operations and increase worksharing initiatives; help publishers save postage dollars; and help QWL maintain superior service in distribution overall."