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R.R. Donnelley is First Printer Approved to Submit through PostalOne!

Press release from the issuing company

Chicago, August 28, 2002 -- After completing the first phase of the U.S. Postal Service's (USPS) PostalOne! pilot program last year, allowing for electronic submission of presort documentation, R.R. Donnelley (NYSE: DNY) became the first commercial printer to be approved for the second phase of PostalOne! certification -- electronic submission of postal verification statements. PostalOne! is a system that allows for electronic submission of postage statements and corresponding presort documentation. It eliminates the need for a mailer to submit a hard copy of postage statement (called a PS Form 3602-R). Once a USPS employee verifies the sortation, an electronic postage statement is generated and postage is automatically deducted from the mailer's account. To become an approved user of PostalOne!, mailers must demonstrate the ability to accurately represent the postage statement and appropriate mailing information with the electronic files submitted to PostalOne! "We congratulate R.R. Donnelley on becoming an approved PostalOne! user, and recognize their efforts in helping us mature PostalOne! during the pilot process. The success of the PostalOne! pilot program represents a quantum leap forward in making the entire acceptance process more customer-focused and easier for customers to use," said Larry Goodman, manager of Business Customer Support Systems, USPS. Without PostalOne! certification, mailers must submit hard copy postage statements. The mailer first has to generate presort documentation, which is a large data report that itemizes how each mail piece was sorted, and identifies its location by pallet number, bag number and piece number. For a mailing of 10 to 12 million pieces, this report can be more than 50,000 pages long. A Detached Mail Unit (DMU) technician then refers to this printed report to verify the presort documents for accuracy. Once the DMU technician approves the presort documents, the mailer has to generate and submit a PS Form 3602-R and postage is then deducted from their account, releasing the mailing into the postal stream. "We were extremely pleased to be the first company to complete both phases of PostalOne! certification," said John Campanelli, president of R.R. Donnelley Logistics. "We're always glad to see the USPS adopting automated solutions to make otherwise laborious, paper-intensive tasks easier and more efficient. That's why we've been a longtime supporter of the PostalOne! program, both through our involvement on the advisory council and as a pilot participant. Becoming PostalOne! certified presents an easier and more reliable solution, and allows us to continue providing the best possible service to our customers. Best of all, the PostalOne! program helps the USPS contain costs associated with the lengthy paper submission process, which helps minimize the impact of future rate cases. It's a winning solution for everyone -- the USPS, R.R. Donnelley and our customers."