Canadian Mail Delays

Customer Update: Change Continues to Impact Postal Service

*         Canada Post is experiencing service issues in certain areas of the
country.
*         These challenges are being caused primarily by transition issues
related to a massive investment in new technology and processes throughout
Canada Post's network.
*         This investment is required as much of the equipment used in our
mail processing facilities is over 20 years old, and the processes used to
deliver the mail were first introduced in the early 1970s.
*         For this reason, we are investing $2 billion in new technology and
processes to improve our equipment, reduce costs and better position the
postal system to cope with declining mail volumes.
*         The scale of the network-wide changes being introduced represents
a tremendous challenge. Mail flows are being disrupted by the technology
change over.
*         Canada Post has undertaken more change in the past four years than
in the previous 40 years.
*         The company is now working through the complexities of changing
its infrastructure while attempting to maintain normal operations.
*         We are taking steps to resolve the current challenges by providing
employees with additional training on new equipment and hiring additional
staff where needed.
*         The measures being taken are starting to help.
*         All of us at Canada Post take pride in our service and understand
the frustration experienced by some customers in recent months.
*   We appreciate your patience as we take steps to improve service. Our
objective is to use these changes to offer customers better service at lower
costs over the long-term.

*   Your Canada Post Sales and Service team will keep you updated on our
progress going forward.