Canada Post introduces a new kind of postage stamp

NEWS RELEASE

CANADA POST

********************* Canada Post introduces new stamp with lasting appeal!

Pennywise Canadians to benefit from new PERMANENT® stamp OTTAWA, ONTARIO - Sept. 19, 2006 - Canada Post today announced the introduction of a new non-denominated stamp that will retain its value forever.

The PERMANENT® stamp will be accepted at the basic domestic Lettermail rate and replaces next year's 52 cents domestic rate definitive stamps.

The PERMANENT® stamp will eliminate the need to purchase one-cents stamps after a rate increase, doing away with the need for Canadians to worry about "using up" postage stamps before a rate increase takes effect.

"The PERMANENT® stamp will make doing business with Canada Post that much easier," said Moya Greene, president and CEO of Canada Post. "Canadians can easily be pennywise with this customer-responsive initiative from Canada Post."

Another sample of the new stamps

Research indicates that 70 per cent of consumers really like the idea of a stamp that retains its value.

The PERMANENT® stamp will allow customers to purchase stamps in large quantities or coils, and use them anytime knowing they are valued at the going basic domestic Lettermail rate.

The PERMANENT® stamp will go on sale at the current domestic rate of 51 cents on November 16 at postal offices throughout Canada.

These stamps will be accepted at the new 52 cents rate effective January 15, 2007 when the basic Lettermail rate increases by one cent.

Yet another sample

"Improving Canada Post's responsiveness to customer needs and desires is a critical aspect of building the modern post office," concluded Ms. Greene. "This initiative demonstrates our commitment to enhancing customer satisfaction."

In addition to the PERMANENT® stamp, Canadians will also be able to use up their existing stock of 51 cents stamps in 2007.

51 cents stamps will be accepted next year at the 52 cents rate (while supplies last), even after the January 15, 2007 rate increase.

Just the facts about the one-cents stamp

- Canada is not the first country to issue a stamp that retains its value (eliminating the need for many one-cents stamps). Britain, Finland, Israel, Belgium, France, Norway, Monaco and Sweden are a few countries that also sell stamps that are always worth the going rate

- In 2005, Canada Post printed 60 million one-cents stamps. Though they will still be used as make-up postage for parcels and other lettermail, significantly reduced numbers of one-cents stamps will be printed in 2007.

- The one-cents stamp pre-dates Confederation by a number of years. The first one-cents stamp in Canada (or the land that would become Canada) was issued in 1859.

- Talk about continuity! The one-cents stamp has been in circulation since 1859.

- The first one-cents stamps paid for what was referred to as "a drop letter rate". This meant the penny provided sufficient postage to have the letter delivered within the town in which it was mailed or a similar local area.

- In the early days of postal service, the one-cents stamp was used to pay for the delivery of circulars - in today's terminology, those circulars would be Admail.

- The one-cents stamp has been a canvas to commemorate many significant figures and a wealth of "Canadiana" - Sir. John A. MacDonald, members of the monarchy and the Northern Lights have been featured on one-cents stamps.

- Had the cost of mailing a letter increased at the rate of Canadian inflation, the cost of sending a letter today would be approximately 62 cents - that's a lot of one-cents stamps.

- Since 2000, more than 430-million one-cents stamps have been printed in Canada. Placed end to end, these stamps would cover a distance of almost 11,000 kilometres. To get a sense of how long that is, remember the Trans-Canada Highway - the longest national highway in the world - stretches from St. John's, Newfoundland to Victoria, B.C and is only 7,604 kilometres long!

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