Paramount Cards CEO Tells Congressional Panel Postal Service Needs "Value Oriented" Reform

Hamilton Davison, President and Chief Executive Officer of Paramount Cards Inc. today told a Congressional Committee that the nation's postal service will be in jeopardy unless Congress enacts strong regulatory protection, initiates stringent cost control and creates a postal service business model to recognize the importance of first class mail.

Washington, DC (PRWEB) February 13 2004---- Hamilton Davison, President and Chief Executive Officer of Paramount Cards Inc. today told a Congressional Committee that the nation's postal service will be in jeopardy unless Congress enacts strong regulatory protection, initiates stringent cost control and creates a postal service business model to recognize the importance of first class mail.

    "Value-oriented thinking needs to be imbued into our postal system. In business, a value-added approach is the determinant for success, and that should be the case with the Postal Service," he said.

    Davison made his remarks before the Special Panel on Postal Reform and Oversight, chaired by Representative John McHugh (R-NY) and convened by Government Reform Committee Chairman Tom Davis (R-VA) of the U.S. House of Representatives. Joining Davison in testifying before the Congressional Committee were Chief Executive Officers of Fed-Ex, Pitney Bowes, Time, RR Donnelly, Capital One, Norm Thompson Outfitters and Advo.

    Paramount Cards, headquartered in Pawtucket, Rhode Island, is the industry leader in value greeting cards and the parent of Cardsmart Retail Corporation whose Cardsmart® stores are value oriented with 50% off Every Card Every Day" and outstanding values in gifts and related items.

    Davison, a current director and past president of the Greeting Card Association, added, "Our postal system is in danger and needs a systemic overhaul. As the pace of a high tech life accelerates, along with uncertainties of homeland security, military action and everyday stresses felt by families stretching budgets, Americans are increasingly interested in nostalgic, personal means of communicating and commemorating the milestones of those they care about. Because over half of all cards purchased enter the mail, the success of the US Postal Service is of paramount concern to us."

    Davison testified before the Special Panel of the House Committee on Government Reform, which is holding hearings following the recently issued report of the Presidential Commission on Postal Reform. The Presidential Commission Report, at which Davison also appeared, calls for major changes in the way the post office conducts business.

    He said, "Consumers expect value when they shop and the U.S. Postal Service needs to recognize and respond to this market reality. Common wisdom used to be that single piece first class mail users would pay whatever was charged, and that bulk mailers should get the best postage rates to encourage mail unit expansion to help finance network growth. Today, this is not the case, since stamp prices affect demand for greeting cards and personal mail use. Average people cannot continue to pay the costs of an expanded mail delivery network through stamp price hikes."

Davison advocated three important "value-oriented" actions:

    .    Establish strong and efficient regulatory protection protecting average American postal customers.

    .    Give the Postal Service authority to control workforce and facility costs.

    .    Create a Postal Service business model recognizing the interdependency of first class mail with that of high volume, low cost bulk mail.

    Davison said he generally agrees with the recent Postal Commissions recommendations and the Presidents Five Principles for Reform, adding, "we also need cost improvement in the system, not just caps on further rate increases. The Postal Service needs the mandate to build 'value' in the mail by advancing its competitive position, or it will loose the widespread use and tremendous brand equity it enjoys today."

    Davisons comments are at the heart of responding to consumer demand. The Paramount Cards group focuses on getting great cards in Americans hands at a great price," according to Davison. "People were fed up with high priced greeting cards. We responded successfully to that market reality, with strong product offers at under a dollar and a growing franchise concept that now has retail stores nationwide. The USPS and Congress needs to hear from Americans about their dissatisfaction about stamp price hikes with a call to support the average household user who is at the root of the strength of a successful postal system."

    Paramount Cards Holding Corporation, Americas oldest and third largest greeting card company, has several operating subsidiaries in addition to CardSmart. Its Image Craft subsidiary is the second largest publisher in Canada and supplies over 90% of the dollar cards sold in Canada. The Premier Greetings division it is the USA leader in strategic value marketing. The companys Lawson Falle unit is the second largest Christian card publisher, while Paramount International is a leading supplier of private label and custom produced cards and related products.

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