Defense Department Extends Freight Payment Contract with U.S. Bank for Fourteenth Consecutive Year

  Defense Department Extends Freight Payment Contract with U.S. Bank for
  Fourteenth Consecutive Year

Business Wire

WASHINGTON -- January 31, 2013

U.S. Bank and the U.S. Department of Defense (DoD) have agreed to extend their
long-term contract, enabling the DoD to continue to pay its freight invoices
electronically through U.S. Bank Freight Payment.

Using U.S. Bank Freight Payment to process and pay invoices saves the DoD and
its partner agencies hundreds of thousands of dollars annually in freight
invoice processing costs. U.S. Bank Freight Payment also gives the government
a transparent supply chain with robust data capture and reporting, allowing
the DoD to more effectively manage its transportation program.

“We are proud of our partnership with the DoD and what we have achieved in our
joint efforts to attain greater efficiency and measurable savings through
payment automation,” said Kurt Adams, president of U.S. Bank Corporate Payment
Systems. “We continue to make significant, ongoing investments in expanding
the program for the benefit of the department, its constituents and the
American taxpayer.”

The U.S. Bank- DoD collaboration dates back to 1999, when the first of a
continuing series of one-year contracts was signed. The collaboration has
grown from 69 processed invoices in the first year to more than 11 million by
the end of 2012.

New capabilities are continually being added. In 2012, the DOD worked with the
bank and industry partners to automate the process by which providers of the
“non-temporary storage” (NTS) of military household goods are paid. The
elimination of paper processing represents additional millions in savings for
the military and its NTS contractors.

“Cash flow for our impacted members has been exponentially improved, in some
cases by months, through the DoD’s adoption of U.S. Bank Freight Payment for
NTS,” said Chuck White, director of Military & Government Relations at the
International Association of Movers, one of the DoD’s service providers. “This
is significant, given that many of these contractors are small businesses
dependent on timely payment for their operations.”

Other federal agencies that partner with U.S. Bank under terms of this
contract include the State Department, Homeland Security, Health and Human
Services, and the Department of Energy.

About U.S. Bank
U.S. Bancorp (NYSE: USB), with $354 billion in assets as of December 31, 2012,
is the parent company of U.S. Bank, the 5th largest commercial bank in the
United States. The Company operates 3,084 banking offices in 25 states and
5,065 ATMs and provides a comprehensive line of banking, brokerage, insurance,
investment, mortgage, trust and payment services products to consumers,
businesses and institutions. Visit U.S. Bancorp on the web at www.usbank.com.

Contact:

U.S. Bank Public Relations
Nicole Garrison-Sprenger, 612-303-0731
nicole.sprenger@usbank.com