The Exchange (also known as the Army and Air Force Exchange Service) is a Department of Defense sub-agency that has provided quality, tax-free retail services and merchandise to Active Duty, Guard and Reserve members, military retirees and their families for 122 years and counting. With competitively low prices, shopping at the Exchange offers an average overall savings of 25 percent compared to local retailers. Two-thirds of annual earnings go right back to military members and their families through Morale, Welfare and Recreation programs, which improve the quality of life for our customers. These programs help give a little piece of ñhomeî to our troops, which can include bowling alleys, recreation centers, movie theaters and more. Shoppers can enjoy Exchange benefits in many ways, with the greatest value being the Exchange pledge ñWe go where you go,î serving troops during military operations and humanitarian missions, domestic and abroad.