Loren Data Corp.

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COMMERCE BUSINESS DAILY ISSUE OF AUGUST 12,1997 PSA#1907

"GOOD FAITH" ANNOUNCEMENT FOLLOW-UP: METAL HAND TRUCKS FEDERAL PRISON INDUSTRIES, INC. (FPI) On July 7, the Commerce Business Daily published a "good faith" announcement regarding FPI's desire to manufacture metal hand trucks for sale to the Federal government. The announcement explained that while FPI did not consider metal hand trucks to be a "new product" as defined in its expansion guidelines, the corporation recognized that a reasonable person may construe metal hand trucks to be a product separate and distinct from any other item supplied by FPI. The July 7 "good faith" announcement requested that interested parties submit comments regarding the production of metal hand trucks by FPI. As mandated in FPI's expansion guidelines, the announcement noted that such comments were due within 21 days of the publication of the announcement. The deadline for such comments was July 28. As of August 4, FPI had not received any comments in response to this matter. For the reasons set forth in FPI's July 7 announcement, and in the absence of any comments in opposition to that announcement, it is FPI's decision that metal hand trucks do not meet the definition of "new product" set forth by FPI's expansion guidelines. For the purposes of the corporation's expansion guidelines, metal hand trucks will be included in the existing FPI product "Non-self propelled carts and trucks, FSC 3920." As discussed in FPI's expansion guidelines, any interested party has a right to raise any question at any time with FPI's Board of Directors. All comments should be addressed to: Manager, Planning, Research and Activation, Federal Prison Industries, Inc., 320 First Street, NW, Washington, D.C. 20534.

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