Loren Data Corp.

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COMMERCE BUSINESS DAILY ISSUE OF JUNE 25,1998 PSA#2124

GOOD FAITH ANNOUNCEMENT FEDERAL PRISON INDUSTRIES, INC. (FPI) Under the terms of FPI's expansion guidelines, published March 12, 1997 in the Federal Register and March 25, 1997 in the Commerce Business Daily, FPI submits the following "good faith announcement" for public notice and comment. FPI proposes to manufacture various sizes of bore brushes for sale to the Federal government. FPI has sold bore brushes to the government from FY 1992 through FY 1995. During FY 1992, FPI made bore brushes that fell within Federal Supply Class (FSC) code 1025 -- Weapons, 150mm-200mm. In FY 1993, FPI made bore brushes in FSC 1015 -- Weapons, 75mm-125mm. During FY 1994 and FY 1995, FPI sold bore brushes in FSC 1010 -- Weapons, 30mm-75mm. All of the brushes fell within Standard Industrial Classification (SIC) code 3991 -- Brooms and Brushes. The brushes are classified in different FSC codes depending on their size. That is the only major difference between the various types of bore brushes. FPI wishes to manufacture bore brushes from a variety of FSC codes. FPI's expansion guidelines use an item's FSC code as the primary determinant of whether it is a separate specific product. It is FPI's belief that these various types of bore brushes are not substantially different in function. Their classification in different FSC codes is due solely to the different caliber of weapons for which they are designed. For this reason, FPI believes that different sizes of bore brushes, regardless of their FSC code, do not meet the definition of "new product" as set forth by FPI's expansion guidelines. FPI believes it should be allowed to supply the Federal government with bore brushes which fall within the following FSC codes: FSC 1005 -- Weapons through 30mm; FSC 1010 -- Weapons, 30mm-75mm; FSC 1015 -- Weapons, 75mm-125mm; FSC 1020 -- Weapons, 125mm-150mm; FSC 1025 -- Weapons, 150mm-200mm; FSC 1030 -- Weapons, 200mm-300mm; FSC 1035 -- Weapons, Over 300mm. However, FPI recognizes that a reasonable person may construe the different sizes of bore brushes to be different specific products, separate and distinct from one another. Under the terms of FPI's expansion guidelines, interested parties may submit comments regarding the proposed production by FPI. In submitting comments to FPI, the following guidelines will apply: 1) Comments will be due within 21 days of the date of this notice; 2) Relevant comments will focus on and address why the items should be considered new products, separate and distinct from a similar item currently produced by FPI; 3) While the primary purpose of the comments will be to determine if the items should be defined as new products, comments related to market share and/or the impact resulting from such a production decision may also be considered relevant. All comments received in response to this announcement will be considered by FPI. All commenters will be advised whether FPI decides to initiate the public involvement guidelines process. 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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