GOOD FAITH ANNOUNCEMENT FEDERAL PRISON INDUSTRIES, INC. (FPI) Under the terms of FPI's expansion guidelines, published March 12, 1997 in the Federal Register, FPI submits the following "good faith announcement" for public notice and comment. FPI proposes to manufacture license plates for sale to the Federal government. Under the District of Columbia Revitalization Act (Public Law 105-33), District of Columbia sentenced inmates will be transferred no later than December 31, 2001, into correctional facilities operated or contracted for by the Bureau of Prisons (BOP). Therefore, it will be necessary for the BOP and Federal Prison Industries, Inc. (FPI) to create an appropriate number of industrial jobs for those inmates housed in BOP facilities under the Act. To facilitate the creation of industrial jobs, District of Columbia industrial equipment, along with certain industrial operations associated with that equipment, will also be transferred to the BOP and FPI. Specifically, license plate production equipment, together with license plate production operations, will be shifted from the District of Columbia Department of Corrections (DCDC) to the BOP and FPI. FPI anticipates that its production of license plates will begin shortly after the transfer of equipment, but no sooner than the beginning of 1999. FPI's "guidelines process" law provides that "[FPI] shall prepare a detailed written analysis of the probable impact on industry and free labor of the plans for new production or expanded production." 18 U.S.C. 4122(b) (4) (A). However, because the undertaking of license plate work involves only the shifting of the work and equipment from DCDC, production of license plates by FPI in not anticipated to have an impact on industry or free labor. Therefore, FPI does not believe it is required to initiate the public involvement guidelines process. FPI recognizes that a reasonable person may believe its production of license plates would have an impact on private industry and free labor. Under the terms of FPI's expansion guidelines, interested parties may submit comments regarding the proposed production by FPI. Comments will be due within 21 days of the date of this notice. 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. Posted 06/26/98

Loren Data Corp. http://www.ld.com (SYN# 0490 19980630\SP-0006.MSC)