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COMMERCE BUSINESS DAILY ISSUE OF DECEMBER 16,1998 PSA#2243

GOOD FAITH FOLLOW-UP: FPI PRODUCTION OF BORE BRUSHES FEDERAL PRISON INDUSTRIES, INC. (FPI) On June 25, 1998, the Commerce Business Daily published a "good faith" announcement regarding FPI's desire to manufacture various sizes of bore brushes. The "good faith" announcement explained that while FPI did not consider different sizes of bore brushes "new products" as defined in its industry involvement guidelines, FPI recognized that a reasonable person may believe different sizes of bore brushes are products separate and distinct from any other item supplied by FPI. The June 25th announcement requested that interested parties submit comments regarding the production of different sizes of bore brushes by FPI. As specified by FPI's 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 16, 1998. FPI received only one comment in response to this matter, from Kleen-Bore, Inc. of Easthampton, MA. Copies of both FPI's "good faith" announcement and the submission from Kleen-Bore were provided to FPI's Board of Directors for review. After evaluating the information, FPI's Board officially concurred with FPI's position that various sizes of bore brushes are not "new products" as defined by FPI's expansion guidelines. The Board specifically approved combining bore brushes from multiple Federal Supply Classification (FSC) codes as a single specific product known as "bore brushes." For the purposes of FPI's guidelines, FPI will track its sale of "bore brushes" as well as all its sales by FSC code. As discussed in FPI's 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. Posted 12/14/98 (W-SN280124).

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