GOOD FAITH ANNOUNCEMENT FOLLOW-UP: FPI PRODUCTION OF WINDOW GRILLES FEDERAL PRISON INDUSTRIES, INC. (FPI) On June 24, 1998, the Commerce Business Daily published a "good faith" announcement regarding FPI's proposal to manufacture grilles for windows in Bureau of Prisons (BOP) correctional facilities. As discussed in the announcement, FPI's Board of Directors granted approval for FPI to initiate production of steel doors and frames for sale to the BOP. Many of the doors purchased by the BOP include grilles. In the effort to vertically integrate its production, FPI makes such grilles and includes them with the completed doors. As the announcement noted, the BOP has asked FPI to provide similar grilles for some of the windows within BOP correctional facilities. Such grilles would be manufactured in the same manner as those already made by FPI, and would function in essentially the same manner; the only difference being they will be located in a window rather than a door. The June 24th "good faith" announcement explained FPI does not believe window grilles are a separate specific product from the grilles FPI already produces. For this reason, FPI does not believe window grilles are a "new product" as defined by FPI's industry involvement guidelines. The announcement requested that interested parties submit comments regarding the production of window grilles by FPI. As specified in 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 15, 1998. FPI did not receive any comments in response to this matter. For the reasons set forth in the June 24th "good faith" announcement, and in the absence of any comments in opposition to that announcement, it is FPI's determination that window grilles do not meet the definition of "new product" set forth by FPI's expansion guidelines. For the purposes of FPI's guidelines, window grilles will be included in the existing FPI product "Doors & Frames" and sales will be tracked by their Federal Supply Classification (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-SN280096).

Loren Data Corp. http://www.ld.com (SYN# 0387 19981216\SP-0017.MSC)