GOOD FAITH ANNOUNCEMENT FOLLOW-UP: FPI PRODUCTION OF LICENSE PLATES FEDERAL PRISON INDUSTRIES, INC. (FPI) On June 30, 1998, the Commerce Business Daily published a "good faith" announcement regarding FPI's proposal to manufacture license plates for the Federal government. As discussed in the announcement, District of Columbia sentenced inmates will be transferred to correctional facilities operated or contracted by the Federal Bureau of Prisons no later than December 31, 2001. Therefore, it will be necessary for FPI to create an appropriate number of industrial jobs for these inmates. To facilitate the creation of such jobs, District of Columbia industrial equipment, along with certain industrial operations associated with that equipment, may be transferred to FPI. Specifically, license plate production equipment, together with license plate production operations, may be shifted from the District of Columbia Department of Corrections (DCDC) to FPI. The June 30, 1988 "good faith" announcement explained that FPI is required to prepare a detailed written analysis of theprobable impact on industry and free labor before initiating production of a new product. However, FPI's possible undertaking of license plate production would only involve shifting the work and equipment from the DCDC to FPI. Therefore, FPI does not believe it would be required to initiate the public involvement guidelines process. The June 30th "good faith" announcement requested that interested parties submit comments regarding the production of license plates by FPI. The deadline for such comments was July 21, 1998. FPI did not receive any comments in response to this matter. FPI's Board has officially concurred with FPI's position that the possible license plate production as a new product by FPI does not require FPI to initiate the public involvement guidelines process. For the purposes of FPI's industry involvement guidelines, FPI will use the Federal Supply Classification (FSC) code for license plates as the primary means to track production. 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-SN280102).

Loren Data Corp. http://www.ld.com (SYN# 0388 19981216\SP-0018.MSC)