FEDERAL PRISON INDUSTRIES, INC. (FPI) INDUSTRY INVOLVEMENT GUIDELINES VIOLATION PRODUCTION OF BATTERY BOXES FEDERAL PRISON INDUSTRIES, INC. (FPI) This notice serves to announce that the Board of Directors for FPI has formally ratified FPI's production of battery boxes. On September 25, 1998, FPI submitted a notice to the Commerce Business Daily regarding the finding by Urbach, Kahn & Werlin (UKW) that FPI had initiated production of a new product, battery boxes, without obtaining approval to do so from the Board of Directors. The notice appeared in the September 29, 1998, printed version of the CBD. The notice explained that FPI initiated production of battery boxes in 1991. Production was initiated in response to an urgent request from the Department of Defense for Operation Desert Shield and the Persian Gulf War. FPI responded, but without first seeking approval from the Board of Directors to do so. While there is an explicit provision for national exigencies that cover such production in the current FPI rules, there was no such provision in effect at that time. As stated in the notice, FPI concurs with UKW's recommendation that FPI's Board of Directors ratify FPI's production of battery boxes and bring this issue to closure. The notice explained that FPI believes this is appropriate based on: * the particular circumstances surrounding the production of battery boxes; * the time period when this occurred; * the fact that battery boxes were initiated for military exigency during wartime need; and, * the minimal impact its production imposed on the industry. The notice requested that interested parties submit any comments regarding this matter to FPI within 45 days of the notice's publication. FPI received no comments on the matter. For the reasons discussed in the earlier notice and in light of FPI receiving no comments regarding this matter, FPI's Board of Directors ratified FPI's production of battery boxes during its meeting on January 28, 1999, in Tallahassee, Florida. As discussed in FPI's expansion 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 06/03/99 (W-SN338706).

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