Loren Data Corp.

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COMMERCE BUSINESS DAILY ISSUE OF AUGUST 24,2000 PSA#2671

FEDERAL PRISON INDUSTRIES "GOOD FAITH" NOTICE FOLLOW-UP ON CAMOUFLAGE COVERS On July 19, 2000, the Commerce Business Daily published a "good faith" notice regarding FPI's proposal to resume manufacturing camouflage covers for sale to the Federal government. The "good faith" notice explained that FPI had previously manufactured camouflage covers, which are assigned National Stock Number (NSN) 8415-01-280-3098. However, FPI has not produced this item during the last five years. For this reason, FPI examined if this item met the criteria of a "new product" as set forth in FPI's expansion guidelines. As stated in the July 19th notice, camouflage covers are included within Federal Supply Classification (FSC) 8415 -- Special Purpose Clothing, and Standard Industrial Classification (SIC) 2399 -- Textile Products Not Elsewhere Classified. The notice explained that FPI has a long history of producing items within both FSC 8415 and SIC 2399. As a result, FPI did not believe camouflage covers met the criteria of a "new product" as set forth in FPI's expansion guidelines. However, FPI recognized that a reasonable person may construe camouflage covers to be a product separate and distinct from any other item supplied by FPI. The July 19th notice requested that interested parties submit comments regarding the FPI's production of camouflage covers. As specified by FPI's expansion guidelines, the July 19th notice stated that such comments were due within 21 days of the publication of the notice. The deadline for such comments was August 9, 2000. FPI did not receive any comments in response to the notice. Therefore, for the reasons set forth in the July 19th notice, it is FPI's determination that camouflage covers are not a "new product" as defined by FPI's expansion guidelines. FPI may manufacture these items for sale to the Federal government without obtaining prior approval from its Board of Directors. These items will be included within the specific product grouping "FSC 8415 -- Other Special Purpose Clothing." As discussed in FPI's guidelines, any interested party has the right toraise any question at any time with FPI's Board of Directors. Posted 08/22/00 (W-SN488638).

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