99 -- FPI''s Sales Ceilings for FY 2003

The Board of Directors for Federal Prison Industries, Inc. (FPI) recently authorized FY 2003 production levels for seven products: Systems Furniture, Office Seating, Office Case Goods, Work Clothing, Protective Clothing, Sweatshirts/Sweatpants and T-Shirts. The FY 2003 sales ceiling for each of the seven products is based on their FY 2002 production ceilings previously set by FPI's Board of Directors. Specifically, the Board took the FY 2002 sales ceilings, and adjusted each for inflation. The inflation adjustment for FY 2003 is 3%. This adjustment is consistent with FPI's guidelines and with previous Board actions. The FY 2002 and FY 2003 sales ceilings for each product line are: Systems Furniture: FY 2002 - $137.9 million; FY 2003 - $142.1 million; Office Seating: FY 2002 - $113.3 million; FY 2003 - $116.7 million; Office Case Goods: FY 2002 - $72.1 million; FY 2003 - $74.3 million; Work Clothing: FY 2002 - $44.6 million; FY 2003 - $45.9 million; Protective Clothing: FY 2002 - $60.0 million; FY 2003 - $61.8 million; Sweatshirts/Sweatpants: FY 2002 - $15.1 million; FY 2003 - $15.6 million; and T-Shirts: FY 2002 - $14.7 million; FY 2003 - $15.1 million. FPI believes these FY 2003 sales ceilings will allow the corporation to meet its inmate employment mandate by adjusting its sales to keep pace with rising costs, while not increasing its impact on private industry. As discussed in FPI's industry involvement guidelines, any interested party has a right to raise a question at any time with FPI's Board of Directors. All comments should be addressed to: Chief Administrative Officer, Research, Activation and Corporate Support Branch, Federal Prison Industries, Inc., 320 First Street, NW, Washington, D.C. 20534.