Commercial Market Services Agreement

Federal Prison Industries, Inc. (FPI) would like to announce an agreement with COPART, Inc. of Dallas, TX to provide services on an as-agreed upon and as-needed basis. Rating services are defined as providing damage severity ratings, according to standards provided by COPART, based on images of vehicles. Under the terms of the agreement, FPI will provide the workspace and perform the services. The services provided will not require the handling of sensitive information. These services are for work that would otherwise be provided by non-domestic sources. As such, this is repatriated work within the operating criteria as defined in public notices regarding FPI's authority to perform commercial market services. These public notices were posted in the on-line edition of the Commerce Business Daily (CBD) on December 22, 1998 and February 22, 1999. These notices also appeared in the December 24, 1998 and February 24, 1999 printed edition of the CBD.

Interested parties have 30 days to comment or raise questions with FPI's Board of Directors. All written correspondence should be addressed to: Chief, Marketing, Research and Corporate Support, Federal Prison Industries, Inc., 320 First Street, NW, Washington, D.C. 20534.