Business Segments

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Commencing in 2001, FPI’s businesses are organized, managed and internally reported as eight operating segments based on products and services. These segments are Clothing and Textiles; Electronics; Fleet Management and Vehicular; Graphics; Industrial Products; Office Furniture; Recycling; and Services and Product Distribution. These segments have responsibility for virtually all of FPI’s product lines. FPI is not dependent on any single product as a primary revenue source, however, it is dependent on the federal government market for the sale of its products. FPI previously reported its business segments in five categories. These categories are presented in the following tables for comparative purposes with amounts previously reported:

Net Sales Fiscal year ended September 30 (DOLLARS IN THOUSANDS)	2001	2000
Business Segment
Metals and Systems	$100,714	$109,139
Furniture	129,314	118,995
Electronics and Plastics	148,063	133,930
Graphics and Services	48,018	51,757
Clothing and Textiles	157,391	132,526
Net sales	$583,500	$546,347

FPI’s net sales for the fiscal year ended September 30, 2001 for each of its current business segments is presented for comparative purposes:

Net Sales Fiscal year ended September 30, 2001 (DOLLARS IN THOUSANDS)	2001
Business Segment
Clothing and Textiles	$157,391
Electronics	116,732
Fleet Management and Vehicular	31,334
Graphics	29,044
Industrial Products	59,946
Office Furniture	174,918
Recycling	5,499
Services and Product Distribution	8,636
Net sales	$583,500

Regulatory Compliance
FPI’s ability to add or to expand production of a specified product is regulated by the Federal Prison Industries Reform Act ("the Act"). The Act provides specific guidelines to FPI regarding its methodology for evaluating and reporting new or expanded products, including requiring FPI to provide direct notice to trade associations and interested parties of such actions. Finally, publication of annual decisions of the FPI Board of Directors and semi-annual sales disclosures are mandated under the Act.