Federal Prison Industries Inc. (UNICOR) and
Blockhouse Inc., a manufacturer and marketer
of dormitory and quarters furniture, finalized a
contract (1PI-C-4415-1) on December 7, 1999,
establishing a partnership whereby Blockhouse
will be UNICOR's agent for world-wide sales and
marketing, field representation, customer service,
delivery coordination and scheduling, invoicing,
performing installation, GSA packaged room, and
collaboration on advertising and ongoing product
development for dormitory and quarters furniture.

The UNICOR / Blockhouse partnership marks a
significant advancement for UNICOR's goal of
developing mutually beneficial relationships with
private sector companies. These relationships are
aimed at serving the best interests of the industry,
UNICOR's mandate to employ inmates, and
ultimately the needs of the federal consumer.
This agreement will provide customers of UNICOR's
dormitory and quarters products a dramatically
increased level of service, particularly in the areas
of one-on-one sales, installation, packaged room
program and service after the sale.

On January 1, 2000 UNICOR begins its non-
mandatory source pilot program for dormitory
and quarters furniture. This means the UNICOR/
Blockhouse partnership will compete for business
through traditional means such as listing the
products on GSA schedule, and sales and
marketing efforts. The partnership's focus is on
providing the best value for the federal market.