SUBJ: DISCONTINUATION OF PARTNERSHIP BETWEEN COAST GUARD AND FIRST BOOK 1. THE COAST GUARD AND FIRST BOOK BEGAN THEIR FORMAL RELATIONSHIP IN 2000. AT THAT TIME, FIRST BOOK WAS A RELATIVELY NEW ORGANIZATION RELYING ON DONATIONS OF BOOKS FROM PUBLISHERS, AND DONATED VOLUNTEER TIME AND STORAGE SPACE. 2. SINCE 2000, FIRST BOOK HAS EXPANDED DRAMATICALLY. A KEY DRIVER OF THIS GROWTH WAS THE DEVELOPMENT OF THE FIRST BOOK MARKETPLACE (FBMP). 3. FOR THE COAST GUARD, THE RELEVANT DIFFERENCE BETWEEN FIRST BOOKS CURRENT BUSINESS MODEL FOCUSING ON FBMP AND THEIR ORIGINAL ONE UNDER THE FIRST BOOK NATIONAL BOOK BANK IS THE FACT THAT MANY BOOKS ARE NOW SOLD, NOT GIVEN AWAY. 4. THE CURRENT BUSINESS MODEL AND FIRST BOOKS INTENT TO BEGIN INTERNATIONAL OPERATIONS PROHIBIT THE COAST GUARD FROM CONTINUING OUR RELATIONSHIP. 5. WHILE CONTINUED OFFICIAL COAST GUARD SUPPORT FOR FIRST BOOK IS NOT POSSIBLE, THE COAST GUARD HAS NOTHING BUT RESPECT FOR FIRST BOOK, ITS MISSION AND THE INNOVATIVE, AMBITIOUS, AND SUCCESSFUL BUSINESS PRACTICES THAT HAVE ALLOWED IT TO GROW. THE DIRECTORATE OF GOVERNMENTAL AND PUBLIC AFFAIRS IS THANKFUL TO THE MANY COAST GUARD UNITS THAT HAVE SUPPORTED OUR PARTNERSHIP WITH FIRST BOOK DURING THE LAST NINE YEARS. YOUR EFFORTS HAVE HELPED CREATE A VIBRANT ORGANIZATION COMMITTED TO CHILDREN AND LITERACY WORLDWIDE. 6. POC IS COMDT(CG-09223), NATALIE GRANGER AT (202) 372-4640, OR E- MAIL: NATALIE.S.GRANGER(AT)USCG.MIL. 7. RDML MARY E. LANDRY, DIRECTOR OF GOVERNMENTAL AND PUBLIC AFFAIRS, SENDS. 8. INTERNET RELEASE AUTHORIZED.