PHELPS DISCIPLINED OVER MARIJUANA PIPE INCIDENT

The Olympic swimming sensation Michael Phelps, who was photographed
inhaling from a marijuana pipe, has lost a major sponsorship deal and
has been suspended from competition for three months.

Kellogg, the food company, said Thursday that it would not renew its
contract with Phelps when their deal expires at the end of February.
It would not disclose the value of its contract.

Later Thursday, USA Swimming suspended Phelps for three months.

"Michael's most recent behavior is not consistent with the image of
Kellogg," Susanne Norwitz, a spokeswoman for the company, said in a statement.

USA Swimming publicly reprimanded Phelps, who won eight medals at the
Beijing Games, temporarily withdrawing its financial support to him
and barring him from competition through early May. Phelps receives a
monthly stipend of $1,750 from the organization. The national and
world championships will be held in the summer.

"We decided to send a strong message to Michael because he
disappointed so many people, particularly the hundreds of thousands
of USA Swimming member kids who look up to him as a role model and
hero," the organization said in a statement.

Phelps's agent, Drew Johnson, also released a statement, saying that
Phelps accepted and understood the decisions. "He feels bad he let
anyone down," the statement said. "He's also encouraged by the
thousands of comments he's received from his fans and the support
from his many sponsors. He intends to work hard to regain everyone's trust."

Darryl Seibel, a spokesman for the United States Olympic Committee,
said Thursday that U.S.O.C. officials were willing to work with
Phelps to ensure that he does not repeat his misstep.

Kellogg, which has featured Phelps on its Frosted Flakes and Corn
Flakes cereal boxes, is the first company to drop Phelps after a
British tabloid last weekend published a photograph of him inhaling
from a marijuana pipe.

Phelps, 23, admitted that the photo, taken at a student party at the
University of South Carolina, was authentic. He subsequently
apologized, calling his behavior "inappropriate."

Several of Phelps's sponsors -- including Speedo and Omega -- have
accepted his apology. Others, including Visa and Subway, have not
taken a position.

As it stands, Phelps's actions have already put a dent into his
sponsorship spoils, which some marketing experts say could reach $100
million in his lifetime.