Corrections Corporation of America Announces Contract Award With Federal Bureau of Prisons

NASHVILLE, TN–(Marketwire – April 1, 2009) – Corrections Corporation of America (“CCA”) (NYSE: CXW) announced today that it has been awarded a contract with the Federal Bureau of Prisons (BOP) to house up to 2,567 federal inmates at CCA’s recently completed 2,232-bed Adams County Correctional Center in Mississippi.

The four-year contract, awarded as part of the Criminal Alien Requirement 8 Solicitation (“CAR 8”), also provides for up to three two-year renewal options and includes contract provisions that are materially comparable to the Company’s other contracts with the BOP, including a 50 percent guarantee of occupancy during activation period and a 90 percent guarantee thereafter. CCA expects to receive a Notice to Proceed within 120 days of the contract award and expects to commence receiving inmates during the third quarter of 2009. Under the provisions of the award, the Company could earn revenues of up to approximately $226.4 million during the initial four-year term of the contract.

“We are delighted that the Federal Bureau of Prisons has chosen our company in awarding this contract. We currently house more than 8,500 inmates from the BOP at several of the facilities we own. We believe this new award reflects the BOP’s ongoing commitment to utilize the private sector to allow the agency the flexibility in managing its bed-space needs in a reasonable and cost effective manner,” stated John Ferguson, Chief Executive Officer. “We developed our Adams County facility in anticipation of future demand from our customers, and we believe our ability to immediately provide a facility capable of meeting the capacity requirements of the BOP combined with our commitment to providing quality service were important factors in obtaining this award.”

About CCA

CCA is the nation’s largest owner and operator of privatized correctional and detention facilities and one of the largest prison operators in the United States, behind only the federal government and three states. CCA currently operates 64 facilities, including 44 company-owned facilities, with a total design capacity of approximately 85,000 beds in 19 states and the District of Columbia. CCA specializes in owning, operating and managing prisons and other correctional facilities and providing inmate residential and prisoner transportation services for governmental agencies. In addition to providing the fundamental residential services relating to inmates, our facilities offer a variety of rehabilitation and educational programs, including basic education, religious services, life skills and employment training and substance abuse treatment. These services are intended to reduce recidivism and to prepare inmates for their successful re-entry into society upon their release. CCA also provides health care (including medical, dental and psychiatric services), food services and work and recreational programs. To learn more about CCA, visit www.correctionscorp.com.

CCA takes no responsibility for updating the information contained in this press release following the date hereof to reflect events or circumstances occurring after the date hereof or the occurrence of unanticipated events or for any changes or modifications made to the press release.

source: http://www.marketwire.com/press-release/Corrections-Corporation-Of-America-NYSE-CXW-969413.html

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