SOURCE: Corrections Corporation of America

May 19, 2008 16:15 ET

Corrections Corporation of America Announces Contract Award From the Office of Federal Detention Trustee to Design, Build and Manage New Detention Center

NASHVILLE, TN--(Marketwire - May 19, 2008) - Corrections Corporation of America (NYSE: CXW), the nation's largest provider of corrections management services to government agencies, announced today that it has been awarded a contract by the Office of the Federal Detention Trustee (OFDT) to design, build and operate a new correctional facility located in Pahrump, Nevada, approximately 65 miles outside of Las Vegas, Nevada. CCA's new 1,072-bed Nevada Southern Detention Center is expected to house approximately 1,000 federal inmates and detainees from the United States Marshals Service as well as potential populations from U.S. Immigration and Customs Enforcement and the Federal Bureau of Prisons.

The contract provides for a guarantee of up to 750 inmates or detainees and includes an initial term of five years with three five-year renewal options. Construction of our Nevada Southern Detention Center is expected to be complete in approximately 18 months, at an estimated cost of $83.5 million.

"We are grateful to have received this award from the Office of the Federal Detention Trustee which will assist the U.S. Marshals in managing their detention populations in the western region of the country," said John Ferguson, CCA president and chief executive officer. "We are pleased to have been selected as the vendor which submitted the proposal and site that best met the evaluation criteria in this competitive procurement and look forward to continuing our relationship with the OFDT and establishing a presence in the state of Nevada."

About the Company

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. The Company currently operates 65 facilities, including 41 company-owned facilities, with a total design capacity of approximately 78,500 beds in 19 states and the District of Columbia. The Company 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, the Company's 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. The Company also provides health care (including medical, dental and psychiatric services), food services and work and recreational programs.

Forward-Looking Statements

This press release contains statements as to the Company's beliefs and expectations of the outcome of future events that are forward-looking statements as defined within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from the statements made. These include, but are not limited to, the risks and uncertainties associated with: (i) fluctuations in the Company's operating results because of, among other things, changes in occupancy levels, competition, increases in cost of operations, fluctuations in interest rates and risks of operations; (ii) changes in the privatization of the corrections and detention industry, the public acceptance of the Company's services and the timing of the opening of and demand for new prison facilities and the commencement of management contracts; (iii) the Company's ability to obtain and maintain correctional facility management contracts, including as the result of sufficient governmental appropriations and as the result of inmate disturbances; (iv) increases in costs to construct or expand correctional facilities that exceed original estimates, or the inability to complete such projects on schedule as a result of various factors, many of which are beyond the Company's control, such as weather, labor conditions and material shortages, resulting in increased construction costs; and (v) general economic and market conditions. Other factors that could cause operating and financial results to differ are described in the filings made from time to time by the Company with the Securities and Exchange Commission.

The Company 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 this press release or the information contained herein by any third-parties, including, but not limited to, any wire or internet services.

Contact Information

  • Contact:
    Louise Grant
    Marketing and Communications
    615-263-3106

    Karin Demler
    Investor Relations
    615-263-3005