SOURCE: Corrections Corporation of America

May 06, 2008 18:08 ET

Corrections Corporation of America Announces Expansion Plan at New Facility Under Construction in Mississippi

NASHVILLE, TN--(Marketwire - May 6, 2008) - Corrections Corporation of America (CCA), the nation's largest provider of corrections management services to government agencies, announced today its intent to increase the total capacity of its Adams County Correctional Center, in Adams County, Mississippi, which is currently under construction, by an additional 564 beds. Upon completion of the additional beds, the Adams County facility, located in Natchez, will have a total design capacity of 2,232 beds, at a total construction cost of $135 million. The additional capacity means greater economic stimulation to southwest Mississippi, bringing increased jobs and greater tax revenues.

With the expansion at the Adams County facility, which represents CCA's fourth facility in Mississippi and the company's 67th nationwide, the Adams County Correctional Center will employ more than 300 individuals, almost all of whom will be recruited from the southwest Mississippi region. The exact number of employees generated by the expansion depends upon the ultimate government customer and specific contract.

As the owner of the correctional center, CCA pays property taxes, unlike public correctional facilities, and the company anticipates annual taxes of $1.4 million, as well as annual utility payments of approximately $1.7 million for the Adams facility.

Located on a site that spans more than 140 acres, the original Adams construction project is anticipated to be complete in December 2008. The company anticipates completion of this additional $30 million construction project during the first quarter of 2009.

"CCA has made a strong commitment of resources in Mississippi. With the opening of our Adams County Correctional Center, we will employ more than 1,000 Mississippians statewide, bringing stable careers, strong community outreach and valuable taxes to stimulate the local economies where our four facilities are located," said John Ferguson, president and CEO. "Although we currently do not have a management contract for the Adams County facility, CCA decided to move forward with increasing the design capacity based on anticipated demand from federal and state agencies."

As a separate sign of economic stimulation, CCA is currently completing the last phase of a major expansion of nearly 1,600 beds at its Tallahatchie County Correctional Facility in Tutwiler, Mississippi. The company completed a 720-bed expansion of this facility during the fourth quarter of 2007. The latest expansion of 848 beds is expected to be completed during the second quarter of 2008 at an estimated incremental cost of approximately $52 million. Following the completion of these expansions, the Tallahatchie facility will have a total design capacity of 2,672 beds. CCA has contracted with the state of California for utilization of the Tallahatchie facility.

The Governor of Mississippi, Haley Barbour, added, "Once again, I am very pleased that Corrections Corporation of America has taken advantage of development opportunities available in the state of Mississippi and has seized the initiative to expand further in Adams County. As I stated at the Adams facility groundbreaking in August of last year, I welcome these new jobs and this additional investment by our partner CCA in Mississippi. The state and local officials and company representatives have worked together on this important project, and I look forward to a continuing strong relationship."

In addition to owning the Tallahatchie and Adams County facilities, CCA manages on behalf of the state of Mississippi both the Delta Correctional Facility in Greenwood and the Wilkinson County Correctional Facility in Woodville, Mississippi.

The publicly traded company, headquartered in Nashville, Tenn., was named by Corporate Responsibility Officer magazine in 2008 as one of the nation's Top 100 Best Corporate Citizens. Forbes magazine in 2007 named CCA as the Nation's Best Managed Company in the area of Business Services, and GI Jobs Magazine has named the company one of the nation's Top 50 Military-Friendly Employers.

About the Company

Corrections Corporation of America 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. We currently operate 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. We specialize 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.

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