SOURCE: Corrections Corporation of America

February 22, 2008 09:00 ET

Corrections Corporation of America Announces Intent to Construct a New Correctional Facility in Tennessee

NASHVILLE, TN--(Marketwire - February 22, 2008) - Corrections Corporation of America (NYSE: CXW) (the "Company" or "CCA"), the nation's largest provider of corrections management services to government agencies, announced today its intent to commence construction of a new 2,040-bed correctional center in Tennessee. The new Trousdale Correctional Center will be located in Trousdale County, Tennessee, in the community of Hartsville.

CCA expects to commence construction of the new Trousdale Correctional Center in the summer of 2008, with an estimated total construction cost of approximately $143.0 million. We currently expect to complete construction of the facility during the fourth quarter of 2009. Although we do not currently have a management contract to utilize these new beds, we expect to market the new beds to various existing state customers, including the state of Tennessee, as well as to various federal agencies.

Commenting on the new facility, President and CEO John Ferguson stated, "We are proud to announce our latest investment in our home state of Tennessee. For more than 20 years, CCA has successfully provided quality corrections solutions to various government customers, including partnerships with the Tennessee Department of Corrections and county agencies."

Ferguson continued, "As we continue to see a strong demand for prison beds, the commencement of construction of the Trousdale Correctional Center will further strengthen our development pipeline and help to meet ongoing demand while providing our customers a just-in-time solution to their prison bed needs."

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 78,000 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. These services are intended to reduce recidivism and to prepare inmates for their successful re-entry into society upon their release. We also provide 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 our 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 our services, the timing of the opening of and demand for new prison facilities and the commencement of new management contracts; (iii) our ability to obtain and maintain correctional facility management contracts, including as a result of sufficient governmental appropriations and as a 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 our 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.

We take 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.

Contact Information

  • Contact:
    Investors
    Karin Demler
    (615) 263-3005

    Media
    Louise Grant
    (615) 263-3106