CCA Announces Extension of Contract With the State of California and
Intent to Award New Contract

November 5, 2010


CCA (Corrections Corporation of America) (NYSE: CXW), America's leader in partnership corrections, announced today that the California Department of Corrections and Rehabilitation (CDCR) has renewed its contract with CCA to manage up to 9,588 California inmates at four of the five CCA facilities currently housing California inmates (the Contract Extension). The CDCR also notified CCA of its Intent to Award an additional contract to manage up to 3,256 offenders at CCA's Crowley County Correctional Facility in Colorado and CCA's Prairie Correctional Facility in Minnesota (the Intent to Award). Between the Contract Extension and the Intent to Award, CCA expects to have the opportunity to house a total of up to 12,844 inmates for the CDCR in six facilities. CCA currently has a contract to house up to 10,468 California inmates.

Pursuant to terms of the Contract Extension the CDCR will continue to utilize CCA's Tallahatchie County Correctional Facility in Mississippi, North Fork Correctional Facility in Oklahoma, as well as CCA's Red Rock Correctional Center and La Palma Correctional Center both in Arizona. In order to make beds available to other federal partners, CCA elected not to renew its contract with the CDCR at its Florence Correctional Center in Arizona.

The term of the Contract Extension is for two-years beginning July 1, 2011. The Intent to Award is subject to final negotiations and is not expected to result in inmate population transfers until 2012. As a result of the Intent to Award, CCA is in discussions with Colorado to provide alternatives for housing approximately 1,600 Colorado inmates currently at CCA's Crowley facility.

"We are very pleased to be provided the opportunity to expand our partnership with the CDCR," stated Damon Hininger, President and CEO. "This new contract exemplifies management's focus on filling our existing inventory. We believe our available bed capacity and the level of service we have provided the CDCR over the last four years were significant considerations that led to this intent to award."

About CCA

CCA is the nation's largest owner and operator of partnership correction 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 66 facilities, including 45 company-owned facilities, with a total design capacity of approximately 90,000 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 our 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) general economic and market conditions, including the impact governmental budgets can have on our per diem rates, occupancy and overall utilization; (ii) 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; (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) 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; (v) election outcomes and new administrations' desire to utilize the partnership corrections industry (vi) judicial challenges regarding the transfer of California inmates to out of state private correctional facilities; and (vii) 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. Other factors that could cause operating and financial results to differ are described in the filings made from time to time by us with the Securities and Exchange Commission.

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 this press release.


Karin Demler

Louise Grant

SOURCE: Corrections Corporation of America