News Release

    NASHVILLE, Tenn., Oct. 22 /PRNewswire/ -- Corrections Corporation of
America (NYSE: CCA) today announced net income for the third quarter of
$21.1 million, up 54% from the third quarter last year and the equivalent of
$.26 per basic and $.24 per diluted share.
    For the three months ended September 3O, l998, CCA recorded
$179.1 million in revenue, a 41% increase over the same quarter in 1997.  For
the comparable quarter of 1997, revenues were $127.1 million, with net income
of $13.7 million, or $.18 per basic and $0.15 per diluted share.
    For the first nine months of 1998, the company reported net income of
$60.6 million, up 63% from the first three quarters of 1997.  Earnings per
share were $0.76 basic and $0.68 diluted, while last year's earnings per share
for the first nine months were $.49 and $.42 basic and diluted, respectively.
Revenues through September 30 grew 49% to $484.5 million in 1998, from
$325.9 million in 1997.
    "Our operational performance continued to strengthen in the third
quarter," said CCA Chairman, CEO and President Doctor R. Crants, "with revenue
per manday at $43.56 and operating cost per manday at $30.30.  The $13.26
spread between the two is the largest in our history.
    "We have brought more beds on line so far this year than in any other
nine month period, yet the company's occupancy rate for the quarter was 95.9%
and for the nine months was 95.2%.  The current demand from our customers is
producing the highest level of occupancy for CCA in the decade of the 90s," he
said.
    CCA plans to open about 7,200 more beds in the fourth quarter, bringing
new bed additions to over 18,000 for the 1998 year.
    "Outside of our excellent results from operations, we experienced some
erosion in interest income," Crants explained.  "Of course, the decrease in
interest income was in part due to sharply lower interest rates on our cash
balances, as rates generally declined.  It is also attributed to increased
investment of our cash in new owned-and-managed projects.  We believe our
ability to provide government with capital for new beds gives us a competitive
advantage."
    CCA has proposed a merger with Prison Realty Trust (NYSE: PZN) that will
give CCA shareholders 0.875 share of PZN for every share of CCA stock held.
Once closed, the resulting company will operate as a real estate investment
trust, or REIT.  Consummation of the merger is planned for January 1999.

    CCA manages prisons and other correctional institutions for governmental
agencies.  The company is the industry leader in private sector corrections
with 64,956 beds in 78 facilities under contract in the U.S., Puerto Rico,
Australia and the United Kingdom.  CCA provides a full range of services that
includes finance, design, construction, renovation and management of new or
existing facilities, as well as inmate transportation.
    This press release contains forward-looking statements that involve
various risks and uncertainties.  Actual results could differ materially from
those contained in these forward-looking statements due to certain factors,
including business and economic conditions and availability of financing.
These and other risks and uncertainties are detailed in the company's reports
filed with the SEC.

                      CORRECTIONS CORPORATION OF AMERICA
                             Financial Highlights
                       (000's except per share amounts)

                             Three months ended        Nine months ended
                               September 30,             September 30,
                             1998          1997        1998         1997

    Revenues             $179,136      $127,069    $484,505     $325,931
    Expenses:
      Operating           124,794        93,062     339,136      234,034
      Lease                15,702         6,826      40,638        9,123
    General &
     administrative         5,720         4,267      16,183       11,558
    Depreciation &
     amortization           4,386         3,011      11,673       10,941
                          150,602       107,166     407,630      265,656
    Operating income       28,534        19,903      76,875       60,275
    Interest income, net     (112)       (1,625)     (5,323)        (273)
    Income before income
      taxes                28,646        21,528      82,198       60,548
    Provision for income
      taxes                 7,544         7,863      21,565       23,276
    Net income           $ 21,102      $ 13,665    $ 60,633     $ 37,272

    Net income per share:
      Basic              $   0.26      $   0.18    $   0.76     $   0.49
      Diluted            $   0.24      $   0.15    $   0.68     $   0.42

    Weighted average shares outstanding:
      Basic                80,970        77,721      79,924       76,525
      Diluted              89,726        90,606      89,728       89,897

    Beds in operation
     (end of period)       46,886        36,049      46,886       36,049
    Compensated
     mandays            4,024,450     2,830,821  11,091,585    7,410,857
    Average occupancy        95.9%         92.7%       95.2%        93.4%


                                September 30,    December 31,
    (000's)                            1998             1997

    Cash and cash equivalents      $ 27,627         $136,147
    Current assets                  179,267          233,422
    Property & equipment, net       613,892          266,493
    Notes receivable                  1,151           59,264
    Investment in direct
     financing leases                75,217           90,184
    Total assets                    944,927          697,940

    Current liabilities             124,771           96,660
    Long-term debt                  292,832          127,075
    Total liabilities               531,654          349,864

    Stockholders' equity            413,273          348,076