Corrections Corporation of America Announces Sale of Southern Nevada Women's Correctional Facility

October 3, 2001
NASHVILLE, Tenn., Oct 3, 2001 (BUSINESS WIRE) -- Corrections Corporation of America (NYSE:CXW) today announced that it has sold its Southern Nevada Women's Correctional Facility in Las Vegas, Nevada for approximately $24.1 million to the State of Nevada. The State of Nevada exercised its right to purchase the facility pursuant to the terms of a 20-year lease agreement with the Company. Subsequent to the sale, the Company will continue to manage the facility. The net proceeds from this sale were used to pay down amounts outstanding under the senior credit facility.

"In announcing this sale, we are also pleased to report our ongoing engagement to operate and manage the facility for the State of Nevada," said John D. Ferguson, president and chief executive officer. "The proceeds from the divesture of this asset, less expenses, were used to pay down amounts outstanding under the Company's senior credit facility. As a result, this year the Company has paid down approximately $138.9 million against the senior credit facility through the sale of assets."

In March 2001, Corrections Corporation of America sold its Mountain View Correctional Facility in Spruce Pine, North Carolina, for approximately $25.0 million. In April 2001, the Company sold its interest in its Agecroft prison facility, located in Salford, England, for approximately $65.7 million. In addition, the Company sold its Pamlico Correctional Facility located in Bayboro, North Carolina, for approximately $24.1 million in June 2001.

    About the Company
The Company is the nation's largest provider of outsourced correctional management services, housing an inmate population larger than that of all but five public correctional systems in the United States. 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, each of the Company's facilities offers a variety of rehabilitation and education programs, including basic education, life skills and employment training and substance abuse treatment. The Company also provides health care (including medical, dental and psychiatric services), institutional food services and work and recreational programs. The Company owns or manages approximately 65,000 beds in 70 facilities in the United States and Puerto Rico, with 64 facilities under contract for management containing approximately 61,000 beds, four leased facilities and two facilities under construction.

    Forward-Looking Statements
This press release contains statements that are forward-looking statements as defined within 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. Factors that could cause operating and financial results to differ are described in the Company's Form 10-K, as well as in other documents filed with the Securities and Exchange Commission, and these factors include, but are not limited to, the growth of the private corrections and detention industry, the Company's ability to obtain and maintain facility management contracts and general market conditions. The Company does not undertake any obligation to publicly release the result of any revisions to forward-looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

The Company takes no responsibility for updating the information contained in this press release following the date hereof or for any changes or modifications made to the press release or the information contained herein by any third-parties, including, but not limited to, any wire or internet services.

CONTACT:          Corrections Corporation of America
                  Karin Demler, 615/263-3005

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