Corrections Corporation of America Completes Merger With Two Affiliated Service Companies
NASHVILLE, Tenn.--(BUSINESS WIRE)--Dec. 4, 2000--Corrections Corporation of America (formerly Prison Realty Trust, Inc.) (NYSE:CXW) announced today that it has completed the previously announced mergers with its two affiliated service companies, Prison Management Services, Inc. and Juvenile and Jail Facility Management Services, Inc., effective December 1, 2000. In the merger, each of the service companies was merged with and into the Company's wholly owned operating subsidiary. As the result of the merger, the Company will issue approximately 2,880,000 shares of its common stock to the wardens of the facilities operated by the service companies in exchange for all shares of stock of the service companies held by such wardens at the time of the merger.
"We are pleased to have completed another step in the restructuring of the companies," said John D. Ferguson, the Chief Executive Officer and President of the Company. "The completion of the service company mergers is another step in the streamlining of our corporate structure and the process of returning our company to the corporate model that was so successful in the past. The reconsolidation also allows our management team to improve operations, enhance customer service and reduce costs."
About the Company
The Company is the nation's largest provider of detention and corrections services to governmental agencies. The Company is the industry leader in private sector corrections with approximately 61,000 beds in 68 facilities under contract for management in the United States and Puerto Rico. The Company's full range of services includes design, construction, ownership, renovation and management of new or existing jails and prisons, as well as long distance inmate transportation services.
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 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.
|CONTACT:||Corrections Corporation of America|
|Media - Susan Hart, 615/263-3104|
|Investor - Karin Demler, 615/263-3005|