News Release

Nashville, Tenn., May 10, 2004 - Corrections Corporation of America (CCA) (NYSE: CXW), the nation's largest provider of corrections management services to government agencies, announced today that it has entered into a new agreement to house inmates from the State of Hawaii at the Company's owned and operated Tallahatchie County Correctional Facility, located in Tutwiler, Mississippi. The new agreement expires on June 30, 2006.

In addition, the current contracts to house Hawaiian inmates in CCA's owned and operated Diamondback Correctional Facility, located in Watonga, Oklahoma, and its Florence Correctional Facility, located in Florence, Arizona, which were set to expire on June 30, 2004, are expected to be extended for an additional two years.

CCA currently manages approximately 1,375 inmates from the State of Hawaii. Beginning August 15, 2004, the combined contracts guarantee a minimum monthly average of 1,500 inmates to be housed at these three facilities. The contracts are not expected to have a material impact on CCA's previous guidance.

CCA expects to transfer from Florence an estimated 475 Hawaiian inmates to the Tallahatchie facility by June 7, 2004. The Company has been in discussions with a number of potential customers who have expressed an interest in the vacated space created at the Florence Correctional Facility, and expects to substantially fill these beds by the end of 2004.

The 1,100-bed Tallahatchie prison, presently houses approximately 30 county inmates, who will remain at the facility. The facility recently held an inmate population from the State of Alabama.

"CCA is pleased to have the opportunity to provide a high-quality, cost-effective solution to meet Hawaii's growing correctional needs," stated John Ferguson, president and CEO. "We appreciate our Tallahatchie employees' loyalty to CCA during the transition from our Alabama contract to this contract with Hawaii, and they are eager to begin managing this new population of inmates. Similar to Florence and Diamondback, management at Tallahatchie will also place a strong emphasis on quality programs for Hawaiian inmates while maintaining a priority on operating a safe and secure correctional environment."

About CCA

CCA 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 four states. CCA currently operates 65 facilities, including 38 company-owned facilities, with a total design capacity of approximately 66,000 beds in 20 states and the District of Columbia. CCA 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, 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 CCA'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 and the timing of the opening of and demand for new prison facilities; (iii) increases in costs to 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 (iv) 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 CCA 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 or the information contained herein by any third-parties, including, but not limited to, any wire or internet services.