News Release

    NASHVILLE, Tenn., Feb. 3 /PRNewswire/ -- Prison Realty Corporation (the
"Company") (NYSE: PZN), a Maryland corporation and the successor entity of the
merger between CCA Prison Realty Trust ("PRT") and Corrections Corporation of
America consummated January 1, 1999, today announced fourth quarter 1998 and
year end operating results for PRT.  Funds from operations (FFO) of
$14.1 million, or $0.62 per share were earned on revenues of $21.3 million for
the quarter ended December 31, 1998, compared to FFO of $11.0 million, or
$0.50 per share on revenues of $11.7 million for the same period of the
previous year. For PRT's first full year of operations ended December 31,
1998,  FFO of $50.3 million, or $2.28 per share was earned on revenues of
$70.7 million.
    D. Robert Crants, III, President of the Company commented on results as
follows: "We are pleased to announce the final quarter of PRT operations at a
level consistent with investor expectations.  PRT was able to consistently
report increased revenues and FFO per share in every quarter since its
formation in July, 1997.  With the successful closing of our merger January 1,
1999, Prison Realty Corporation is now positioned to continue the aggressive
development of correctional and detention facilities by capitalizing on the
improved access to capital provided by the combined entity strengths."
    The postmerger company owns 44 correctional and detention facilities in
16 states, the District of Columbia and the United Kingdom having a total
design capacity in excess of 40,000 beds, of which seven new facilities are
under construction. Prison Realty Corporation is based in Nashville, Tennessee
and plans to qualify as a real estate investment trust under the Internal
Revenue Code.  The Company's business is to build new and acquire existing
correctional and detention facilities from both private prison managers and
directly from government entities.
    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.
These and other risks and uncertainties are detailed in the Company's reports
filed with the SEC.


                          CCA PRISON REALTY TRUST
                    CONSOLIDATED STATEMENTS OF INCOME
               (Amounts in thousands, except per share amounts)


                   For the Three Months Ended      For the Twelve Months ended
                           December 31                    December 31
                         1998        1997               1998        1997 (1)
    REVENUES
      Rental      $    21,139    $    11,687     $    69,867    $    19,980
      Interest            136             45             796            600
                       21,275         11,732          70,663         20,580

    EXPENSES
      Depreciation and
       Amortization     4,427          2,978          17,609         5,088
      Interest          4,077            163           9,827           184
      General and
       Administrative     922            591           2,648           981
      Write off of
       Loan Costs       2,559             --           2,559            --
      Merger Costs      8,530             --           8,530            --
                       20,515          3,732          41,173         6,253

    Net Income            760          8,000          29,490        14,327

    Dividends to Preferred
     Shareholders      (2,150)            --          (7,869)           --

    Net Income Available
      for Common
       Shares     $    (1,390)     $   8,000     $    21,621     $  14,327

    Net Income Available Per
     Common Share:
      Basic       $     (0.06)     $    0.37     $      0.99     $    0.66
      Diluted     $     (0.06)     $    0.36     $      0.98     $    0.65


    Weighted Average Number
     of Shares Outstanding,
      Basic            22,543         21,576          21,818        21,576
    Weighted Average
     Number of
     Shares Outstanding,
      Diluted          22,626         22,042          22,103        22,007


    Funds From Operations:
      Net Income Available
       for Common
        Shares   $    (1,390)    $    8,000      $    21,621   $    14,327
      Plus Real Estate
       depreciation    4,427          2,978           17,609         5,088
      Add back non-
       recurring items:
        Plus Write Off of
         Loan Costs    2,559             --            2,559            --
        Plus Merger
         Costs         8,530             --            8,530            --
                 $    14,126    $    10,978      $    50,319   $    19,415

    Funds From Operations
     Per Common Share:
      Basic      $      0.63    $      0.51      $      2.31   $      0.90
      Diluted    $      0.62    $      0.50      $      2.28   $      0.88

    (1) - For the period from July 18, 1997 (inception) to December 31, 1997.

    The accompanying Notes to Consolidated Financial Statements are an
integral part of this statement.


                           CCA PRISON REALTY TRUST
                         CONSOLIDATED BALANCE SHEETS
                         December 31, 1998 and 1997
                   (Amounts in thousands, except share amounts)

                                     Dec. 31, 1998            Dec. 31, 1997
    ASSETS
    Real Estate Properties, at Cost
     Correctional and Detention
      Facilities                   $    867,832             $    458,360
     Less - Accumulated Depreciation    (22,698)                  (5,088)
        Net Real Estate Properties      845,134                  453,272

    Cash and Cash Equivalents            21,894                      756
    Restricted Cash                      17,188                       --
    Other Assets                          9,496                      410
          TOTAL ASSETS             $    893,712             $    454,438



    LIABILITIES AND SHAREHOLDERS' EQUITY
    LIABILITIES
    Distributions Payable          $      2,150             $      9,170
    Line of Credit                      279,600                   32,000
    Accounts Payable and Accrued
     Expenses                            29,248                      519
          TOTAL LIABILITIES             310,998                   41,689

    Commitments and Contingencies            --                       --

    SHAREHOLDERS' EQUITY
     Preferred Shares, $.01 par value;
      10,000,000 shares authorized;
      4,300,000 and 0 shares issued
      and outstanding, respectively          43                       --
     Common Shares, $.01 par value;
      90,000,000 shares authorized;
      25,315,380 and 21,576,000 shares
      issued and outstanding, respectively  253                      216
     Capital in Excess of Par Value     603,195                  414,841
     Accumulated Distributions
      in Excess of Net Income           (20,777)                  (2,308)
          TOTAL SHAREHOLDERS' EQUITY    582,714                 412,749
          TOTAL LIABILITIES
           AND SHAREHOLDERS' EQUITY $   893,712             $    454,438





SOURCE  Prison Realty Corporation
 
Company News On Call:  
http://www.prnewswire.com/comp/208225.html or fax, 800-758-5804,
ext. 208225
 
Photo Notes: http://www.newscom.com/cgi-bin/prnh/19981120/CHF004
or NewsCom, 213-237-5431 - Photo of Doctor R. Crants, CCA
Chairman of the Board and
CEO