Prison Realty Reports Second Quarter Results

August 11, 1999

    NASHVILLE, Tenn., Aug. 11 /PRNewswire/ -- Prison Realty Trust, Inc.
("Prison Realty" or the "Company") (NYSE: PZN), a Maryland corporation, today
announced second quarter 1999 results.  Funds from operations (FFO) of
$70.4 million, or $0.60 per diluted share were earned on revenues of
$73.8 million for the quarter ended June 30, 1999.  In addition, the Company
announced selected occupancy and financial data related to the Company's
primary tenant, Corrections Corporation of America ("CCA"), and the
two service companies affiliated with the Company who together operate under
the name of Corrections Corporation of America.
    Corrections Corporation of America's June 30, 1999 system-wide occupancy
level was 94.1%, up from 91.4% at March 31, 1999.  The occupancy level for
Prison Realty-owned facilities managed by CCA has increased from 85.4% at
March 31, 1999 to 89.6% at June 30, 1999.  Currently, the CCA managed
facilities are 89.8% occupied.  In addition, CCA reported a net decrease in
cash and cash equivalents of $4.3 million for the six month period ended
June 30.
    Chairman and CEO Doctor R. Crants commented as follows: "Since our last
earnings report we have successfully increased our credit facility to
$1.0 billion and issued $100.0 million in high yield notes, enabling us to
continue to develop quality bed space for government in keeping with our
business plan.  Operating results were negatively impacted by the issuance of
equity in the second quarter as we worked to arrange our long term debt
financing.  We feel the short term effect of this dilution is more than offset
by the long term competitive advantage we gain by remaining the primary
private provider of available cell space.  For instance, on August 6th a
Commerce Business Daily notice announced that the Federal Bureau of Prisons
expected to issue an RFP for 7,500 bed spaces in contractor-owned,
contractor-managed facilities on September 1.  The CBD notice specifically
excludes from participation new construction or new expansions started after
the date of the notice.  Only facilities already under construction and able
to accept inmates within 90 days of contract award are eligible to participate
in this RFP.  In light of this and other identified customer requests for
secure beds in the immediate future, I could not be more pleased with our
current position."
    "In keeping with our commitment to enhance CCA disclosure, we are
including certain cash performance measures and selected data of our primary
tenant CCA in conjunction with our earnings release.  In addition, we will be
including CCA financials in our 10Q when filed."
    Prison Realty's business is the ownership of correctional and detention
facilities.  The Company provides financing, design, construction and
renovation of new and existing jails and prisons that it leases to both
private and governmental managers.  Prison Realty currently owns
51 correctional and detention facilities in 17 states, the District of
Columbia and the United Kingdom having a total design capacity in excess of
49,000 beds, of which twelve new facilities are under construction.  Prison
Realty Trust, Inc. is based in Nashville, Tennessee and plans to qualify as a
real estate investment trust under the Internal Revenue Code.  Entities
operated under the name of Corrections Corporation of America provide
correctional and detention facility management services to governments under
contracts for 83 correctional and detention facilities with an approximate
design capacity of 73,000 beds, of which 69 facilities with an approximate
design capacity of 53,000 beds are in operation.

    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.

                         Financial Tables to follow.

                          Prison Realty Trust, Inc.
                       Consolidated Statement of Income
               For the Three and Six Months Ended June 30, 1999
        (Unaudited and amounts in thousands, except per share amounts)

                                           Three Months         Six Months
                                                  Ended              Ended
                                          June 30, 1999      June 30, 1999

      Rental revenues                           $65,828           $129,468
      Interest income                             5,827             12,041
      Licensing fees                              2,186              4,318
                                                 73,841            145,827

      Depreciation and amortization              10,502             20,419
      General and administrative                  1,725              2,607
      Interest expense                            7,036             15,309
      Loss on disposition of property             1,631              1,631
                                                 20,894             39,966

    OPERATING INCOME                             52,947            105,861

    Equity in earnings of subsidiaries
     and amortization of deferred gains           7,476             15,157

    INCOME BEFORE INCOME TAXES                   60,423            121,018

    Provision for change in tax status               --             83,200
    NET INCOME                                   60,423             37,818

    Dividends to preferred shareholders          (2,150)            (4,300)

    NET INCOME AVAILABLE FOR COMMON SHARES      $58,273            $33,518

    Basic                                         $0.50              $0.30

    Diluted                                       $0.50              $0.30

      OUTSTANDING, BASIC                        116,421            111,871
      OUTSTANDING, DILUTED                      117,763            112,687

    Net Income Available
      for Common Shares                         $58,273            $33,518
    Plus real estate depreciation                10,502             20,419
    Add back non-recurring items:
    Write off of deferred tax asset                  --             83,200(a)
    Loss on disposition of property               1,631              1,631(b)
                                                $70,406           $138,768

    Basic                                         $0.60              $1.24

    Diluted                                       $0.60              $1.23

      OUTSTANDING, BASIC                        116,421            111,871
      OUTSTANDING, DILUTED                      117,763            114,071

    (a) -- One-time charge related to change of Company tax status from
           C-corporation to REIT.
    (b) -- Non-cash loss resulting from resolution of CCA pre-Merger facility
           issue (1997).

                            Prison Realty Trust, Inc.
                            Consolidated Balance Sheet
                                  June 30, 1999
                       (Unaudited and amounts in thousands)

                                                                    June 30,
    Real estate properties, at cost:
      Correctional and detention facilities                     $2,200,325
      Less accumulated depreciation                               (27,799)
        Net real estate properties                               2,172,526
    Cash and cash equivalents                                        2,052
    Restricted cash                                                 38,870
    Notes Receivable from New CCA                                  138,549
    Investments in affiliates and others                           129,975
    Investments in direct financing leases                          74,981
    Amounts under lease arrangements                                44,423
    Receivable from New CCA                                         10,593
    Other assets                                                    41,607

        Total assets                                            $2,653,576

    Distributions payable                                         $215,642
    Bank credit facility                                           648,750
    Notes payable                                                  100,000
    Convertible subordinated notes and other debt                   70,796
    Accounts payable and accrued expenses                           99,373
    Income taxes payable                                             5,746
    Deferred gains on sales of contracts                           110,996
    Deferred tax liability                                          32,000

        Total liabilities                                        1,283,303

    Preferred stock, $.01 par value; 10,000 shares authorized;
        4,300 outstanding                                               43
    Common stock, $.01 par value; 300,000 shares authorized,
        118,116 shares issued and outstanding                        1,182
    Additional paid-in-capital                                   1,378,922
    Cumulative net income                                          121,018
    Accumulated distributions                                    (130,892)

        Total stockholders' equity                               1,370,273
        Total liabilities and stockholders' equity              $2,653,576

                      Corrections Corporation of America
                        Selected Financial Information
                    For the Six Months Ended June 30, 1999
        (Unaudited and amounts in thousands, except per share amounts)

    The following table includes selected financial information from Prison
    Realty Trust's primary tenant, Corrections Corporation of America, for
    the six months ended June 30, 1999:

                                                            Six Months
                                                         June 30, 1999

    Revenues                                                  $244,109
    Net loss                                                  (48,134)

    Current assets                                              94,955
    Total assets                                               224,995
    Current liabilities                                         49,910
    Deferred credits                                            64,479
    Total liabilities                                         251,389 (a)
    Stockholders' equity                                      (26,394)

    Cash flows provided by operating activities                 $3,091
    Cash flows used in investing activities                     (1,256)
    Cash flows used in financing activities                     (6,125)
    Net decrease in cash for the six months ended June 30, 1999 (4,290)
    CASH AND CASH EQUIVALENTS, beginning of the period          19,057
    CASH AND CASH EQUIVALENTS, end of the period               $14,767

    (a) -- At June 30, 1999 there were no borrowings under CCA's revolving
           credit facility, nor are there currently.