Corrections Corporation of America Comments on Status of Contract wih Williamson County and Immigration and Customs Enforcement
Nashville, Tenn., October 5, 2007 – During April 2006 Corrections Corporation of America (CCA) (NYSE: CXW) modified an agreement with Williamson County, Texas, to house at the Company's T. Don Hutto Residential Center non-criminal families detained for immigration violations under an Inter-governmental Service Agreement between Williamson County and Immigration and Customs Enforcement ("ICE"). On October 2, 2007, Williamson County issued a press release announcing the approval of the County Attorney's Office to draft notifications to terminate its agreements with ICE and CCA effective October 2, 2008. The press release also indicated that the proposed notices will be on the agenda for discussion and possible action at a meeting currently anticipated to be held on Tuesday, October 9, 2007.
At this time CCA has not received official notification terminating the agreement. Further ICE has not expressed a lack of desire to utilize the T. Don Hutto facility for the housing of detainees or a concern regarding the level of services provided by CCA. However, should CCA receive a notification of termination, CCA would pursue other contractual arrangements prior to the effective termination date to accommodate the population it houses at the T. Don Hutto facility on behalf of ICE, which could be accomplished by entering into a revised arrangement with Williamson County, entering into another Inter-governmental Service Agreement with a different Texas governmental agency, or some other arrangement with ICE, which may involve a competitive procurement process. However, CCA can provide no assurances that it will be successful in continuing to house detainees on behalf of ICE at the T. Don Hutto Residential Center, should the current contract be terminated.
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 three states. CCA currently operates 65 facilities, including 41 company-owned facilities, with a total design capacity of approximately 75,000 beds in 19 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. CCA also provides health care (including medical, dental and psychiatric services), food services and work and recreational programs.
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 the Company's 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 the Company's 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 the Company's 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.
Media - Louise Grant, 615-263-3106
Investors – Karin Demler, 615-263-3005