News Release

NASHVILLE, Tenn.--(BUSINESS WIRE)--May 18, 2001--Corrections Corporation of America (NYSE: CXW) announced today that it has completed its previously announced reverse stock split of its common stock at a ratio of one-for-ten. The reverse stock split, which was effective today, Friday, May 18, 2001, was previously approved by CCA's stockholders at CCA's 2000 Annual Meeting of Stockholders held on December 13, 2000.

As the result of the reverse stock split, every ten shares of CCA's common stock issued and outstanding immediately prior to the reverse stock split has been reclassified and changed into one fully paid and nonassessable share of CCA common stock. CCA will pay its registered common stock holders cash in lieu of issuing fractional shares in the reverse stock split at a post reverse-split rate of $8.60 per share, which is based on the closing price of the common stock on the New York Stock Exchange on Thursday, May 17, 2001. American Stock Transfer & Trust Company, CCA's newly appointed transfer agent and registrar, is effecting the exchange of certificates representing the shares of common stock with CCA's registered common stock holders.

The common stock continues to trade on the NYSE on a post-reverse stock split basis under the symbol "CXW." Except for the payment of cash in lieu of fractional shares, the reverse stock split does not affect any stockholder's proportionate equity interest in CCA, nor does it change any of the rights of the holders of the common stock. The shares of CCA's Series A Preferred Stock and Series B Preferred Stock are not affected by the reverse stock split. As the result of the reverse stock split, CCA has approximately 25.2 million shares of common stock currently issued and outstanding.

About the Company

CCA is the nation's largest provider of detention and corrections services to governmental agencies with approximately 61,000 beds in 65 facilities under contract for management in the United States and Puerto Rico. CCA's full range of services includes management of new or existing jails and prisons for adults and juveniles, long distance transportation services and the design, construction and renovation of prison facilities.

Forward-Looking Statements

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 CCA's Form 10-K, as well as in other documents filed with the Securities and Exchange Commission, and these factors include, but are not limited to, the growth of the private corrections and detention industry, CCA's ability to obtain and maintain facility management contracts and general market conditions.

CCA 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.