News Release

NASHVILLE, Tenn.--(BUSINESS WIRE)--March 21, 2005--Corrections Corporation of America (NYSE:CXW) (the "Company") announced today that, in connection with its pending offer (the "Offer") to purchase any and all of its outstanding $250.0 million 9.875% Senior Notes due 2009, it has received the required consents to amend the indenture governing the 9.875% notes as detailed in the Offer to Purchase and Consent Solicitation Statement, dated March 8, 2005.

As a result of obtaining the required consents, the Company executed and delivered a supplemental indenture setting forth the amendments. The supplemental indenture provides that the amendments will only become operative when the 9.875% notes tendered prior to 5:00 p.m., New York City time, on Monday, March 21, 2005 (the "Consent Date") and not validly withdrawn, are purchased by the Company. As of the Consent Date, the Company had received tenders of notes and deliveries of related consents from all of the holders of the 9.875% notes outstanding. Those holders who tendered their 9.875% notes by 5:00 p.m., New York City time, on the Consent Date will be eligible to receive a total consideration of 111.067% of the principal amount of the 9.875% notes validly tendered, which includes a consent payment equal to $30 per $1,000 principal amount of notes tendered.

As previously announced, the tender offer will expire at 5:00 p.m., New York City time, on April 4, 2005 (the "Expiration Date").

The tender offer is subject to, and conditioned upon, the receipt by the Company of proceeds from an offering of its debt securities under a new financing. This financing condition is in addition to other conditions set forth in the Offer to Purchase and Consent Solicitation Statement. The Company expects to pay holders who validly tender their notes by the Consent Date promptly following the satisfaction of the financing condition and the other conditions to the tender offer, which the Company expects to occur on or around March 23, 2005.

Lehman Brothers Inc. is the Dealer Manager and Solicitation Agent, and D.F. King & Co., Inc. is the Information Agent and Tender Agent, in connection with the Offer and Consent Solicitation. Requests for information should be directed to Lehman Brothers Inc. at (212) 528-7581 (call collect) or (800) 438-3242 (toll free). Requests for documents should be directed to D.F. King & Co., Inc. at (212) 269-5550 (call collect) or (800) 659-5550 (toll free).

This press release is not an offer to purchase or the solicitation of an offer to sell with respect to the notes. The offers are being made solely by the Offer to Purchase and Consent Solicitation Statement.

About the Company

Corrections Corporation of America 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. The Company currently operates 64 facilities, including 39 company-owned facilities, with a total design capacity of approximately 70,000 beds in 19 states and the District of Columbia. The Company 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, the Company's 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. The Company also provides 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 the Company'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 and the public acceptance of the Company's services; (iii) the Company's ability to obtain and maintain correctional facility management contracts, including as the result of sufficient governmental appropriations, inmate disturbances and the timing of the opening of new facilities; (iv) increases in costs to construct or 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; (v) changes in government policy and in legislation and regulation of the corrections and detention industry that adversely affect the Company's business; (vi) the availability of debt and equity financing on terms that are favorable to the Company; and (vii) 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 the Company with the Securities and Exchange Commission.

The Company takes no responsibility for updating the information contained in this press release following the date hereof 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.

    CONTACT: Corrections Corporation of America
             Karin Demler (Investor Relations), 615-263-3005

    SOURCE: Corrections Corporation of America