News Release

CALIFORNIA CITY, Calif.--(BUSINESS WIRE)--May 21, 2001--The Kern County Grand Jury's Law and Justice Committee has high praise for the California City Correctional Institution, in their report released May 10, 2001. The Committee finds that "Although the exterior of the prison is very forbidding...the interior of the facility is the cleanest we have seen in Kern County." The facility is owned and operated by Corrections Corporation of America (NYSE:CXW), based in Nashville, TN.

The report goes on to state that Warden Percy Pitzer's idea of using verbal persuasion rather than physical force (to maintain order) is the opposite of that used by the State Correctional Officers. "The behavior of the prisoners and the detention officers reflects a cooperative rather than an adversarial atmosphere," and "Prospective officers are given a more rigorous background check than applicants at State Institutions," continue the comments.

California law requires that each County grand jury "inquire into the condition and management of the public prisons within the County." The Grand Jury report was in response to that legal duty.

"We are extremely proud of the findings reported by the Kern County Grand Jury Law and Justice Committee," said City Manager Jack Stewart. "The report confirms our faith in the privatization of correctional institutions, and in particular CCA," said Stewart, "They have proven beyond a doubt that the private sector can operate within this industry as well as or better than public agencies."

California City Mayor Larry Adams stated "CCA had their first report card issued by the Federal Bureau of Prisons after six months of operation, and got an A+." He continued, "In today's society, it is rare that business deals are made with a handshake, and verbal agreements are kept without the need for attorneys' contracts. From the beginning, CCA has hired locally, purchased locally, and done everything within their power to become part of this community. They have the highest respect of myself and the City Council for the way they have conducted themselves since their arrival."

CCA's California City facility is a 2304-bed medium level correctional facility that currently houses 1900 Federal prisoners, and is staffed by 549 employees, half of whom are from the local California City area. The prison adds an annual payroll of over $20 million to the regional economy.

The Grand Jury report concluded with the statement, "The Committee recommends that the Warden continue to implement his stated philosophies in the operation of the prison. The Board of Supervisors of Kern County should encourage the implementation of privately operated prisons in the County of Kern as a means of saving the taxpayers thousands of dollars per year."