News Release

    NASHVILLE, Tenn., Aug. 15 /PRNewswire/ --
Prison Realty Trust, Inc. (NYSE: PZN) announced today results for the second
quarter ended June 30, 2000.  Prison Realty reported revenues of $17.5 million
and a net loss available to common shareholders of $74.3 million, or
($0.63) per common share for the quarter.
    Prison Realty has proposed a comprehensive restructuring, including the
merger of Prison Realty with CCA and its operation as a taxable subchapter C
corporation rather than as a REIT beginning with its 2000 taxable year.
    The company's revenues were reduced for the second quarter of 2000 to
reflect a reserve of $72.6 million to offset lease revenues from Prison
Realty's primary tenant, Corrections Corporation of America (CCA), due to the
uncertainty regarding the collectibility of the payments.
    The results for the second quarter of 2000 include $4.4 million in
write-offs of amounts under lease agreements related to tenant incentive fees
due CCA on two facilities opened in 2000, $28.1 million reserved for merger
transaction fees related to the termination of previously announced
transactions, and $7.5 million in foreign currency transaction losses as a
result of the strong U.S. dollar against the UK pound arising from receivables
related to the Company's HMP Forrest Bank facility in Salford, England.
    CCA, Prison Realty's primary tenant, had second quarter revenues of
$142.4 million and a net loss of $76.8 million.  The loss includes gross lease
expenses before amortization of deferred credits of $81.6 million related to
leases with Prison Realty. In addition to CCA, the two service companies had
combined revenues of $72.9 million and combined net income before taxes of
$2.0 million for the quarter.  Prison Realty's economic interest in the two
service companies is reported as equity in earnings of subsidiaries.
    Systemwide, the three companies doing business as CCA had 64,260 prison
and jail beds in operation at the end of the second quarter of 2000, versus
50,513 beds at June 30, 1999.  Occupancy for the quarter was 84.8% this year
compared with 92.7% last year, and compensated mandays for the quarter rose
1.9% to 4.6 million from 4.1 million in the second quarter of 1999.

    About the Company
    Prison Realty's business is the development and ownership of correctional
and detention facilities.  Headquartered in Nashville, Tennessee, 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 or is in the process of developing
50 correctional and detention facilities in 17 states, the District of
Columbia, and the United Kingdom.
    The companies operating under the "Corrections Corporation of America"
name provide detention and corrections services to governmental agencies. The
companies are the industry leader in private sector corrections with
approximately 70,000 beds in 77 facilities under contract or under development
in the United States, Puerto Rico, Australia, and the United Kingdom.  The
companies' full range of services includes design, construction, renovation
and management of new or existing jails and prisons, as well as long distance
inmate transportation services.
    Prison Realty has previously announced a proposed restructuring, pursuant
to which, among other things, Prison Realty will merge with Corrections
Corporation of America, its primary tenant, and elect to be taxed as a
subchapter C corporation commencing with its 2000 taxable year. Prison Realty
is seeking stockholder approval of the restructuring at a Special Meeting
scheduled for September 12, 2000. Pending stockholder approval, the companies
intend to complete the restructuring on or before September 15, 2000.  Prison
Realty has filed definitive proxy materials with respect to the restructuring
with the U.S. Securities and Exchange Commission and has commenced delivery of
such materials to its stockholders.  Stockholders are urged to read these
materials carefully as they include important information with respect to the
companies and the proposed restructuring.

    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
include statements regarding changes in management, accounting changes related
to a change from federal taxation as a REIT to a subchapter C corporation,
merger plan between Prison Realty and CCA, earning expectations, and
integration of Prison Realty and CCA operations and businesses.  These
forward-looking statements are subject to risks and uncertainties that could
cause actual results to differ materially from the statements made.  Other
factors that could cause operating and financial results to differ are
described in Prison Realty's Form 10-K and Form 8-K, as well as in other
documents filed with the SEC.  Other risks may be detailed from time to time
in reports to be filed with the SEC.  Prison Realty 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.

                  PRISON REALTY TRUST, INC. AND SUBSIDIARIES
               CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
          FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2000 AND 1999
        (Unaudited and amounts in thousands, except per share amounts)

                     THREE MONTHS  THREE MONTHS    SIX MONTHS     SIX MONTHS
                            ENDED         ENDED         ENDED          ENDED
                          JUNE 30,      JUNE 30,      JUNE 30,       JUNE 30,
                             2000          1999          2000           1999
    REVENUES:
    Rental revenues       $11,466       $65,828       $22,926       $129,468
    Interest income         3,363         5,827         6,675         12,041
    Licensing fees          2,666         2,186         5,242          4,318
                           17,495        73,841        34,843        145,827

    EXPENSES:
    Depreciation and
      amortization         13,407        10,502        26,331         20,419
    General and
      administrative        4,051         1,725         6,594          2,607
    Write-off of amounts
      under lease
      arrangements          4,416            --         8,416            --
                           21,874        12,227        41,341        23,026

    OPERATING INCOME
      (LOSS)               (4,379)       61,614        (6,498)      122,801
    Equity in earnings
      of subsidiaries
      and amortization
      of deferred gains     2,874         7,476         8,987        15,157
    Interest expense      (34,630)       (7,036)      (66,424)      (15,309)
    Merger transaction
      fees                (28,146)           --       (28,146)           --
    Foreign currency
      transaction loss     (7,530)           --        (7,530)           --
    Loss on disposal
      of assets              (301)       (1,631)         (301)       (1,631)

    INCOME (LOSS) BEFORE
      INCOME TAXES        (72,112)       60,423       (99,912)      121,018
    Provision for change
      in tax status            --            --            --        83,200

    NET INCOME (LOSS)     (72,112)       60,423       (99,912)       37,818
    DIVIDENDS TO
      PREFERRED
      SHAREHOLDERS         (2,150)       (2,150)       (4,300)       (4,300)

    NET INCOME (LOSS)
      AVAILABLE TO COMMON
      SHAREHOLDERS       $(74,262)     $ 58,273     $(104,212)      $33,518

    NET INCOME LOSS AVAILABLE
      TO COMMON SHAREHOLDERS
      PER COMMON SHARE:
       BASIC               $(0.63)        $0.50        $(0.88)        $0.30

       DILUTED             $(0.63)        $0.50        $(0.88)        $0.30

    WEIGHTED AVERAGE COMMON
      SHARES OUTSTANDING,
      BASIC               118,409       116,421       118,402       111,871

    WEIGHTED AVERAGE COMMON
      SHARES OUTSTANDING,
      DILUTED             118,409       117,763       118,402       112,687

                  PRISON REALTY TRUST, INC. AND SUBSIDIARIES
                    CONDENSED CONSOLIDATED BALANCE SHEETS
        (UNAUDITED AND AMOUNTS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)

                                        JUNE 30,   DECEMBER 31,
                                           2000           1999
    ASSETS
    Real estate properties:
    Correctional and detention
       facilities                    $2,239,087     $2,258,281
    Less accumulated depreciation       (76,104)       (49,785)

        Net real estate properties    2,162,983      2,208,496

    Cash and cash equivalents            18,366         84,493
    Restricted cash                       9,416         24,409
    Note receivable from CCA            137,000        137,000
    Investments in affiliates           115,194        118,232
    Investments in direct
       financing leases                 154,251         74,059
    Receivable from CCA                  17,819         28,608
    Other assets                         61,307         60,625

        Total assets                 $2,676,336     $2,735,922

    LIABILITIES AND STOCKHOLDERS' EQUITY
    LIABILITIES:
    Distributions payable           $     2,150     $    2,150
    Bank credit facility                965,234        928,234
    Senior notes payable                100,000        100,000
    Convertible subordinated notes
       and other debt                    72,730         70,757
    Accounts payable and
       accrued expenses                  80,886         70,911
    Income taxes payable                  6,245          5,476
    Deferred gains on sales
       of contracts                     100,707        106,045
    Other liabilities                    32,000         32,000

        Total liabilities             1,359,952      1,315,573

    COMMITMENTS AND CONTINGENCIES

    STOCKHOLDERS' EQUITY:
    Preferred stock, $.01 (one cent)
      par value; 20,000 shares authorized;
      4,300 shares issued and outstanding;
      stated at liquidation preference
      of $25 (twenty-five dollars)
      per share                          107,500       107,500
    Common stock, $.01 (one cent) par value;
      300,000 shares authorized;
      118,420 and 118,406 shares issued,
      respectively; 118,408 and
      118,394 shares outstanding,
      respectively                         1,184         1,184
    Treasury stock, 12 shares, at cost      (242)         (242)
    Additional paid-in capital         1,347,474     1,347,227
    Cumulative net income (loss)         (70,088)       29,824
    Accumulated distributions            (69,444)      (65,144)

        Total stockholders' equity     1,316,384     1,420,349

        Total liabilities and
           stockholders' equity       $2,676,336    $2,735,922