News Release

    NASHVILLE, Tenn., May 5 /PRNewswire/ -- Prison Realty Corporation ("Prison
Realty" or the "Company") (NYSE: PZN), a Maryland corporation and the
successor entity of the merger between CCA Prison Realty Trust and Corrections
Corporation of America consummated January 1, 1999, today announced first
quarter 1999 results.  Funds from operations (FFO) of $68.4 million, or $0.63
per diluted share were earned on revenues of $72.0 million for the quarter
ended March 31, 1999.
    Chairman and CEO Doctor R. Crants commented on results as follows: "We are
pleased to announce our first quarter of operations following our merger at a
level in line with expectations.  In the few short months since January 1,
1999, we have been busy exploiting the advantages of our new structure to
execute our business plan.  We have announced 7,000 beds of new construction
and acquisition and we have raised over $140 million in equity.  We are
prepared to continue our aggressive development of prison facilities to meet
the burgeoning demands of government.  Our size and capital structure
substantially enhance our competitive position and will allow us to optimize
shareholder value."
    Prison Realty's business is the ownership of correctional and detention
facilities.  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
50 correctional and detention facilities in 17 states, the District of
Columbia and the United Kingdom having a total design capacity in excess of
49,000 beds, of which eleven new facilities are under construction.  Prison
Realty Corporation is based in Nashville, Tennessee and plans to qualify as a
real estate investment trust under the Internal Revenue Code.
    A private prison management company and two other private management
companies formed in conjunction with the merger now operate under the name of
Corrections Corporation of America to provide management services to
governments under contracts for 81 correctional and detention facilities with
a total design capacity of 71,851 beds, of which 67 facilities with a total
design capacity of 50,005 beds are in operation.
    This press release contains forward-looking statements that involve
various risks and uncertainties.  Actual results could differ materially from
those contained in these forward-looking statements due to certain factors.
These and other risks and uncertainties are detailed in the Company's reports
filed with the SEC.

                          PRISON REALTY CORPORATION
                       Consolidated Statement of Income
                  For the Three Months Ended March 31, 1999
        (Unaudited and amounts in thousands, except per share amounts)

                                              1999

    REVENUES
      Rental revenue                      $ 63,640
      Interest income                        6,214
      Licensing fees                         2,132
                                            71,986

    EXPENSES:
      General and administrative               882
      Depreciation and amortization          9,917
       Interest expense                      8,273
                                            19,072

    OPERATING INCOME                        52,914

    Equity in earnings of subsidiaries
     and amortization of deferred gains      7,681

    INCOME BEFORE INCOME TAXES              60,595

    Write off of deferred tax asset         83,200 (a)

    NET LOSS                               (22,605)

    Dividends to preferred shareholders     (2,150)

    NET LOSS AVAILABLE FOR COMMON SHARES  $(24,755)

    NET LOSS AVAILABLE PER COMMON SHARE:
      Basic                               $  (0.23)
      Diluted                             $  (0.23)

    WEIGHTED AVERAGE COMMON SHARES
      OUTSTANDING, BASIC                   107,282

    WEIGHTED AVERAGE COMMON SHARES
      OUTSTANDING, DILUTED                 107,282

    FUNDS FROM OPERATIONS:
      Net Loss Available for
       Common Shares                      $(24,755)
      Plus Real Estate Depreciation          9,917
      Add back non-recurring items:
        Write off of deferred tax asset     83,200

                                          $ 68,362

    FUNDS FROM OPERATIONS PER COMMON SHARE:
      Basic                               $   0.64
      Diluted                             $   0.63

    WEIGHTED AVERAGE COMMON SHARES
      OUTSTANDING, BASIC                   107,282

    WEIGHTED AVERAGE COMMON SHARES
     OUTSTANDING, DILUTED                  110,341

    (a) - One-time charge related to change of Company tax status
          from C-corporation to REIT.


                          PRISON REALTY CORPORATION
                          Consolidated Balance Sheet
                                March 31, 1999
                            (Amounts in thousands)

                                          (unaudited)
                                            March 31,
                                                1999
    ASSETS

    Current Assets:
      Cash and cash equivalents           $   11,324
      Restricted cash                         91,581
      Accounts receivable, net of allowances   1,314
      Prepaid expenses                           645
      Other current assets                    15,496
        Total current assets                 120,360

    Property and Equipment, Net            2,011,827

    Other Assets:
      Notes receivable                       138,549
      Investments in affiliates and others   132,703
      Investments in direct financing leases  72,881
      Other                                   18,125
        TOTAL ASSETS                      $2,494,445


    LIABILITIES AND STOCKHOLDERS' EQUITY

    Current Liabilities:
      Accounts payable                    $   94,271
      Income taxes payable                     8,197
      Other accrued expenses                  13,385
      Distributions payable                  221,505
      Current portion of long-term debt        3,203
      Current portion of deferred gains
       on sales of contracts                  10,677
        Total current liabilities            351,238

    Long-Term Liabilities:
      Long-term debt, net of current portion 687,577
      Deferred tax liability                  32,000
      Deferred gains on sales of contracts,
       net of current portion                102,212
            TOTAL LIABILITIES              1,173,027

    Commitments and Contingencies                 --

    Stockholders' Equity:
      Preferred stock, $.01 par value;
       10,000 shares authorized;
       4,300 outstanding,                         43
      Common stock, $.01 par value;
       300,000 shares authorized,
       114,391 shares issued and outstanding   1,144
      Additional paid-in capital           1,323,959
      Cumulative net income                   60,595
      Accumulated distributions              (64,323)
        TOTAL STOCKHOLDERS' EQUITY         1,321,418
        TOTAL LIABILITIES AND
          STOCKHOLDERS' EQUITY            $2,494,445