News Release

    NASHVILLE, Tenn., Jan. 26 /PRNewswire/ -- Prison Realty Corporation, a
Maryland real estate investment trust (the "Company") (NYSE: PZN PZN Pr A)
today announced the estimated tax characteristics of distributions declared by
the board of trustees of CCA Prison Realty Trust prior to December 31, 1998.
The Company is the surviving entity of the merger transaction of CCA Prison
Realty Trust and Corrections Corporation of America consummated on January 1,
1999. The amount of distribution referred to as return of capital is
considered by the Internal Revenue Service to be a return of invested capital
and should be applied to reduce the tax cost basis of the shares upon which
the distributions were paid.
    (Photo: http://www.newscom.com/cgi-bin/prnh/19981120/CHF004)
    This release is based on the preliminary results of work on the Company's
tax filings and is subject to correction or adjustment when the filings are
completed. The Company is releasing information at this time to aid those
required to distribute Form 1099s on the Company's distributions. No material
change in these classifications is expected. The classifications of the
distributions are as follows:

    Common Shares:

    Declaration Record  Payment Distribution   To be       Ordinary   Return
       Date      Date    Date    Per Share   Reported as   Taxable     of
                                                 1998      Income-    Capital-
                                             Distributions  1998       1998
    12/2/97   12/31/97    1/15/98    $0.425    25.2%(l)     73.79%     26.21%
     3/2/98    3/31/98    4/15/98    $0.425     100%        73.79%     26.21%
    6/26/98     7/1/98    7/15/98    $0.425     100%        73.79%     26.21%
    8/25/98    9/30/98   10/15/98    $0.480     100%        73.79%     26.21%
    12/9/98   12/21/98   12/31/98    $0.480     100%        73.79%     26.21%

    (1) Approximately 74.8% of this distribution was reported as a 1997
        distribution.

    8.0% Series A Cumulative Preferred Shares ("Preferred Shares"):

    Declaration Record  Payment Distribution  Ordinary    Return    To be
       Date      Date    Date    Per Share     Taxable     of     Reported as
                                               Income-   Capital-    1999
                                                1998      1998   Distributions
     3/2/98    3/31/98    4/15/98    $0.417     100%       0.0%      0.0%
    6/26/98     7/1/98    7/15/98    $0.500     100%       0.0%      0.0%
    8/25/98    9/30/98   10/15/98    $0.500     100%       0.0%      0.0%
    12/9/98   12/31/98    1/15/99    $0.500     0.0%       0.0%      100%

    The Company's preferred share distribution paid January 15, 1999 will be
treated as a 1999 distribution for federal income tax reporting purposes and
will be characterized for reporting purposes at the end of 1999.
    Prison Realty Corporation is based in Nashville, Tennessee and has elected
to qualify as a real estate investment trust under the Internal Revenue Code.
The Company's business is to build new and acquire existing correctional and
detention facilities to be leased to both private prison managers and
government entities.