News Release

NASHVILLE, Tenn.--(BUSINESS WIRE)--Oct. 23, 2000--Corrections Corporation of America (NYSE:CXW), formerly Prison Realty Trust, today announced that the Federal Bureau of Prisons (FBOP) has given its approval to begin housing federal inmates at the Company's California City, California and Milan, New Mexico facilities.

The Notice to Proceed approval was issued on September 28 for California City, and inmates began arriving on October 2. The Notice to Proceed approval was issued on October 19 for the Cibola County Correctional Center in Milan, New Mexico, and inmates are expected to arrive on October 27. The three-year contracts contain the provision wherein the Company will be compensated for 95 percent of the designated bed space. The contracts, which were awarded in June 2000, provide for seven one-year renewal options.

Revenues for the management contract of the California facility for the three-year initial period and seven option years are expected to total approximately $530 million, not including award fees. Revenues for the management contract of the Cibola County facility for the three-year initial period and seven option years are expected to total approximately $230 million, not including award fees. In addition, the facilities are eligible to receive a bonus of up to 5 percent of annual revenues for superior performance.

"The Company has placed a high priority on receiving approval from the FBOP for the implementation of these two contracts, which represent two of the largest contract awards in CCA's history," said CCA President and CEO John Ferguson. "We're pleased that our start-up efforts and operations have met the standards and requirements of the FBOP and look forward to working in partnership with government in its efforts to address the growing number of criminal illegal aliens in its system."

CCA's California City Correctional Center is a 2,304-bed secure institution, and the Cibola County Correctional Center is a 1,012-bed secure institution.

About the Company

CCA and its affiliated companies are the nation's largest provider of detention and corrections services to governmental agencies. The company is the industry leader in private sector corrections with approximately 68,000 beds in 75 facilities under contract or under development and ownership of 45 facilities in the United States, Puerto Rico and the United Kingdom. CCA's full range of services includes design, construction, ownership, renovation and management of new or existing jails and prisons, as well as long distance inmate transportation services.

CCA has recently completed a series of previously announced restructuring transactions that included, among other things, the merger of the company with its primary tenant. In connection with the merger, the company, formerly known as Prison Realty Trust, Inc., changed its name to Corrections Corporation of America.

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 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 the company'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. The company 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.