America Service Group Inc. Chosen as Hot Growth Company by Business Week Magazine; Company Ranked Number 37 in Top 100 Companies Nashville.

Business Editors & Health/Medical Writers

NASHVILLE, Tenn.--(BW HealthWire)--May 23, 2000

America Service Group Inc. (NASDAQ:ASGR) today announced that it has been ranked number 37 in Business Week Magazine's list of "Hot Growth Companies." The list ranks the top 100 hot growth companies by their three-year results in sales growth, earnings growth and return on invested capital.

Standard & Poor's Institutional Market Services, a division of The McGraw-Hill Companies, which has computerized financial data on more than 10,000 publicly traded corporations, provided the pool of companies from which winners were selected. To qualify, a company had to have annual sales of more than $25 million and less than $500 million, a current market value greater than $25 million, a current stock price greater than $5, and be actively traded.

In commenting on the honor, Michael Catalano, president and chief executive officer of America Service Group, said, "We are very pleased to receive this national recognition. The Company's record of growth and achievement is a direct result of our successful acquisition program, the commitment of our management team, and the dedication of our clinical staff. We are grateful that our accomplishments continue to distinguish us in our industry and have positive implications for the shareholders of America Service Group."

In closing, Mr. Catalano added, "We view this prestigious ranking as validation of our growth strategy. Of course, we know that our company is achieving a certain measure of success, but it is reassuring when Business Week Magazine confirms that fact from a national perspective."

America Service Group Inc., based in Brentwood, Tennessee, is a leading provider of correctional healthcare services in the United States. America Service Group Inc., through its subsidiaries, contracts with 123 government agencies to provide a wide range of managed healthcare programs for approximately 165,000 patients. The Company employs over 4,600 medical, professional and administrative staff nationwide.

This press release may contain "forward-looking" statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. As such, they involve risk and uncertainty that actual results may differ materially from those projected in the forward-looking statements. A discussion of the important factors and assumptions regarding the statements and risks involved is contained in the Company's filings with the securities and Exchange Commission.