Avalon Correctional Services Hires Industry Veteran James Saffle as President; Industry Leader Brings More than 28 Years Experience in Corrections.

Business Editors

OKLAHOMA CITY--(BUSINESS WIRE)--June 21, 2001

Avalon Correctional Services, Inc. (Nasdaq: CITY):

James Saffle has joined the Avalon management team as President, following his retirement as Director of the Oklahoma Department of Corrections.

Mr. Saffle will direct Avalon's national growth by continuing to focus on community corrections markets, as well as target additional states with Avalon's innovative community corrections programs.

"This is an ideal time for many states to take a closer look at community corrections and alternative programming for the increasing inmate population. Daily corrections operating costs continue to spiral upward, putting increased financial pressures on many states," said Saffle.

Mr. Saffle's distinguished career began with the U.S. Army Military Police Corps in 1972. His career with the Oklahoma Department of Corrections began in 1975, at the Ouachita Correctional Center in Hodgen, Oklahoma, as a Corrections Officer I. He served in several capacities, including sergeant, lieutenant, training and safety officer, chief of security, and deputy warden.

Mr. Saffle was promoted to deputy warden at the Oklahoma State Penitentiary in McAlester in March 1987. During the same year he was promoted to Warden at the Oklahoma State Penitentiary and served as Warden until December 1991 when he was appointed Southeastern Regional Director.

Mr. Saffle served as Interim Director in 1996 and was appointed as the Director of The Oklahoma Department of Corrections by the Oklahoma Board of Corrections on March 5, 1997. Mr. Saffle obtained his Bachelor of Science in Criminal Justice and Psychology at Northeastern Oklahoma State University, and his Masters of Science degree in Human Resources with emphasis in Criminal Justice from East Central State University.

"James Saffle's recognized leadership and experience in leading the Oklahoma Department of Corrections through tremendous growth and change makes him a great fit for Avalon," said Donald E. Smith, CEO. "James is heading in a new direction, while still pursuing the same goals by helping to build Avalon into a nationally recognized community corrections provider."

Avalon Correctional Services, Inc. is a leading developer and manager of privatized community correctional facilities and alternative correctional programming in the United States. Avalon currently has a total offender capacity of 2,060 beds in Oklahoma, Colorado and Texas, in addition to alternative programming for approximately 1,000 offenders. For more information about Avalon, contact our web site at www.avaloncorrections.com or call 1-800/919-9113.