Cornell Companies Praises State and Local Response at Baker California Community Corrections Facility.

Business Editors

HOUSTON--(BUSINESS WIRE)--Dec. 4, 2003

Company Invites State Officials to Conduct Independent Review of

Disturbance

Cornell Companies Inc. (NYSE:CRN) today praised state and local officials for their assistance during a disturbance at the Baker Community Corrections Facility on the evening of Dec. 2, 2003.

Gary Henman, senior vice president for Adult Secure Institutions, who immediately flew to Baker, Calif., from Cornell headquarters in Houston, acknowledged the outstanding teamwork that brought an end to a brawl between inmates at the 262-bed minimum-security facility.

"Cornell Companies places a high value on the partnerships we have with various state and local emergency response organizations. When the call for assistance was issued, representatives from the California Department of Corrections, California Highway Patrol, San Bernardino County Sheriff's Department and Fire Department, the Baker EMT Service, the Flight for Life Air Evacuation Service and local hospitals, all responded in a highly professional manner consistent with the emergency preparedness plans already in place," Henman said.

The incident occurred after the arrival of four new inmates who were transferred to the Baker Facility by the California Department of Corrections from another California facility. It appears that a small group of inmates had some type of grudge against one of the transferees and that fact was not immediately apparent to Baker officials. Approximately 40 inmates were involved in a melee in the yard. Sixteen inmates required medical treatment and two of those received serious, but not life threatening, injuries. No staff were injured, no property damage occurred and no one escaped from the facility. The entire incident was over in less than two hours.

"Media reports of the incident were grossly exaggerated," Henman said. There were no fires at the facility during the fight and the security of the facility was never threatened.

"It is unfortunate that in the rush to tell a story, the facts were distorted and members of the community were needlessly worried," he added.

Thomas R. Jenkins, Jr., president and chief operating officer, immediately launched an internal investigation of the incident. Jenkins said, "In order to understand exactly what happened, ensure a full public accounting of the incident and identify any possible changes in policy or procedure that are appropriate, Cornell will request the Office of the California Inspector General and the Office of the California Attorney General to conduct a separate, objective and independent review of the disturbance. We are committed to the operation of a quality program designed to fulfill our mission to help inmates transition successfully back into the community. We will cooperate fully with the independent review and look forward to identifying any improvement needs that are revealed."

Cornell Companies Inc. is a leading private provider of corrections, treatment and educational services outsourced by federal, state and local governmental agencies. Cornell provides a diversified portfolio of services for adults and juveniles, including incarceration and detention, transition from incarceration, drug and alcohol treatment programs, behavioral rehabilitation and treatment, and grades 3-12 alternative education in an environment of dignity and respect, emphasizing community safety and rehabilitation in support of public policy. Cornell (http://www.cornellcompanies.com ) has 70 facilities with a total service capacity of 16,514. Cornell's facilities are located in 14 states and the District of Columbia.