Correctional Properties Trust to Purchase 600-Bed New Mexico Prison.

PALM BEACH GARDENS, Fla.--(BUSINESS WIRE)--October 21, 1998-- Correctional Properties Trust (NYSE: CPV), a real estate investment trust (REIT), has reached an agreement to purchase the 600-bed Lea County Correctional Facility in Hobbs, New Mexico for approximately $26,000,000.

The acquisition of the recently completed facility, which is now filled to near capacity, is expected to close on or about October 30, 1998.

Charles R. Jones, president and chief executive officer of Correctional Properties Trust, said, "This acquisition gives us a presence in a new state, providing critically needed prison space for the State of New Mexico. We will have a ten year, triple-net lease with the operator of the facility, Wackenhut Corrections (NYSE: WHC), under which Correctional Properties Trust will take no occupancy risk."

"In addition," said Mr. Jones, "this property is already being expanded by an additional 600 beds which are expected to be completed by the end of the fourth quarter, 1998. After completion and occupancy of the 600-bed expansion project, Correctional Properties Trust expects to acquire the additional beds for approximately $22,000,000, resulting in a combined cost for the entire 1,200-bed facility of approximately $48,000,000."

Correctional Properties Trust, based in Palm Beach Gardens, Florida, was formed in February 1998, to capitalize on the growing trend toward privatization in the corrections industry. Correctional Properties Trust is dedicated to ownership of correctional facilities under long term, triple net leases without occupancy risk or development risk. CPV has a strategic relationship with Wackenhut Corrections Corporation (NYSE: WHC), an industry leader in the design, development, construction, financing and management of privatized correctional facilities.

After this acquisition, Correctional Properties will be the owner and lessor of nine correctional facilities in six states, with an aggregate design capacity of 3,754 beds, all of which are leased.

This press release contains forward-looking statements regarding future events and future performance of the Company that involves risk and uncertainties that could materially affect actual results. Investors should refer to documents that the Company files from time-to-time with the Securities and Exchange Commission for a description of certain factors that could cause actual results to vary from current expectations and forward-looking statements contained in this press release. Such filings include, with limitation; the Company's Form 10-K, Forms 10-Q, Registration Statement on Form S-11, and Form 8-K reports.