Correctional Properties Trust to Purchase Facility With 10.5% Cap Rate and 3% Escalator.

PALM BEACH GARDENS, Fla.--(BUSINESS WIRE)--Aug. 10, 1999--

Correctional Properties Trust (NYSE:CPV), a real estate investment trust (REIT), announced today that it expects to purchase the Jena Juvenile Justice Center.

The purchase price of the 276-bed facility located in Jena, La. will be approximately $15.2 million. Correctional Properties Trust will lease the property at an initial 10.5% cap rate with 3% annual escalators throughout the 10-year term of the lease.

Upon completion of this acquisition, Correctional Properties Trust will own 11 correctional facilities in eight states, representing 6,130 total beds.

Charles R. Jones, President and Chief Executive Officer stated: "We are pleased to be positioned to purchase this newly constructed facility at terms which reflect market conditions. It is operated by Wackenhut Corrections under a twenty-five year contract with the State of Louisiana, and we expect it to be a secure source of rental revenue for many years."

Correctional Properties Trust, based in Palm Beach Gardens, Fla., 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, and management of privatized correctional facilities.

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.