Correctional Services Corporation Announces Cancellation of Solicitation and Contract in Augusta, Georgia.

Business Editors

SARASOTA, Fla.--(BUSINESS WIRE)--Feb. 19, 2004

Department of Juvenile Justice Closes Facility Prior to Company's

Commencement of Operations

Correctional Services Corporation (Nasdaq:CSCQ) announced today that as a result of a protest by the incumbent provider and their subsequent threat of litigation regarding the operation of the 140-bed Augusta Youth Detention Center (the "Augusta YDC"), the Georgia Department of Juvenile Justice (the "Department"), has decided to cancel its solicitation and the recently executed contract with the Company's wholly owned subsidiary, Youth Services International, Inc. ("YSI"). The Department, which chose YSI as a replacement to the incumbent operator, has closed the facility pending its potential re-opening.

The Department's decision was made prior to the commencement of operations by YSI at the Augusta YDC. The Company announced on January 24, 2004 that the Department had executed a 4-year contract with YSI to operate the Augusta YDC following a competitive procurement process. The Department had selected YSI for the contract award based on the superior technical and cost proposal submitted by YSI. YSI's bid for the contract was selected over the bid of the incumbent operator of the facility and other providers.

James Slattery, the Company's Chief Executive Officer commented on this development by stating: "Although we are extremely disappointed, we understand the department's decision. The litigation instituted by the incumbent operator would have been costly and time consuming and the State made the right choice to put the interest of the youth first."

Slattery continued: "We remain proud of the programming and services that we provide to the State of Georgia at the Paulding YDC, our state-wide Georgia aftercare program and the recently opened Crisp YDC. We will continue to provide quality services in these three programs and enhance our already strong relationship with DJJ despite their decision to close the facility and cancel the solicitation."

Through its Youth Services International subsidiary, the Company is the nation's leading private provider of juvenile programs for adjudicated youths with 20 facilities and 2,600 juveniles in its care. In addition, the Company is a leading developer and operator of adult correctional facilities operating 13 facilities representing approximately 4,800 beds. On a combined basis, the Company provides services in 15 states, representing approximately 7,100 beds including aftercare services.

SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995

Certain statements contained in this press release are not historical but are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. These include statements regarding the expectations, beliefs, intentions or strategies regarding the future. The Company intends that all forward-looking statements be subject to the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect the Company's views as of the date they are made with respect to future events and financial performance, but are subject to many uncertainties and risks which could cause the actual results of the Company to differ materially from any future results expressed or implied by such forward-looking statements. Examples of such uncertainties and risks include, but are not limited to: fluctuations in occupancy levels and labor costs; the ability to secure both new contracts and the renewal of existing contracts; the possibility of unforeseen costs relating to facility closings, the ability to achieve profitability and public resistance to privatization. Additional risk factors include those discussed in reports filed by the Company from time to time on Forms 10-K, 10-Q and 8-K. The Company does not undertake any obligation to update any forward-looking statements.