Correctional Services Corporation Announces Contract Award and Commencement of Operations at a 226 Bed Jail.

SARASOTA, Fla. -- Correctional Services Corporation (Nasdaq:CSCQ) today announced the contract award and commencement of operations at the 226-bed Tri-County Jail and Detention Center located in Pulaski County, Illinois. The contract term is for an initial period of six years with two 5-year renewal options. CSC, however, has the right to discontinue operations at any time after October 28, 2005.

The facility, is currently less than 50% occupied and houses mostly detainees from the United States Marshal Services (USMS) and the Department of Homeland Security, Immigration and Customs Enforcement (ICE). Regional county inmates make up the remainder of those housed in the jail. The company expects its strong relationship with USMS and ICE, combined with its operational expertise, will allow it to significantly improve the utilization rates of the facility over the next two quarters. Upon full occupancy the company expects annual revenues of approximately $4 million.

Commenting on the contract award, James F. Slattery, President and CEO stated, "This is a great opportunity for our Company. Our knowledge of and expertise in serving the U.S. Marshal Service and Bureau of Immigration and Customs Enforcement should allow us to improve the occupancy rates of the Jail in the near term. We are very pleased the Tri-County Civic Corporation has selected CSC for this opportunity in Pulaski County, Illinois."

Slattery further stated, "I believe our demonstrated commitment and success in providing top quality management of local detention facilities, while maximizing their utilization, has made CSC the ideal partner for local governments looking for a means to provide needed professional detention services in an environment that is operationally and financially beneficial to their communities."

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 2,200 juveniles in its care. In addition, the Company is a leading developer and operator of adult correctional facilities operating 15 facilities representing approximately 5,600 beds. On a combined basis, the Company provides services in 13 states, representing approximately 7,800 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; ability to obtain construction financing; ability to complete new construction projects within budgeted amounts. 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