Correctional Services Corporation Finalizes 5 Year Extension for Operating Newton County Correctional Center.

Business Editors

SARASOTA, Fla.--(BUSINESS WIRE)--March 15, 2002

Refinancing of Facility to Provide Enhanced Profitability

Correctional Services Corporation (Nasdaq:CSCQ) today announced it has entered into an agreement with Newton County to extend its operating the 879 bed Newton County Correctional Center. The Company has been operating the facility since 1998. The facility, located in Newton, Texas, currently houses inmates from the State of Texas and the Immigration and Naturalization Service.

The new agreement was entered into as part of a refinancing transaction for the facility. The facility, owned by the Newton County Public Facility Corporation, recently completed an offering of non-recourse lease revenue bonds. Correctional Services Corporation has no liability in relation to the bonds or its related lease arrangement.

The refinancing transaction will reduce the facility's monthly debt service requirements by approximately 37%. The Company, as operator, will realize a portion of this benefit through increased revenue at all population levels. This will have a direct bottom line impact.

Commenting on the new contract James F. Slattery CEO and President stated: "This transaction brings substantial benefits to all involved. The County will realize additional monthly income for its citizens and we will generate increased revenue. Operating in partnership, this transaction has reinforced our long term commitment to the facility. We look forward to continuing to provide high quality services to those in our care."

Through its Youth Services International subsidiary, the Company is the nation's leading private provider of juvenile programs for adjudicated youths with 24 facilities and 3,800 juveniles in its care. In addition, the Company is a leading developer and operator of adult correctional facilities operating 11 facilities representing approximately 4,300 beds. On a combined basis, the Company provides services in 14 states and Puerto Rico, representing approximately 8,100 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 and Section 21E of the Securities Exchange Act of 1934. 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 ability to successfully complete the asset sales and pay down debt, 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 10K, 10-Q and 8-K. The Company does not undertake any obligation to update any forward-looking statements.