Correctional Services Corporation Identifies Juvenile Facilities Closures.

SARASOTA, Fla.--(BUSINESS WIRE)--Aug. 25, 1999--

Correctional Services Corporation (Nasdaq NMS:CSCQ) announced today that it has identified the juvenile facilities operated by its Youth Services International, Inc. subsidiary that it will close as part of its strategic plan.

In addition, the company stated it will not seek to renew its contract with the Florida Department of Juvenile Justice for the management of the Pahokee Youth Development Center (350 beds) upon the expiration of the current management contract for that facility. The company's decisions were based on a number of factors including, recent and projected financial performance and consistency with the company's overall strategic plan.

Discussions have taken place with the user agencies for these facilities and appropriate notifications have been made. The facilities currently slated for closure are: The Pahokee Youth Development Center in Florida (350 beds), the Stuart Nunn Facility in Jefferson County, Texas (36 beds), the Camp Washington facility in Virginia (45 beds), and the Los Hermanos Ranch in Bryan, Texas (60 beds). The company closed its Stuart Nunn Facility in Texarkana at the end of June. All of the effected facilities were unprofitable in the 2nd quarter of 1999. The company expects all of the facilities to be closed by the end of the fourth quarter.

"We continue to have strong relationships with the agencies that use these facilities and are working closely with them to ensure needed services continue to be provided to their juveniles, to include the transfer to other CSC/YSI facilities," stated James F. Slattery CEO and President. "The evaluation of our operational and financial performance will continue as we endeavor to insure the highest quality services for our contracting agencies and a fair return for our shareholders."

Through its Youth Services International subsidiary, the Company is the nation's leading private provider of juvenile programs for adjudicated youths with 38 facilities and 4,909 juveniles in its care. In addition, Correctional Services Corporation is a leading developer and operator of adult correctional facilities operating 20 facilities representing approximately 7,300 beds. On a combined basis, the company provides services in 22 states and Puerto Rico, representing approximately 12,109 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: the integration of Youth Services International; occupancy levels; the renewal of contracts, the ability to secure new contracts; availability and cost of financing to redeem YSI's debentures and to expand our business; and public resistance to privatization. Additional risk factors include those discussed in the Form 10-K as well as those set forth in the Company's joint proxy statement/prospectus, dated March 4, 1999 and those set forth in reports filed by the Company from time to time on Forms 10-Q and 8-K. The Company does not undertake any obligation to update any forward-looking statements.