Corrections Corporation of America Enters into Aggreement with Colorado for Maximum Security Inmates to Be Housed at CCA's Tallahatchie County Correctional Facility.

Business Editors

NASHVILLE, Tenn.--(BUSINESS WIRE)--June 1, 2004

Corrections Corporation of America (CCA) (NYSE:CXW), the nation's largest provider of corrections management services to government agencies, announced today that it has entered into an agreement to manage a population of up to 128 Colorado maximum-security inmates at the Company's owned and operated Tallahatchie County Correctional Facility, located in Tutwiler, Mississippi. There currently are approximately 35 Colorado inmates at the Tallahatchie facility, which is expected to reach 128 over the next several weeks.

The terms of the contract include a one-year agreement effective through June 30, 2005, with four one-year renewal options. CCA has a long-standing partnership with Colorado and presently owns and operates four correctional institutions in Colorado and manages nearly 3,000 Colorado inmates in those facilities. The new agreement is not expected to have a material impact on CCA's previous financial guidance.

The 1,104-bed Tallahatchie prison presently houses approximately 310 inmates from Hawaii along with approximately 35 local county inmates. An additional population of approximately 115 Hawaiian inmates is expected at the facility by June 30, 2004. The Company is in discussions with a number of additional potential customers to utilize the remaining capacity at the Tallahatchie facility.

About CCA

CCA is the nation's largest owner and operator of privatized correctional and detention facilities and one of the largest prison operators in the United States, behind only the federal government and four states. CCA currently operates 65 facilities, including 38 company-owned facilities, with a total design capacity of approximately 66,000 beds in 20 states and the District of Columbia. CCA specializes in owning, operating and managing prisons and other correctional facilities and providing inmate residential and prisoner transportation services for governmental agencies. In addition to providing the fundamental residential services relating to inmates, our facilities offer a variety of rehabilitation and educational programs, including basic education, religious services, life skills and employment training and substance abuse treatment. These services are intended to reduce recidivism and to prepare inmates for their successful re-entry into society upon their release. We also provide health care (including medical, dental and psychiatric services), food services and work and recreational programs.

Forward-Looking Statements

This press release contains statements as to CCA's beliefs and expectations of the outcome of future events that are forward-looking statements as defined within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from the statements made. These include, but are not limited to, the risks and uncertainties associated with: (i) fluctuations in our operating results because of, among other things, changes in occupancy levels, competition, increases in cost of operations, fluctuations in interest rates and risks of operations; (ii) changes in the privatization of the corrections and detention industry, the public acceptance of our services and the timing of the opening of and demand for new prison facilities; (iii) increases in costs to expand correctional facilities that exceed original estimates, or the inability to complete such projects on schedule as a result of various factors, many of which are beyond our control, such as weather, labor conditions and material shortages, resulting in increased construction costs; and (iv) general economic and market conditions. Other factors that could cause operating and financial results to differ are described in the filings made from time to time by CCA with the Securities and Exchange Commission.

CCA takes no responsibility for updating the information contained in this press release following the date hereof to reflect events or circumstances occurring after the date hereof or the occurrence of unanticipated events or for any changes or modifications made to this press release or the information contained herein by any third-parties, including, but not limited to, any wire or internet services.