Corrections Corporation of America Intends to Expand the Florence Correctional Center and Announces New Contract and Expansion of the Leavenworth Detention Facility.

Business Editors

NASHVILLE, Tenn.--(BUSINESS WIRE)--Jan. 9, 2004

Corrections Corporation of America ("CCA") (NYSE:CXW) today announced its intention to expand the Florence Correctional Center located in Florence, Arizona by 216 beds. The anticipated cost of the expansion is approximately $6.2 million and is estimated to be completed during the first quarter of 2005. Upon completion of the expansion, the Florence Correctional Center will have a total design capacity of 1,816 beds. The Florence facility, which houses federal inmates as well as inmates from Hawaii and Alaska, is currently operating at more than 100 percent occupancy. The expansion is being undertaken in anticipation of increasing demand from each of these customers.

The Company also announced the signing of a new contract with United States Marshals Service ("USMS") to manage up to 800 inmates at its Leavenworth Detention Center located in Leavenworth, Kansas. To fulfill the requirements of this contract, CCA will expand the Leavenworth Detention Facility by 256 beds from its current design capacity of 483 beds, increasing its total beds to 739 beds. The USMS currently utilizes the CCA owned Leavenworth Detention Facility, which is currently operating at more than 100 percent occupancy. The new contract provides a guarantee that the USMS will utilize 400 beds. The anticipated cost to expand the Leavenworth facility is approximately $10.4 million, with completion estimated to occur during the fourth quarter of 2004.

About CCA

Corrections Corporation of America 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 59 facilities, including 38 company-owned facilities, with a total design capacity of approximately 59,000 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, CCA 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. CCA also provides 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 the Company'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 the Company's 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 the Company's 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 the Company's control, such as weather, labor condition 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 the Company 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.