The GEO Group, Inc. Announces Contract Award for the Housing of Criminal Aliens at the 3,763-Bed Reeves County Detention Complex Under CAR 6.

BOCA RATON, Fla. -- The GEO Group, Inc. (NYSE:GEO) ("GEO") announced today that Reeves County, Texas (the "County") has been awarded a contract of up to 10 years by the Federal Bureau of Prisons ("BOP") for the housing of up to 2,407 criminal aliens at the Reeves County Detention Complex I & II ("RCDC I & II") under the BOP's CAR 6 procurement which will replace the expiring Inter-Governmental Agreement between the County and the BOP.

The County currently houses approximately 2,200 BOP inmates in RCDC I & II and will house up to 1,356 BOP inmates in RCDC III under the BOP's recent CAR 5 contract. To accommodate the increase in population under the new CAR 6 contract, the County will build a new housing unit along with special housing beds and a new medical unit using bond financing. Following the completion of construction in November 2007, the entire Complex's (RCDC I, II & III) capacity will increase to 3,763 beds. GEO believes that the Reeves County Detention Complex (the "Complex") is the largest detention/correctional facility under private management in the world. GEO manages the Complex with a small management team under management agreements with the County, while the majority of the employees remain on the County payroll.

The contract will have an initial base term of four years effective February 1, 2007 with three two-year renewal option periods. Under the contract, the County will receive fixed monthly payments for up to 1,884 inmates and per diem payments for each additional inmate thereafter. The contract could generate approximately $490.0 million in operating revenues for the County over the entire ten-year period at or near full capacity. Under the new contract with the BOP, all payments will be made directly to the County and GEO will only report its management contract fee and management staff expense reimbursement as contract revenue.

George C. Zoley, Chairman and Chief Executive Officer of GEO, said, "We are very pleased that Reeves County has received this important contract award from the Federal Bureau of Prisons. We played an active role in assisting the County with the submission of this proposal, and we look forward to strengthening our partnership with Reeves County, its community, and the Federal Bureau of Prisons.

"This new long term contract is indicative of a continuing trend of lengthy contracts being awarded by the Federal Bureau of Prisons, U.S. Immigration and Customs Enforcement, and the U.S. Marshals Service providing for increased revenue certainty for our Company and a continuity of services for our Federal clients. Approximately 40 percent of our present revenues are generated through similar lengthy contracts involving the three Federal detention agencies and GEO Care clients," Zoley added.

The GEO Group, Inc. ("GEO") is a world leader in the delivery of correctional, detention, and residential treatment services to federal, state, and local government agencies around the globe. GEO offers a turnkey approach that includes design, construction, financing, and operations. GEO represents government clients in the United States, Australia, South Africa, Canada, and the United Kingdom. GEO's worldwide operations include 62 correctional and residential treatment facilities with a total design capacity of approximately 54,000 beds.

This press release contains forward-looking statements regarding future events and future performance of GEO that involve risks and uncertainties that could materially affect actual results, including statements regarding estimated earnings, revenues and costs and our ability to maintain growth and strengthen contract relationships. Factors that could cause actual results to vary from current expectations and forward-looking statements contained in this press release include, but are not limited to: (1) GEO's ability to successfully pursue further growth and continue to enhance shareholder value; (2) GEO's ability to access the capital markets in the future on satisfactory terms or at all; (3) risks associated with GEO's ability to control operating costs associated with contract start-ups; (4) GEO's ability to timely open facilities as planned, profitably manage such facilities and successfully integrate such facilities into GEO's operations without substantial costs; (5) GEO's ability to win management contracts for which it has submitted proposals and to retain existing management contracts; (6) GEO's ability to obtain future financing on acceptable terms; (7) GEO's ability to sustain company-wide occupancy rates at its facilities; and (8) other factors contained in GEO's Securities and Exchange Commission filings, including the forms 10-K, 10-Q and 8-K reports.