May 25, 2005

CCA Receives Final Notice to Proceed from Federal Bureau of Prisons

May 25, 2005
NASHVILLE, TN., May 26, 2005 -- Corrections Corporation of America ("CCA") (NYSE: CXW), the nation's largest provider of corrections management services to government, received on May 25, 2005, a Notice to Proceed from the Federal Bureau of Prisons ("BOP") to begin performance of services on June 1, 2005, in regard to CCA's contract with the BOP to manage inmates at the Company's 2,016-bed Northeast Ohio Correctional Center. A Notice to Proceed serves as the last official procedure in the federal contract award process.

On December 23, 2004, the BOP awarded CCA the contract to manage an estimated 1,195 low-security federal inmates at the Northeast Ohio facility located in Youngstown, Ohio, with a provision to manage up to 1,374 federal inmates. The four-year contract, awarded as part of the Criminal Alien Requirement-Phase 4 solicitation, also provides for three (3) two-year renewal options. The terms of the contract provide for a 50% guaranteed rate of occupancy for 90 days following the commencement of services, and a 90% guaranteed rate of occupancy thereafter. Under provisions of the award, CCA could earn revenues of up to approximately $129 million in the aggregate during the first four years of the contract.

In addition to the inmates to be housed on behalf of the BOP, the Company currently houses approximately 500 prisoners on behalf of the U.S. Marshals Service at the Northeast Ohio Correctional Center.