CCA management has indicated that capacity at the new facility is
intended primarily for existing CCA customers, including approximately
750 inmates from the state of Alaska that are currently being held at
the Company's Florence Correctional Center, as well as inmates from
other jurisdictions that are being held at various other CCA
facilities.
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.

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A Notice to Proceed
serves as the last official procedure in the federal contract award
process. 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. The Company currently operates 64 facilities , including
39 company-owned facilities, with a total design capacity of
approximately 70,000 beds in 19 states and the District of Columbia.

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Business Editors

NASHVILLE, Tenn. This new facility will enable
us to better meet the needs of several of our customers requiring bed
space in Arizona and is reflective of CCA's commitment to assist our
customers in dealing with the ongoing tight supply of prison beds
nationwide. The Company also provides health care (including medical ,
dental and psychiatric services), food services and work and
recreational programs.

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During 2004 , the Company undertook expansion projects at six
facilities that will result in the addition of approximately 1,650
beds. In addition, the Company expects to complete the construction of
its Stewart County , Georgia facility in early 2005 which will add an
additional 1,500 beds to the Company's capacity . In
addition to providing the fundamental residential services relating to
inmates, the Company 's facilities offer a variety of rehabilitation
and educational programs, including basic education , religious
services, life skills and employment training and substance abuse
treatment. 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. These
forward-looking statements are subject to risks and uncertainties that
could cause actual results to differ materially from the statements
made.

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"

About the Company

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
three states. The Company currently operates 63 facilities, including
38 company-owned facilities, with a total design capacity of
approximately 69,000 beds in 19 states and the District of Columbia. The four-year contract, awarded as part of the
Criminal Alien Requirement-Phase 4 solicitation, also provides for
three (3) two-year renewal options.

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"The construction of our Red Rock Correctional Center is a
positive step for CCA," said President and CEO John Ferguson. In
addition to providing the fundamental residential services relating to
inmates, the Company's facilities offer a variety of rehabilitation
and educational programs , including basic education, religious
services, life skills and employment training and substance abuse
treatment.

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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.

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CCA's Red Rock Correctional Center is the first facility to
feature the Company's new facility design prototype, which has been
under development since 2003.

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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 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) the Company's ability to
obtain and maintain correctional facility management contracts,
including as the result of sufficient governmental appropriations and
as the result of inmate disturbances; (iv) increases in costs to
construct or 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 conditions and material shortages,
resulting in increased construction costs; and (v) general economic
and market conditions.

Business Editors

NASHVILLE, Tenn.

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These services are intended to reduce recidivism and to
prepare inmates for their successful re-entry into society upon their
release.

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The facility will be located on CCA-owned land adjacent to the
Company 's Eloy Detention Center, a 1,500-bed facility housing inmates
for the Federal Bureau of Prisons and the Bureau of Immigration and
Customs Enforcement.
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 . Marshals Service at the Northeast Ohio Correctional Center.
The Company 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.

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CCA has operated the Eloy facility since 1995.

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Corrections Corporation of America Commences Construction of New Correctional Facility in Arizona

The Company 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.
The Company specializes in owning, operating and managing prisons and
other correctional facilities and providing inmate residential and
prisoner transportation services for governmental agencies.

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The Company expects that the capacity being made available
at the Florence facility as a result of relocating Alaskan inmates
will be offered to federal customers currently occupying both the
Florence and Central Arizona facilities including the U.
The Company specializes in owning, operating and managing prisons and
other correctional facilities and providing inmate residential and
prisoner transportation services for governmental agencies. These services are intended to reduce recidivism and to
prepare inmates for their successful re-entry into society upon their
release. 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 .

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The Red Rock Correctional Center is the latest in a series of
capital projects undertaken by CCA to meet increasing customer
demands.----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.

incarcerated incarceration

Marshals
Service and the Bureau of Immigration and Customs Enforcement. These
forward-looking statements are subject to risks and uncertainties that
could cause actual results to differ materially from the statements
made.

Corrections Corporation of America Receives Final Notice to Proceed from Federal Bureau of Prisons

amend minimums

reintegrate felonies

S. 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) the Company 's ability to
obtain and maintain correctional facility management contracts,
including as the result of sufficient governmental appropriations and
as the result of inmate disturbances; (iv) increases in costs to
construct or 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 conditions and material shortages,
resulting in increased construction costs; and (v) general economic
and market conditions.

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The Company also provides health care (including medical,
dental and psychiatric services), food services and work and
recreational programs.

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"Our
Company is pursing a path of carefully planned growth, as dictated by
the needs of our public sector partners.

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----Corrections
Corporation of America (NYSE:CXW), the nation's largest provider of
corrections management services to government, has commenced
construction of the Red Rock Correctional Center, a new 1,596-bed,
medium-security correctional facility. The new facility will be owned
and managed by CCA and is expected to cost approximately $75 million.

About the Company

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
three states.

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.

incarceration mvfr

The project is currently slated for completion during the first
quarter of 2006. In addition to new design concepts, the
facility will employ state-of-the art technology, including CCA's new
IMS2 inmate management system, currently being deployed in CCA
facilities across the country.