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EXHIBIT 99.2
Company Press Release
CORRECTIONS CORPORATION OF AMERICA
CONTRACTS WITH BOP FOR 3,316 BEDS
NASHVILLE, Tenn., June 12 /PRNewswire/ -- Prison Realty Trust, Inc.
(NYSE: PZN) announced today that its primary tenant Corrections Corporation of
America has contracted with the Federal Bureau of Prisons (FBOP) to house 3,316
federal detainees at the company's California City, California and Cibola, New
Mexico facilities.
The three-year contracts, which also provide for seven, one-year renewal
options, include a 95 percent guaranteed occupancy rate. Revenues for the
contracts are expected to begin early in the fourth quarter of 2000.
Revenues for the management contract of the California facility for the
three-year initial period and seven option years are expected to total
approximately $530 million, not including award fees. Revenues for the
management contract of the Cibola County facility for the three-year initial
period and seven option years are expected to total approximately $230 million,
not including award fees. In addition, the facilities are eligible to receive a
bonus of up to 5 percent of annual revenues for superior performance.
"These contract awards are welcome news for the company as they
represent two of the largest contract awards in CCA's history," said Prison
Realty Trust Chairman Thomas W. Beasley. "We're especially pleased that all of
the beds we submitted for consideration by the FBOP were selected. We also are
proud to have the opportunity to work in partnership with the FBOP in their
efforts to address the growing number of criminal illegal aliens in their
system."
The contract awards were made as part of the FBOP's recent procurement
process to add up to 7,500 beds to its system in the southwestern part of the
U.S., specifically Arizona, California and New Mexico.
CCA's California City Correctional Center is a 2,304-bed secure
institution, and the Cibola County Correctional Center in Milan, New Mexico is
a 1,012-bed secure facility.
Prison Realty's business is the development and ownership of
correctional and detention facilities. Headquartered in Nashville, Tenn., the
company provides financing, design, construction and renovation of new and
existing jails and prisons that it leases to both private and governmental
managers. Prison Realty currently owns or is in the process of developing 50
correctional and detention facilities in 17 states, the District of Columbia
and the United Kingdom.
The companies doing business as Corrections Corporation of America
provide detention and corrections services to governmental agencies. The
company is the industry leader in private sector corrections with approximately
69,000 beds in 77 facilities under contract or under development in the United
States, Puerto Rico, Australia and the United Kingdom. CCA's full range of
services includes design, construction, renovation and management of new or
existing jails and prisons, as well as long-distance inmate transportation
services.
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This news release contains forward-looking statements within the
meaning of Section 27 of the Securities Act of 1933, as amended, and Section 21
(e) of the Security Exchange Act of 1934, as amended. Actual results could
differ materially from those set forth in the forward-looking statements.
Institutional Investor Contact: Alex Singal (615)263-3005
Retail Investor Contact: Kerry Reitz (615)263-0200
Media Contact: Susan Hart (615)263-3104
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