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EXHIBIT 99.1
PRISON REALTY COMPLETES MERGER WITH CORRECTIONS CORPORATION OF AMERICA;
COMBINED COMPANY TO OPERATE AS CORRECTIONS CORPORATION OF AMERICA
NASHVILLE, Tenn., Oct. 2 /PRNewswire/ -- Prison Realty Trust, Inc.
(NYSE: PZN) announced today that it completed its previously announced merger
with Corrections Corporation of America (CCA) as of October 1, 2000.
Shareholders of Prison Realty and CCA approved the merger at special meetings
held on September 12, 2000. The combined companies will operate under the
Corrections Corporation of America name, and its common stock will continue to
trade on the New York Stock Exchange under the ticker symbol "CXW." The
company's series A and B preferred stocks will trade under the symbols "CXW Pr
A" and "CXW Pr B", respectively.
"The merger of Prison Realty and CCA is the first step in streamlining
our corporate structure," stated John D. Ferguson, president and chief executive
officer of the newly combined company. "Shareholders overwhelmingly supported
the need to merge the entities and return our company to the corporate model
that was so successful in the past. The reconsolidation allows our management
team to improve operations, enhance customer service, and reduce costs."
Ferguson outlined key goals of management to maximize long-term
shareholder value:
* Increase occupancy through increased utilization of existing
facilities
* Improve operating margins
* Potential divestiture of non-core assets
* Strengthen capital structure
"Our primary focus will be on maintaining the high quality of our
correctional and detention facilities and building on the strong base we have
established with our customers," continued Ferguson. "We believe our combined
operations will be of greater value for our shareholders to value and easier to
manage as we go forward," concluded Ferguson.
About the Company
Corrections Corporation of America is the nation's largest provider of
detention and corrections services to governmental agencies. The company is the
industry leader in private sector corrections with approximately 68,000 beds in
75 facilities under contract or under development and ownership of 45 facilities
in the United States, Puerto Rico and the United Kingdom. The company's full
range of services include design, construction, ownership, renovation and
management of new or existing jails and prisons, as well as long distance inmate
transportation services.
Forward-Looking Statements
This press release contains statements that are forward-looking
statements as defined within the Private Securities Litigation Reform Act of
1995. These include statements regarding the merger of Prison Realty and CCA,
earning expectations, and integration of Prison Realty and CCA operations and
businesses. These forward-looking statements are subject to risks and
uncertainties that could cause actual results to differ materially from the
statements made. Other factors that could
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cause operating and financial results to differ are described in the company's
Form 10-K and Form 8-K, as well as in other documents filed with the SEC. Other
risks may be detailed from time to time in reports to be filed with the SEC. The
company does not undertake any obligation to publicly release the result of any
revisions to forward-looking statements that may be made to reflect events or
circumstances after the date hereof or to reflect the occurrence of
unanticipated events.
