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Exhibit 99.1
Contacts:
Institutional Investor: Alex Singal (615) 263-3005
Media: Susan Hart (615) 263-3104
DOCTOR R. CRANTS TERMINATED AS CEO
OF PRISON REALTY AND CORRECTIONS CORPORATION OF AMERICA
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THOMAS W. BEASLEY NAMED INTERIM CEO
Nashville, Tenn. -- (July 31, 2000) -- Prison Realty Trust, Inc. (NYSE: PZN)
announced today that Doctor R. Crants was terminated as Chief Executive Officer
of Prison Realty Trust, Inc. and Corrections Corporation of America (CCA).
Thomas W. Beasley, Chairman of the Board, was named interim Chief Executive
Officer of the two companies.
"Doc Crants' position as CEO was terminated as part of our plan to hire
a new Chief Executive Officer under our previously announced corporate
restructuring," stated Mr. Beasley. "Our search for a new CEO has narrowed and
we are optimistic that an announcement can be made expeditiously. Although no
longer a Director or Officer of Prison Realty or CCA, Doc Crants will continue
as a director of the two affiliated private services companies, Prison
Management Services, Inc. and Juvenile and Jail Facility Management Services,
Inc. He will remain on the boards at the request of the voting shareholders of
these companies, in order to retain his experience in the private corrections
industry."
"The change in management is part of our proposed restructuring plan to
merge Prison Realty with its primary tenant, CCA. Assuming stockholders approve
the merger, the new company will elect to be taxed as a C corporation rather
than as a REIT, commencing with its 2000 taxable year. As a C corporation, the
corporate and financial structure will be simplified, the company will be able
to retain earnings to fund future growth opportunities and it will eliminate
potential conflicts of interest that have harmed our credibility in the public
markets."
"We will mail proxy statements for Prison Realty's special
stockholders' meeting beginning August 1, 2000 with the meeting scheduled for
September 12, 2000. We believe the restructuring plan is in the best interest of
stockholders and will improve our opportunities to build stockholder value in
the future," concluded Mr. Beasley.
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ABOUT THE COMPANY
Prison Realty's business is the development and ownership of
correctional and detention facilities. Headquartered in Nashville, Tennessee,
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.
Corrections Corporation of America includes companies that provide
detention and corrections services to governmental agencies. The Company is the
industry leader in private sector corrections with approximately 70,000 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.
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 changes in management, accounting
changes related to a change from federal taxation as a REIT to a C corporation,
merger plan between 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
cause operating and financial results to differ are described in Prison Realty's
Form 10-K and Form 8-K filed with the Securities and Exchange Commission. Other
risks may be detailed from time to time in reports to be filed with the SEC.
Prison Realty 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.
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