<PAGE>
[LOGO]
March 17, 1999
Dear Shareholder:
The purpose of this letter is to serve as a reminder for you to vote on the
proposed merger between Youth Services International, Inc. (YSI) and
Correctional Services Corporation (CSC). Please remember that your proxy must
be received no later than March 30, 1999. In addition, your Board of Directors
wants to remind you of its rationale of its recommendation to vote yes for the
merger with CSC.
CSC is a highly reputable publicly traded company with a juvenile justice
management team that we believe is unparalleled in the industry. Therefore the
merger with CSC provides a significant amount of comfort to our clients who
are very selective with whom they do business and who do not like uncertainty
regarding the companies with which they contract. We believe that the recent
re-award to YSI of two significant contracts by customers who were fully aware
of the pending merger with CSC is evidence of the high degree of comfort our
customers have with CSC. (YSI was re-awarded the 350-bed Hickey School
contract in Maryland and the Cypress Creek contract in Florida, which also was
increased from 60 to 100 beds.)
In addition to the strategic fit of a business combination with CSC (as
outlined on page 28 of the proxy statement previously mailed to you) your
board thoroughly evaluated the option of remaining a stand-alone company and
rejected it for the reasons set forth on page 29 of the proxy statement.
CSC offers YSI shareholders with the opportunity to own shares in a company
that we believe has a stronger ability to grow in size and profitability. In
addition, CSC offers significant potential operating efficiencies and savings
from the consolidation of administrative and support functions. We firmly
believe that the merger with CSC provides the greatest value to our
shareholders, not only in the value of stock you receive on the day of closing
but in the potential value that we believe CSC stock could achieve in the
future.
Support for the Board's recommendation can be seen in the vote of Jeff
Parsons, our VP of Operations. Mr. Parsons was the CEO of Community
Corrections, Inc., the Texas-based juvenile justice provider we purchased last
year. Mr. Parsons, who has significant stock holdings in YSI, has provided the
company with his proxy voting yes for the transaction. In addition,
Institutional Shareholder Services, an independent third-party evaluator of
proposals by companies, has published a report in favor of the proposal and
recommending to shareholders that they vote for the merger.
It is important for all shareholders to vote. If you do not vote it will be
counted as a vote against the proposal. Please read the proxy statement, fill
out the enclosed proxy card and return it for receipt prior to March 30, 1999.
The Board recommends you vote in favor of the proposal. For any questions
regarding voting your proxy or about the merger, please call our proxy
solicitor, Corporate Investor Communications, Inc. at 1-800-346-7885.
Sincerely yours,
The Board of Directors of Youth
Services International, Inc.
