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EXHIBIT 99.2
NASHVILLE, Tenn.--(BW HealthWire)--May 31, 2000--America Service Group Inc.
(NASDAQ: ASGR) today announced that it has completed the acquisition of
Correctional Health Services, Inc. (CHS), effective as of June 1, 2000.
Execution of the acquisition agreement was previously announced on April 24,
2000. The purchase price of $17 million cash was financed with an extension of
the Company's current Senior Credit Facility. The transaction is expected to be
accretive to earnings within the current year.
"We are very pleased to welcome the clients and employees of Correctional
Health Services to our company," stated Michael Catalano, America Service
Group's president and chief executive officer. "Building on the strength of the
CHS management team, our efforts will focus on continuity of client service,
operating performance and marketing momentum in the northeast region."
America Service Group Inc., based in Brentwood, Tennessee, is a leading
provider of correctional healthcare services in the United States. America
Service Group Inc., through its subsidiaries, contracts with 123 government
agencies to provide a wide range of managed healthcare programs for
approximately 165,000 patients. The Company employs over 4,600 medical,
professional and administrative staff nationwide.
This press release may contain "forward-looking" statements made pursuant to
the safe harbor provisions of the Private Securities Litigation Reform Act of
1995. As such, they involve risk and uncertainty that actual results may differ
materially from those projected in the forward-looking statements. A discussion
of the important factors and assumptions regarding the statements and risks
involved is contained in the Company's filings with the Securities and Exchange
Commission.
CONTACT: America Service Group, Nashville
Michael Catalano, 615/376-1319
Bruce A. Teal, 615/376-1361
www.asgr.com
