NEWS
COMPANY CONTACT:
Ira Cotler
October 20, 2000 Executive Vice President-Finance
(941) 953-9199
CORRECTIONAL SERVICES CORPORATION
ANNOUNCES STOCK BUYBACK PROGRAM
Sarasota, Florida -- Correctional Services Corporation (NASDAQ
NMS:CSCQ) today announced that its Board of Directors had authorized
a share repurchase program of up to $10 million. As of June 30, 2000
the company had 11,373,046 shares of common stock outstanding. The
repurchase is expected to begin during the 4th quarter and continue
over the next 12 months and may be made in the open market, in
privately negotiated transactions or otherwise, depending upon bank
covenants, market conditions, share price, share availability, and
other factors.
"This share repurchase program is a vital part of our strategy to
maximize shareholders' value" stated James F. Slattery Chairman and
CEO. "As indicated in the company's historic statements to the
financial community, we are committed to enhancing shareholder value
and will continue to examine additional strategies to achieve this
goal. The company will utilize a percentage of capital from assets
sales and excess cash flow to fund the repurchase and, with the stock
trading at a significant discount to book value, we believe this to
be a proper use of funds for the company."
Through its Youth Services International subsidiary, the Company is
the nation's leading private provider of juvenile programs for
adjudicated youths with 35 facilities and over 4,400 juveniles in its
care. In addition, Correctional Services Corporation is a leading
developer and operator of adult correctional facilities operating 18
facilities representing approximately 7,100 beds. On a combined
basis, the company provides services in 20 states and Puerto Rico,
representing approximately 11,500 beds including aftercare services.
SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM
ACT OF 1995
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Certain statements contained in this press release are not historical
but are forward-looking statements within the meaning of Section 27A
of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934. These include statements regarding the
expectations, beliefs, intentions or strategies regarding the future.
The Company intends that all forward-looking statements be subject to
the safe-harbor provisions of the Private Securities Litigation
Reform Act of 1995. These forward-looking statements reflect the
Company's views as of the date they are made with respect to future
events and financial performance, but are subject to many uncer-
tainties and risks which could cause the actual results of the
Company to differ materially from any future results expressed or
implied by such forward-looking statements. Examples of such uncer-
tainties and risks include, but are not limited to: occupancy
levels; the renewal of contracts, the ability to secure new
contracts; availability and cost of financing to redeem YSI's
debentures and to expand our business; and public resistance to
privatization. Additional risk factors include those discussed in the
Form 10-K as well as those set forth in the Company's joint proxy
statement/prospectus, dated March 4, 2000 and those set forth in
reports filed by the Company from time to time on Forms 10-Q and 8-K.
The Company does not undertake any obligation to update any
forward-looking statements.
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