The GEO Group, Inc. Selected to Begin Contract Negotiations for Operations of Indiana's New Castle Correctional Facility

    BOCA RATON, Fla., Aug. 30 /PRNewswire-FirstCall/ -- The GEO Group, Inc.
 (NYSE:   GGI) ("GEO") announced today that it has been selected to begin
 contract negotiations with the Indiana Department of Correction to provide
 operations at the 2,416-bed New Castle Correctional Facility located in New
 Castle, Indiana.  During the first year of operation, the 2,416-bed prison is
 expected to house approximately 1,068 minimum through medium security adult
 male offenders for the Indiana Department of Correction.
     (Logo:  http://www.newscom.com/cgi-bin/prnh/20031201/FLM015LOGO )
     Contract negotiations have begun, with an anticipated contract signing no
 later than September 9, 2005. If negotiations are successfully completed, GEO
 expects to begin operations of the facility in January 2006 under the terms of
 a renewable operations agreement with a duration of 10 years.  During the term
 of the agreement, the Indiana Department of Correction may increase the
 offender population up to a maximum of 2,416 inmates.
     J. David Donahue, Commissioner of the Indiana Department of Correction,
 commented, "This relationship will help the Department fully utilize the New
 Castle Correctional facility and its resources. Offenders will continue to be
 offered program resources and be effectively managed by a professional team.
 As the courts continue to send convicted persons to the Department, this
 partnership will improve the way corrections is offered in Indiana and broaden
 the existing toolbox of programs that assist offenders in successfully re-
 entering society as law-abiding members of the community."
     George C. Zoley, Chairman and Chief Executive Officer of GEO, said, "We
 sincerely appreciate being selected by the Indiana Department of Correction to
 begin negotiations for the management and operation of the first contracted
 prison operation in Indiana.  We will work hard to establish a public-private
 partnership with the State of Indiana that meets and exceeds the Department's
 contract requirements and fully supports Commissioner Donahue's vision and
 mission for Indiana's correctional system.  We are equally excited to begin
 working closely with the community of New Castle to maximize the local and
 state economic development impact of this project."
 
     About the Indiana Department of Correction
     The Department employs over 8,000 employees and houses 24,000 adults and
 juveniles in 32 facilities, ranging from minimum to maximum custody, prison
 camps, juvenile facilities and work release centers. The Department's home
 page on the Internet can be found at: http://www.in.gov/indcorrection . The
 Department's Re-entry Site can be found: http://www.reentry.in.gov .
 
     About The GEO Group, Inc.
     The GEO Group, Inc. ("GEO") is a world leader in the delivery of
 correctional and detention management, health and mental health, and other
 diversified services to federal, state, and local government agencies around
 the globe. GEO offers a turnkey approach that includes design, construction,
 financing, and operations.  GEO represents government clients in the United
 States, Australia, South Africa, and Canada with contracts and awards to
 manage 42 facilities with a total design capacity of approximately 38,500
 beds.
 
     This press release contains forward-looking statements regarding future
 events and future performance of GEO that involve risks and uncertainties that
 could materially affect actual results, including statements regarding
 estimated earnings, revenues and costs and our ability to maintain growth and
 strengthen contract relationships. Factors that could cause actual results to
 vary from current expectations and forward-looking statements contained in
 this press release include, but are not limited to: (1) GEO's ability to
 successfully operate the 2,416-bed New Castle Correctional Facility; (2) GEO's
 ability to successfully pursue further growth and continue to enhance
 shareholder value; (3) GEO's ability to access the capital markets in the
 future on satisfactory terms or at all;  (4) risks associated with GEO's
 ability to control operating costs associated with contract start-ups; (5)
 GEO's ability to timely open facilities as planned, profitably manage such
 facilities and successfully integrate such facilities into GEO's operations
 without substantial costs; (6) GEO's ability to win management contracts for
 which it has submitted proposals and to retain existing management contracts;
 (7) GEO's ability to obtain future financing on acceptable terms; (8) GEO's
 ability to sustain company-wide occupancy rates at its facilities; and (9)
 other factors contained in GEO's Securities and Exchange Commission filings,
 including the forms 10-K, 10-Q and 8-K reports.
 
 

SOURCE The GEO Group, Inc.

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