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.