CSCQ Correctional Services (MM)

Correctional Services Corporation (NASDAQ:CSCQ) announced today that it has begun operations at its new 1020-bed South Texas Detention Complex, receiving its first detainees this week. The Company was awarded a contract to design, build, finance and operate a regional detention complex for the Department of Homeland Security, Immigration and Custom Enforcement ("ICE") last year. The facility is now fully operational. The contract calls for fixed monthly payments and is expected to generate revenues of approximately $21.7 million annually. Commenting on the opening of the facility, James F. Slattery stated, "This is an exciting project for our company, one in which we were extremely pleased to be awarded and very proud to be opening on time and on budget. We look forward to working with ICE to provide the detention and support services necessary to provide a safe and secure environment while helping to reduce their overall operational cost." Safe Harbor Statement Under The Private Securities Litigation Reform Act of 1995 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, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. 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 uncertainties 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 uncertainties and risks include, but are not limited to: fluctuations in occupancy levels and labor costs; the ability to secure both new contracts and the renewal of existing contracts; the possibility of unforeseen costs relating to facility closings, the ability to achieve profitability and public resistance to privatization; ability to obtain construction financing; and ability to complete new construction projects within budgeted amounts. Additional risk factors include those discussed in reports filed by the Company from time to time on Forms 10-K, 10-Q and 8-K. The Company does not undertake any obligation to update any forward-looking statements.