Corrections Corporation of America
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102 Woodmart Blvd.
Nashville, TN 37205

ALEXANDRIA, V.A., July 25, 1996/FOOLWIRE/-- Corrections Corporation of America <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: CXC)") else Response.Write("(NYSE: CXC)") end if %> today reported record second quarter results. CCA manages prisons and other correctional institutions for government agencies.

CCA revenues rose 32% to $67.5 million from $51.3 million year over year. Net income rose 54% to $7million, or $0.09 per primary share and $0.08 per fully diluted share from $2.7 million, or $0.04 per primary share and $0.04 per diluted share, year over year. CCA contribution margin was up over 130%

For the first six months, revenues rose 37% to $130 million from $95 million from the previous period in 1995. Net income rose 47% to $12 million, or $0.16 per primary share and $0.15 per diluted share, from $5 million, or $0.07 per primary share and $0.07 per diluted share, from the previous period in 1995.

The record 154% increase in earnings is a result of cost control and continued leverage at the operating level. CCA cost per compensated man day during Q2 was $27.93, down from $29.14 in Q1. The increase in earnings can also be attributed to market expansion. CCA opened a 160 bed expansion the company's West Tennessee facility in Mason, Tennessee. CCA also opened a 400 bed secure juevinal facility in Columbia, South Carolina. The occupancy for the period was 93.8%. The occupancy rate increased against Q1 primarily because the facility in Bartlette, Texas moved up to full occupancy.

People have suggested that Chairman and CEO, Dr. R. Crants should change the company's marketing strategy and move into a low price, low margin strategy. However, the key to CCA's success is its current strategy which takes advantage of CCA's economies of scale and running a low cost, tightly run operation. Management does not believe that it needs to worry about its competitors because they do not have the same luxury of market size. To further his point, Dr. Crant pointed out that of all the contracts signed this year, "noone has done better than CCA".

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