Cornell Awarded Contract From Federal Bureau of Prisons

Big Spring Correctional Center Receives CAR-6 Procurement Award


HOUSTON, Jan. 19, 2007 (PRIME NEWSWIRE) -- Cornell Companies, Inc. (NYSE:CRN) was awarded a contract from the Federal Bureau of Prisons (BOP) for the existing Big Spring Correctional Center. The contract, effective April 1, 2007, provides for an initial term of four years, with three two-year renewal option periods. The facility currently houses as many as 2,900 inmates for the BOP. Under the new contract, the Big Spring facility will expand to potentially house as many as 3,500 inmates. Expansion-related construction, estimated at approximately $20.0 million, is expected to take up to nine months to complete. The company estimates it will earn $268.8 million in revenues over the four-year base term of the contract.

In 2006, the BOP issued the Criminal Alien Requirement VI (CAR-6) procurement, aiming to replace four existing intergovernmental service agreements in West Texas with direct contracts, including the contract under which Cornell currently manages its facility in Big Spring, Texas.

James E. Hyman, Cornell's chairman and chief executive officer, stated, "We couldn't be more pleased with the BOP's decision to continue our long-standing relationship at the Big Spring Correctional Center. This is wonderful news for both us and the City of Big Spring, whom we view as a key component of our success at the facility. Our employees and management team remain committed to delivering quality services in an expanded capacity for the BOP."

About Cornell Companies

Cornell Companies, Inc. is a leading private provider of corrections, treatment and educational services outsourced by federal, state and local governmental agencies. Cornell provides a diversified portfolio of services for adults and juveniles, including incarceration and detention, transition from incarceration, drug and alcohol treatment programs, behavioral rehabilitation and treatment, and grades 3-12 alternative education in an environment of dignity and respect, emphasizing community safety and rehabilitation in support of public policy. The Company (www.cornellcompanies.com) has 78 facilities in 17 states and the District of Columbia with a total service capacity of 18,555.

The Cornell Companies, Inc. logo is available at http://www.primezone.com/newsroom/prs/?pkgid=1468

Certain statements included in this news release are intended as "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. The Company cautions that actual future results may vary materially from those expressed or implied in any forward-looking statements. More information about the risks and uncertainties inherent in the Company's businesses relating to these forward-looking statements are found in the Company's SEC filings, which are available free of charge on the SEC's web site at http://www.sec.gov.



            

Tags


Contact Data