CCA Second Quarter Profits

Operating income for the second quarter of 2007 was $65.8 million, compared with $55.2 million for the same period in the prior year. EBITDA increased 18.4% to $84.8 million during the second quarter of 2007, from $71.6 million during the second quarter of 2006. Financial results for the second quarter were primarily impacted by continued demand for prison beds from both federal and state customers.

Management revenue from federal customers increased $20.7 million, or 16.0%, to $150.0 million during the second quarter of 2007 from $129.3 million during the second quarter of 2006, as a result of higher inmate populations from the Immigration and Customs Enforcement ("ICE") and the U.S. Marshals Service ("USMS"). Federal revenues were positively impacted by a new management contract from ICE at our Stewart Detention Center that began receiving detainees in October 2006 and a full quarter impact of a new management contract at our T. Don Hutto Residential Center that became effective in May 2006. Additionally, federal revenues were favorably impacted by the backfilling of the vacated beds in our Florence Correctional Center with additional USMS detainees as a result of the commencement of operations at our new Red Rock Correctional Center in July 2006.