Cornell Second Quarter

HOUSTON, Aug. 7, 2007 (PRIME NEWSWIRE) -- Cornell Companies, Inc. (NYSE:CRN) today reported results for the three and six months ended June 30, 2007.

James E. Hyman, Cornell's chairman and chief executive officer, said, "Cornell made good progress in executing its business plan during the second quarter. We made several advancements that position the company well for long-term growth into 2008 and beyond, and we showed strong operations that would have enabled us to raise guidance for 2007. However, the unexpected political environment at our Regional Correctional Center ("RCC") facility in Albuquerque, New Mexico, caused one customer to begin population withdrawals in July and now causes us to reduce our earnings forecast for 2007. We remain confident both in our growth plan for the business and in our specific ability to remarket the RCC to other customers should that become necessary."