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| Wackenhut Corrections Corporation Announces Renewal Of Michigan Youth Contract For Four-Year Term |
| By Press Release |
| Published: 07/28/2003 |
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BOCA RATON, FL - Wackenhut Corrections Corporation (NYSE: WHC) ('WCC') announced today that the Michigan Administrative Review Board has renewed the contract between WCC and the Michigan Department of Corrections for the management and operation of the Michigan Youth Correctional Facility for four years beginning July 25, 2003 and ending July 24, 2007. The contract is for the housing of up to 480 young male offenders who have been adjudicated as adults. The new contract per diem rate is $75.81 with an annual value of approximately $13 million. This four- year contract is an extension of the original four-year contract entered into by WCC and the Michigan Department of Corrections in 1999. In addition to the operations contract with the Michigan Department of Corrections, WCC has a separate lease agreement with the State of Michigan with an initial lease term of 20 years, which may be extended by the state for two additional consecutive five-year terms. George C. Zoley, Chairman of the Board and Chief Executive Officer of WCC, said: 'We appreciate the confidence placed in our company by the State of Michigan. This facility plays an important role in addressing the special needs of Michigan's young male offender population, and we are proud of the achievements made by our public-private partnership with the Michigan Department of Corrections over the past four years. We look forward to furthering our contribution to the community of Lake County and the State of Michigan.' WCC is a world leader in the delivery of correctional and detention management, health and mental health services to federal, state and local government agencies around the globe. WCC offers a turnkey approach that includes design, construction, financing and operations. The Company represents 31 government clients servicing 48 facilities in the United States, Australia, South Africa, New Zealand, and Canada with a total design capacity of approximately 36,000 beds. This press release contains forward-looking statements regarding future events and future performance of the Company that involve risks and uncertainties that could materially affect actual results, including statements regarding estimated earnings, revenues and costs and our ability to maintain growth and strengthen contract relationships. Factors that could cause actual results to vary from current expectations and forward-looking statements contained in this press release include, but are not limited to: (1) WCC's ability to maintain its public-private partnership with the Michigan Department of Corrections; (2) risks associated with WCC's ability to control operating costs associated with contract start-ups; (3) WCC's ability to timely open facilities as planned, profitably manage such facilities and successfully integrate such facilities into WCC's operations without substantial costs; (4) WCC's ability to win management contracts for which it has submitted proposals and to retain existing management contracts; (5) WCC's ability to obtain future financing on acceptable terms; (6) WCC's ability to sustain company-wide occupancy rates at its facilities; and (7) other factors contained in WCC's Securities and Exchange Commission filings, including the forms 10-K, 10-Q and 8-K reports. |

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