Company Expands Deal at Indiana Correctional Facility

Press Release

BOCA RATON, Fla., Nov 07, 2008 -- The GEO Group, Inc. announced today that it has received a notice of discontinuation of its contract with the State of Idaho, Department of Correction ("Idaho DOC") for the housing of approximately 305 out-of-state inmates at the managed-only Bill Clayton Detention Center (the "Detention Center") effective January 5, 2009. The State of Idaho intends to consolidate its entire out-of-state inmate population into one large-scale private correctional facility.

GEO assumed operation of the managed-only Detention Center when it acquired Correctional Services Corporation in November 2005. The Detention Center is located in the community of Littlefield, Texas, with an estimated population of 6,500 people. GEO's contract with the Idaho DOC generated approximately $4.9 million in annual operating revenues. GEO will be terminating its contract with the City of Littlefield for the management of the Detention Center.

GEO also announced an expansion of its contract capacity with the State of Indiana, Department of Correction ("Indiana DOC") at the New Castle Correctional Facility (the "Correctional Facility") from 2,104 to 2,524 beds, which will require no new construction and will begin ramping up by November 10, 2008. As a result of this contract expansion, GEO expects to generate approximately $4.9 million in additional annual operating revenues.

The discontinuation of GEO's contract with the Idaho DOC will have no material impact on GEO's previously issued pro forma earnings guidance for the fourth quarter of 2008. GEO expects to incur a one-time expense, which will be adjusted in GEO's pro forma earnings in the fourth quarter of 2008, associated with the non-cash write-off of approximately $1.0 million, pre-tax, in facility improvements at the managed-only Bill Clayton Detention Center. The facility improvements were undertaken prior to GEO's acquisition of Correctional Services Corporation in November 2005. GEO expects the discontinuation of its contract with the Idaho DOC to be more than offset by the 420-bed contract expansion with the Indiana DOC.

George C. Zoley, Chairman and Chief Executive Officer of GEO, stated, "We understand the decision by the State of Idaho to consolidate its out-of-state inmate population into one large-scale facility. This consolidation effort has led to the discontinuation of our out-of-state inmate contract with the Idaho Department of Correction at the Bill Clayton Detention Center, which we will no longer manage due to financial underperformance and lack of economies of scale. We will work cooperatively with the State of Idaho to transfer the Idaho inmate population effective January 5, 2009. Further, we will work with the City of Littlefield as we discontinue our management of the Detention Center.

"At the same time, we are very pleased with our announced expansion of the contract capacity at the New Castle Correctional Facility in Indiana from 2,104 to 2,524 beds without any new construction. We look forward to ramping up this additional capacity and to strengthening our public-private partnership with the State of Indiana and the community of New Castle," Zoley added.

The GEO Group, Inc. ("GEO") is a world leader in the delivery of correctional, detention, and residential treatment services to federal, state, and local government agencies around the globe. GEO offers a turnkey approach that includes design, construction, financing, and operations. GEO represents government clients in the United States, Australia, South Africa, and the United Kingdom. GEO's worldwide operations include the management and/or ownership of 66 correctional and residential treatment facilities with a total design capacity of approximately 64,000 beds, including projects under development.