The GEO Group Provides an Update on a Potential REIT Conversion

  The GEO Group Provides an Update on a Potential REIT Conversion

Business Wire

BOCA RATON, Fla. -- August 08, 2012

The GEO Group, Inc. (NYSE:GEO) ("GEO") provided an update today on its ongoing
evaluation of a potential conversion into a real estate investment trust
("REIT") during its second quarter 2012 earnings conference call.

GEO has engaged the law firm of Skadden Arps as its legal advisors and Bank of
America Merrill Lynch and Barclays Capital as its financial co-advisors to
assist with the comprehensive review. In the middle of July 2012, GEO
submitted a request to the United States Internal Revenue Service for a
private letter ruling in order to better inform GEO's board of directors
regarding the potential advantages and disadvantages of a REIT conversion and
to determine whether GEO would qualify to convert to a REIT.

Once GEO and its advisors complete the comprehensive analysis being performed
regarding a potential REIT conversion, GEO's board of directors will be
adequately informed and in a position to determine whether to move forward
with a REIT conversion. If GEO's board of directors concludes that it is in
the best interest of GEO to proceed with the REIT conversion, GEO would seek
to complete the conversion by the earliest conversion date which is January
2013; however, due to the short timeframe, the REIT conversion could be
delayed until the next available conversion date which is January 2014. A
conversion by GEO into a REIT would require the approval of GEO's
shareholders.

The GEO Group, Inc. is the world’s leading diversified provider 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 20,000 employees, 109
correctional, detention and residential treatment facilities, including
projects under development, and 75,000 owned and/or managed beds.

This press release contains forward-looking statements regarding future events
and future performance of GEO that involve risks and uncertainties that could
materially affect actual results, including statements regarding the
possibility and timing of a REIT conversion. 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) GEO’s
analysis of the advantages and disadvantages of a REIT conversion; (2) the
results of GEO's private letter ruling request to the IRS; (3) GEO’s ability
to successfully pursue further growth and continue to enhance shareholder
value; (4) GEO’s ability to access the capital markets in the future on
satisfactory terms or at all; (5) risks associated with GEO’s ability to
control operating costs associated with contract start-ups; (6) GEO’s ability
to timely open facilities as planned, profitably manage such facilities and
successfully integrate such facilities into GEO’s operations without
substantial costs; (7) GEO’s ability to win management contracts for which it
has submitted proposals and to retain existing management contracts; (8) GEO’s
ability to obtain future financing on acceptable terms; (9) GEO’s ability to
sustain company-wide occupancy rates at its facilities; and (10) other factors
contained in GEO’s Securities and Exchange Commission filings, including the
forms 10-K, 10-Q and 8-K reports.

Contact:

The GEO Group, Inc.
Pablo E. Paez, 1-866-301-4436
Vice President, Corporate Relations