CCA Completes Internal Reorganization

CCA Completes Internal Reorganization 
Awaits Private Ruling From IRS 
NASHVILLE, TN -- (Marketwire) -- 01/02/13 --   CCA (NYSE: CXW) (the
"Company" or "Corrections Corporation of America"), announced today
that it has completed an internal reorganization of its business
operations so that it now has the ability to elect to qualify as a
real estate investment trust ("REIT") for the taxable year commencing
January 1, 2013. However, the Company's Board of Directors has not
yet completed its assessment of the feasibility of a REIT conversion.
Also, as previously disclosed, the Board has concluded that it would
not be advisable to elect REIT status without a private letter ruling
(PLR) from the Internal Revenue Service (IRS). We have not yet
received a PLR from the IRS and there is no specific schedule for the
IRS to respond to our PLR request. Although we believe there is a
sound legal basis for the IRS to grant the PLR we have requested, we
can provide no assurances the IRS will issue a favorable PLR. The
Board of Directors unanimously authorized management to take all
necessary steps to complete the internal reorganization following a
thorough analysis which concluded that our customers would experience
no change in the people, procedures or the high quality of service
they have come to expect from CCA. Likewise, our employees will be
unaffected by the reorganization and it requires no divestiture of
About CCA  
CCA is the nation's largest owner of partnership correction and
detention facilities and one of the largest prison operators in the
United States, behind only the federal government and three states.
We currently operate 67 facilities, including 47 company-owned
facilities, with a total design capacity of approximately 92,000 beds
in 20 states and the District of Columbia. CCA specializes in owning,
operating and managing prisons and other correctional facilities and
providing inmate residential services for governmental agencies. In
addition to providing the fundamental residential services relating
to inmates, our facilities offer a variety of rehabilitation and
educational programs, including basic education, religious services,
life skills and employment training and substance abuse treatment.  
Forward-Looking Statements  
This press release contains statements
 as to the Company's beliefs
and expectations of the outcome of future events that are
forward-looking statements as defined within the meaning of the
Private Securities Litigation Reform Act of 1995. These
forward-looking statements are subject to risks and uncertainties
that could cause actual results to differ materially from the
statements made. These include, but are not limited to, the risks and
uncertainties associated with: (i) obtaining a favorable private
letter ruling from the IRS in the form submitted by CCA in July 2012;
(ii) our ability to meet and maintain REIT qualification tests; (iii)
general economic and market conditions, including the impact
governmental budgets can have on our per diem rates, occupancy and
overall utilization; (iv) fluctuations in our operating results
because of, among other things, changes in occupancy levels,
competition, increases in cost of operations, fluctuations in
interest rates and risks of operations; (v) our ability to obtain and
maintain correctional facility management contracts, including as a
result of sufficient governmental appropriations and as a result of
inmate disturbances; (vi) changes in the privatization of the
corrections and detention industry, the public acceptance of our
services, the timing of the opening of and demand for new prison
facilities and the commencement of new management contracts; (vii)
the outcome of California's realignment program and utilization of
out of state private correctional capacity; (viii) the availability
of debt and equity financing on terms that are favorable to us and
(ix) increases in costs to construct or expand correctional
facilities that exceed original estimates, or the inability to
complete such projects on schedule as a result of various factors,
many of which are beyond our control, such as weather, labor
conditions and material shortages, resulting in increased
construction costs.  
Investors and Analysts: 
Karin Demler
(615) 263-3005 
Steven Owen
(615) 263-3107  
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