The GEO Group Receives Favorable Private Letter Ruling from Internal Revenue Service; Elects REIT Status and Declares First

  The GEO Group Receives Favorable Private Letter Ruling from Internal Revenue
  Service; Elects REIT Status and Declares First Quarterly REIT Cash Dividend
  of $0.50 Per Share

Business Wire

BOCA RATON, Fla. -- January 18, 2013

The GEO Group, Inc. (NYSE: GEO) ("GEO") today announced that it has received a
favorable private letter ruling from the Internal Revenue Service in
connection with GEO’s previously announced conversion to a real estate
investment trust (“REIT”). GEO also has received an opinion from Skadden,
Arps, Slate, Meagher & Flom, LLP, which advised GEO on its REIT conversion
that GEO qualifies as a REIT. Based on the receipt of the private letter
ruling and the Skadden REIT opinion, GEO’s Board of Directors (the “Board”)
has authorized GEO to elect REIT status effective January 1, 2013. GEO will
seek inclusion in the appropriate REIT indices at the earliest possible date.

GEO also announced that on January 17, 2013, the Board declared GEO’s first
ever quarterly cash dividend as a REIT of $0.50 per share of common stock
based on GEO’s new outstanding share count of approximately 71.3 million,
which includes the issuance of approximately 9.7 million shares in connection
with GEO’s previously announced $350 million special dividend which was paid
on December 31, 2012. GEO’s quarterly REIT cash dividend of $0.50 per share
will be paid on March 1, 2013 to shareholders of record as of the close of
business on February 15, 2013.

George C. Zoley, GEO's Chairman, CEO and Founder, said, “We are very pleased
to have received a favorable private letter ruling from the Internal Revenue
Service. This important milestone validates the decisive actions taken by our
Board and our management team to position GEO to achieve REIT status effective
January 1, 2013 and enable our shareholders to begin enjoying the benefits of
REIT status as soon as possible. We are also delighted that we were able to
complete our earnings and profits distribution in 2012, which provided our
shareholders with maximum value. The declaration of our first quarterly cash
dividend as a REIT of $0.50 per share and our expected total annual dividends
of $2.00 per share in 2013 are indicative of our continued commitment to
return value to our shareholders.”

GEO retained Skadden, Arps, Slate, Meagher & Flom LLP and Akerman Senterfitt
as legal advisors, Bank of America Merrill Lynch and Barclays Capital as
financial co-advisors, and Deloitte, LLP as accounting advisors to assist in
GEO’s REIT conversion. The opinion of Skadden, Arps, Slate, Meagher & Flom LLP
was based on various assumptions relating to GEO’s organization and operation,
and was conditioned upon fact-based representations made by GEO’s management
regarding GEO’s organization, assets, and income, and the present and future
conduct of GEO’s business operations.

About The GEO Group, Inc.

The GEO Group, Inc. is the world's leading diversified provider of
correctional, detention, and community reentry 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 18,000 employees, 101
correctional, detention and community reentry facilities, including projects
under development, and 73,000 owned and/or managed beds.

Safe-Harbor Statement

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. 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 ability to meet
its financial guidance given the various risks to which its business is
exposed; (2) GEO's ability to declare future cash dividends; (3) GEO's ability
to successfully pursue further growth and continue to create shareholder
value; (4) risks associated with GEO's ability to control operating costs
associated with contract start-ups; (5) 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; (6)
GEO's ability to win management contracts for which it has submitted proposals
and to retain existing management contracts; (7) GEO's ability to obtain
future financing on acceptable terms; (8) GEO's ability to sustain
company-wide occupancy rates at its facilities; (9) GEO's ability to access
the capital markets in the future on satisfactory terms or at all; and (10)
other factors contained in GEO's Securities and Exchange Commission filings,
including the Form 10-K, 10-Q and 8-K reports.

Contact:

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