The GEO Group Assumes Management of 3,854 Beds in Florida and Adds 400 Incremental Detention Beds in Texas

  The GEO Group Assumes Management of 3,854 Beds in Florida and Adds 400
  Incremental Detention Beds in Texas

Business Wire

BOCA RATON, Fla. -- February 3, 2014

The GEO Group (NYSE:GEO) (“GEO”) announced today that it assumed management of
the 985-bed Moore Haven Correctional Facility, the 985-bed Bay Correctional
Facility, and the 1,884-bed Graceville Correctional Facility (the
“Facilities”) under contracts with the Florida Department of Management
Services effective February 1, 2014. The managed-only agreements have contract
terms of three years, with successive two-year renewal option periods. The
Facilities are expected to generate approximately $56 million in combined
annualized revenues at full occupancy.

Additionally, GEO announced today that it has increased the contracted
capacity at the company-owned Rio Grande Detention Center (the “Center”) in
Laredo, Texas from 1,500 to 1,900 beds under a contract with the U.S. Marshals
Service. The U.S. Marshals Services is expected to occupy up to 1,228 beds
with the remaining 672 beds reserved for U.S. Immigration and Customs
Enforcement. The 1,900-bed Center is expected to generate approximately $38
million in total annualized revenues.

George C. Zoley, Chairman and CEO of GEO, said, “We are pleased with the
successful management transition of the Moore Haven, Bay, and Graceville
Correctional Facilities, which play an important role in providing cost
efficient correctional bed space in the state of Florida. We also appreciate
the confidence placed in our company by U.S. Immigration and Customs
Enforcement with the expanded use of our company-owned Rio Grande Detention
Center, which has been delivering high quality, cost efficient services since
2008. We look forward to strengthening our long-standing public-private
partnerships with Federal and State agencies across the country.”

The GEO Group, Inc. (NYSE: GEO) is the first fully integrated equity real
estate investment trust specializing in the design, financing, development,
and operation of correctional, detention, and community reentry facilities
around the globe. GEO is the world's leading provider of diversified
correctional, detention, community reentry, and electronic monitoring services
to government agencies worldwide with operations in the United States,
Australia, South Africa, and the United Kingdom. GEO's worldwide operations
include the ownership and/or management of 98 facilities totaling
approximately 77,000 beds, including projects under development, with a
growing workforce of approximately 18,000 professionals.

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 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) GEO’s ability to successfully
pursue further growth and continue to enhance shareholder value; (2) GEO’s
ability to access the capital markets in the future on satisfactory terms or
at all; (3) risks associated with GEO’s ability to control operating costs
associated with contract start-ups; (4) 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; (5)
GEO’s ability to win management contracts for which it has submitted proposals
and to retain existing management contracts; (6) GEO’s ability to obtain
future financing on acceptable terms; (7) GEO’s ability to sustain
company-wide occupancy rates at its facilities; and (8) 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, 866-301-4436
Vice President, Corporate Relations
 
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