Thursday, January 15, 2009

The GEO Group Announces Opening of 192-Bed Expansion of 576-Bed Robert A. Deyton Detention Facility in Georgia

(BUSINESS WIRE)--The GEO Group (NYSE:GEO) (“GEO”) announced today the opening of a 192-bed expansion of the 576-bed Robert A. Deyton Detention Facility (the “Facility”) in Lovejoy, Georgia. GEO manages the Facility under a 20-year contract, inclusive of three five-year option periods, with the Office of the Federal Detention Trustee. GEO leases the Facility from the County under a 20-year agreement, with two five-year renewal options. The Facility houses detainees under custody of the United States Marshals Service.

GEO expects to complete the intake of 192 detainees in the first quarter of 2009. At the current 576-bed occupancy level, the Facility generates approximately $16.0 million in annual operating revenues. GEO expects the 192-bed expansion to generate approximately $4.0 million in additional annual operating revenues.

George C. Zoley, Chairman of the Board and Chief Executive Officer of GEO, said, “We are looking forward to the successful ramp-up of this important expansion. The Robert A. Deyton Detention Facility plays a critical role in helping meet the demand for Federal bed-space as a regional detention center in the southeastern United States. We look forward to building on our partnership with the Office of the Federal Detention Trustee, the U.S. Marshals Service, and Clayton County, Georgia.”

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 62 correctional and residential treatment facilities with a total design capacity of approximately 60,000 beds, including projects under development.

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.

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