CPV Cbs Corp. New Senior Notes

Correctional Properties Trust Announces Closing of Comprehensive Lawton, Oklahoma Transaction PALM BEACH GARDENS, Fla., May 31 /PRNewswire-FirstCall/ -- Correctional Properties Trust (NYSE:CPV), a real estate investment trust (the "Company" or "CPT"), announced it has completed the acquisition of the existing 300-bed expansion to the Lawton Correctional Facility in Lawton, Oklahoma from The GEO Group, Inc. (NYSE:GGI). The acquisition was completed using cash on hand, and no debt was incurred. The purchase price was $3.5 million. The Company also closed a transaction under which a 600-bed expansion, costing approximately $23 million, will be constructed onto the existing medium- security prison. The Company expects the new 600-bed expansion to be completed and become operational during the second quarter of 2006. CPT will own the entire 2,518- bed facility, comprised of the original 1,500 beds, the original 118 administrative beds, the newly acquired 300-bed expansion, and the 600-bed expansion to be constructed. The facility will continue to be leased to The GEO Group, Inc. ("GEO") to house adult, male inmates for the Oklahoma Department of Corrections. In 1999, the Company purchased the initial 1,500-bed, medium-security, Lawton Correctional Facility from GEO (formerly Wackenhut Corrections Corporation). GEO then added the 300-bed expansion later that year, which they designed, constructed and owned. The Company has now purchased that existing 300-bed expansion for $3.5 million. CPT will also provide the funding for and own the new 600-bed expansion expected to cost approximately $23 million. The 600-bed expansion is a build-to-suit project, with GEO providing design and development expertise, and Hensel Phelps Construction Company serving as the builder. CPT expects to incur no construction risk or construction management responsibility in connection with the new expansion. The architects, engineers and construction-related professionals have been selected, engaged and will be supervised by GEO, which has extensive experience and expertise in prison development and construction. GEO is currently paying the Company a lease rate of 11.08 percent on the original 1,500-bed facility, which remains unchanged as a result of this transaction. The acquired 300-bed expansion will now be leased to GEO at an initial rate of 9.5 percent. This will result in a blended-lease rate for the 1,918-bed facility (which includes 118 adult segregation beds) of approximately 10.96 percent with annual lease escalators at CPI, not to exceed 4 percent annually. The new 600-bed expansion will also be leased to GEO at an initial rate of 9.5 percent when it is completed. Following the completion of the new 600-bed expansion, the initial blended-lease rate on the entire 2,518- bed facility is expected to be approximately 10.50 percent with annual lease escalators at CPI, not to exceed 4 percent annually. The lease maturity date on the existing 1,500-bed facility between GEO and the Company has been amended. GEO had approximately four years remaining on its original 10-year lease with the Company. The amended lease provides a maturity date of 10 years on the entire 2,518-bed facility and will commence when the new 600-bed expansion is completed. Charles R. Jones, president and chief executive officer of CPT, said, "The completion of this transaction is a significant event for our Company for several reasons. Previously, all of our facilities have been purchased as a finished product and then leased back to the seller. In this case, we are funding a large, build-to-suit addition to an owned facility, which adds an important dimension to our Company. Also, following the completion of the new addition, we will have an amended, triple-net lease in place, with a new 10- year term." Correctional Properties Trust, based in Palm Beach Gardens, Florida, was formed in February 1998 to capitalize on the growing trend toward privatization in the corrections industry. Correctional Properties Trust is dedicated to ownership of correctional facilities under long-term, triple-net leases, which minimizes occupancy risk and development risk. Correctional Properties Trust currently owns 12 correctional facilities in nine states, all of which are leased, with an aggregate completed design capacity of 7,156 beds. This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 regarding future events and future performance of the Company that involve risks and uncertainties that could materially affect actual results. Such forward- looking statements are made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995 and are qualified in their entirety by cautionary statements and risk factors disclosure contained in certain of the Company's Securities and Exchange Commission filings. For a description of certain factors that could cause actual results to vary from current expectations and forward-looking statements contained in this press release, refer to documents that the Company files from time to time with the Securities and Exchange Commission. Such filings include the Company's Form 10-K for the fiscal year ended December 31, 2004 and subsequent periodic reports. The Company assumes no obligation to update or supplement forward- looking statements that become untrue because of subsequent events. Contact: Correctional Properties Trust Shareholder Services, (561) 630-6336, or access Company information at http://www.correctionalpropertiestrust.com/ DATASOURCE: Correctional Properties Trust CONTACT: Correctional Properties Trust Shareholder Services, +1-561-630-6336 Web site: http://www.correctionalpropertiestrust.com/

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