CPV Cbs Corp. New Senior Notes

Correctional Properties Trust Reports Ten Percent (10%) Quarterly Rental Income Growth PALM BEACH GARDENS, Fla., May 4 /PRNewswire-FirstCall/ -- Correctional Properties Trust , a real estate investment trust (REIT), today announced net income for the three months ended March 31, 2004, of $4.5 million, or $.41 per diluted share, on revenue of $8.4 million. Funds from operations (the non-GAAP financial measure described below) for the three months ended March 31, 2004, was $6.4 million, or $.58 per diluted share. For the three months ended March 31, 2003, the Trust previously reported net income of $2.6 million, or $.35 per diluted share, on revenue of $7.6 million. Funds from operations were $4.4 million or $.59 per diluted share in 2003. Correctional Properties Trust also announced that its Board of Trustees declared a quarterly dividend of $0.45 (forty-five cents) per share on each common share of beneficial interest, payable June 1, 2004, to shareholders of record at the close of business May 14, 2004. Charles R. Jones, President and CEO stated, "I am pleased with our first quarter financial results reflecting a 10% growth in revenue over the same period in 2003. We continue to see strong demand for capital in the corrections sector and look forward to acquisition opportunities in 2004." 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 14 correctional facilities in ten states, all of which are leased, with an aggregate initial design capacity of 8,008 beds. This press release contains forward-looking statements regarding future events and future performance of the Company that involve risks and uncertainties that could materially affect actual results. This information is qualified in its 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, without limitation, the Company's Form 10-K, Forms 10-Q, Registration Statements on Form S-11 and S-3, and Form 8-K CONTACT: Correctional Properties Trust Shareholder Services (561) 630-6336, or access Company information at http://www.correctionalpropertiestrust.com/ CORRECTIONAL PROPERTIES TRUST CONSOLIDATED STATEMENTS OF INCOME FOR THE THREE MONTHS ENDED MARCH 31, 2004 AND MARCH 31, 2003 (AMOUNTS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) (Unaudited) March 31, March 31, 2004 2003 REVENUES RENTAL $8,357 $7,570 INTEREST 15 26 8,372 7,596 EXPENSES DEPRECIATION 1,895 1,783 GENERAL and ADMINISTRATIVE 664 459 INTEREST 1,302 2,726 3,861 4,968 NET INCOME $4,511 $2,628 NET INCOME PER COMMON SHARE BASIC $0.41 $0.36 DILUTED $0.41 $0.35 WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING BASIC 10,973 7,397 DILUTED 11,092 7,477 FUNDS FROM OPERATIONS Management believes Funds from Operations ("FFO") is helpful to investors as a measure of the performance of an equity REIT. Funds from Operations should not be considered as an alternative to net income (determined in accordance with GAAP) as an indication of the Company's financial performance or to cash flows from operating activities (determined in accordance with GAAP) as a measure of the Company's liquidity, nor is it indicative of funds available to fund the Company's cash needs, including its ability to make distributions. The Company computes Funds from Operations in accordance with the current standards established by the White Paper on Funds from Operations approved by the Board of Governors of the National Association of Real Estate Investment Trusts ("NAREIT"), which may differ from the methodology for calculating Funds from Operations utilized by other equity REITs, and accordingly, may not be comparable to such other REITs. The White Paper defines Funds from Operations as net income (loss), computed in accordance with generally accepted accounting principles ("GAAP"), excluding gains (or losses) from sales of property, plus real estate related depreciation and amortization and after adjustments for unconsolidated partnerships and joint ventures. Further, Funds from Operations does not represent amounts available for management's discretionary use because of needed capital replacement or expansion, debt service obligations, or other commitments and uncertainties. The Company believes that in order to facilitate a clear understanding of the consolidated operating results of the Company, Funds from Operations should be examined in conjunction with net income as presented in the consolidated financial statements. The table below presents the Company's Funds from Operations for the three months ended March 31, 2004 and March 31, 2003. (Unaudited) (Amounts in thousands, except per share amounts) March 31, March 31, 2004 2003 Net income $4,511 $2,628 Real estate depreciation and amortization 1,895 1,783 Funds from operations $6,406 $4,411 Weighted average shares outstanding, basic 10,973 7,397 Weighted average shares outstanding, diluted 11,092 7,477 FFO per share from operations Basic $0.58 $0.60 Diluted $0.58 $0.59 Other Information Straight-Line Rents in Excess of Contract Rents $102 $91 Amortization of Deferred Financing Costs $211 $216 DATASOURCE: Correctional Properties Trust CONTACT: Correctional Properties Trust Shareholder Services, +1-561-630-6336

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