The GEO Group Signs Contract with the State of Georgia for New 1,500-Bed Correctional Facility

The GEO Group (NYSE: GEO) (“GEO”) announced today that it has signed a contract with the State of Georgia, Department of Corrections for the development and operation of a new 1,500-bed correctional facility (the “Facility”) to be located in Milledgeville, Georgia.

Under the terms of the contract, GEO will finance, develop, and operate the new $80.0 million, 1,500-bed Facility on state-owned land pursuant to a 40-year ground lease. The Facility is expected to generate approximately $28.0 million in annualized revenues and is expected to open in the first quarter of 2012.

George C. Zoley, Chairman and Chief Executive Officer of GEO, said, “We appreciate the confidence placed in our company by the Georgia Department of Corrections. This important project will help meet the state’s correctional bed needs. We look forward to developing a strong public-private partnership with the State of Georgia and the community of Milledgeville.”

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 63 correctional and residential treatment facilities with a total design capacity of approximately 61,500 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.