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Cornell Companies Signs Contract With the State of Alaska for 1,000 Beds At Cornell's Hudson Correctional Facility


HOUSTON, Sept. 30, 2009 (GLOBE NEWSWIRE) -- Cornell Companies, Inc.
(NYSE:CRN) announced today that Cornell Corrections of Alaska, Inc.
("Cornell Alaska"), its wholly owned subsidiary, has entered into a
contract with the State of Alaska Department of Corrections ("Alaska
DOC") to house up to 1,000 state prisoners at its Hudson Correctional
Facility (the "Facility") located in Hudson, Colorado. The contract is
pursuant to the previously announced Notice of Intent to Award by
Alaska DOC. The Facility, which will have a service capacity of 1,250
beds, is presently under construction and is expected to be completed
in November 2009.

The contract became effective on September 16, 2009 and has an initial
term through June 30, 2012, with annual renewal options for the period
July 1, 2012 through October 31, 2019. Under the contract, the Alaska
DOC will house up to 1,000 adult male inmates at the Facility, with an
agreed-upon 800-bed guarantee. The intake of approximately 850 inmates
is expected to commence in late November 2009 and be completed by late
December 2009.

James E. Hyman, Cornell's chairman, president and chief executive
officer, said, "We are very pleased to have received this contract from
our Alaska customer, and look forward to the successful ramp of their
inmates at our Hudson facility by the end of this year. By activating
the facility sooner than previously forecast, we will incur additional
net start-up costs across the third and fourth quarters of 2009 of
approximately eleven cents per share. These additional net start-up
costs would otherwise have occurred primarily during the first quarter
of 2010. The impact per share will be approximately one to two cents
per share in the third quarter and nine to ten cents per share in the
fourth quarter. We will provide updated guidance for the fourth quarter
and full year earnings as part of our third quarter earnings call that
we anticipate having in early November. On that call, we will address
the net start-up costs and any other matters affecting our forecast. We
believe that activating Hudson by the end of 2009 will establish a
strong platform to grow earnings in 2010."

Forward-Looking Statements

Statements regarding the anticipated population and operating revenues
at the Facility, completion of construction at the Facility,
anticipated financial impacts, as well as any other statements that are
not historical facts, are forward-looking statements within the meaning
of applicable securities laws that involve certain risks, uncertainties
and assumptions. These include but are not limited to risks and
uncertainties associated with general economic and market conditions,
including the impact governmental budgets can have on our per diem
rates and occupancy, Cornell's ability to perform according to its
current expectations, changes in supply and demand, and other third
parties, access to capital and other risks and uncertainties detailed
in the Company's most recent Form 10-K and other filings made by us
from time to time with the Securities and Exchange Commission, which
are available free of charge on the SEC's Web site at www.sec.gov.
Should one or more of these risks or uncertainties materialize, or
should underlying assumptions prove incorrect, actual results may vary
materially from the statements made. All information set forth in this
release is current as of the date of this release. Cornell undertakes
no duty to update any statement in light of new information or future
events.

About Cornell Companies

Cornell Companies, Inc. (http://www.cornellcompanies.com) is a leading
private provider of corrections, treatment and educational services
outsourced by federal, state and local governmental agencies. Cornell
provides a diversified portfolio of services for adults and juveniles,
including incarceration and detention, transition from incarceration,
drug and alcohol treatment programs, behavioral rehabilitation and
treatment, and grades 3-12 alternative education in an environment of
dignity and respect, emphasizing community safety and rehabilitation in
support of public policy. At September 30, 2009, the Company had 70
facilities in 15 states and the District of Columbia and a total
service capacity of 20,892.

The Cornell Companies, Inc. logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=1468

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