NASHVILLE, Tenn., Jan. 25 /PRNewswire/ -- Prison Realty Trust, Inc.
(NYSE: PZN) today announced that Corrections Corporation of Australia has signed a five-year contract with Court Security and Custodial Services of the Western Australia government to provide prisoner transportation, court custody and court security. The initial contract, which also provides for two three-year renewal options, is expected to generate approximately $7.9 million in annual revenues.
The contract is expected to begin in July 2000. By the end of 2001, Corrections Corporation of Australia expects to provide transportation and custodial services for all major law enforcement agencies throughout Western Australia.
"As seen by today's announcement, the international arm of Prison Realty Trust continues to garner contracts and expand its services to foreign governments, particularly in Australia," said Tom Beasley, interim chairman of the company. "We believe this growth is further evidence that privatization of public services in both the domestic and international arenas will increase."
The delivery of the program will require 300 staff in 19 separate locations and a fleet of 40 vehicles. Corrections Corporation of Australia will incorporate the most current security and tracking technology, including satellite phones and real time GPS location systems, in its program delivery. In addition, the government will have online real time access to the operation to ensure accountability for Western Australian officials and citizens.
Corrections Corporation of Australia is an affiliate of one of the privately held service companies, which does business as Corrections Corporation of America, of which Prison Realty Trust Inc. has a 95% equity ownership interest.
Corrections Corporation of America provides detention and corrections services for governmental agencies. The company is the industry leader in private sector corrections with more than 73,000 beds in 79 facilities under contracts in the United States, Puerto Rico, Australia and the United Kingdom. The company's full range of services includes finance, design, construction, renovation and management of new or existing jails and prisons, as well as long-distance inmate transportation services.
Prison Realty's business is the ownership of correctional and detention facilities. The Company provides financing, design, construction and renovation of new and existing jails and prisons that it leases to both private and governmental managers. Prison Realty currently owns or is in the process of developing 51 correctional and detention facilities in 17 states, the District of Columbia and the United Kingdom. Prison Realty, which is based in Nashville, Tennessee, has announced a restructuring which will, pending shareholder approval, result in the combination of the Company with the companies operating under the name Corrections Corporation of America. The combined company, which would operate under the Corrections Corporation of America name, is expected to be a taxable subchapter C corporation, as Prison Realty would terminate its status as a REIT in connection with the restructuring. Pending shareholder approval, Prison Realty expects that upon the completion of the restructuring, it will issue up to $350 million in convertible securities to a group of investors.
This news release contains statements that are forward-looking, including statements relating to the amount and timing of the proposed offering transactions. These statements are not projections or assured results. Actual results may differ materially from the results anticipated in the forward looking statements due to a variety of factors, including but not limited to, changing market conditions. Additional factors will be described in the company's filings with the SEC. The company does not undertake an obligation to update its forward-looking statements to reflect future events or circumstances. Accordingly, individuals should not place undue reliance on such statements. SOURCE Prison Realty Trust, Inc.