HOUSTON, April 16, 2007 (PRIME NEWSWIRE) -- Cornell Companies, Inc. (NYSE:CRN) announced today that it has entered into an agreement with GRW Corporation to acquire GRW's Brush Correctional Facility in Brush, Colorado. The Brush Correctional Facility currently houses approximately 270 medium-security female inmates under an Intergovernmental Agreement with the City of Brush and the Colorado Department of Corrections.
Cornell expects to close the transaction during the second quarter of 2007, subject to closing conditions that include Cornell's entry into an operating agreement with the City of Brush with respect to the facility and the City's underlying agreement with the Colorado Department of Corrections.
James E. Hyman, Cornell's chairman and chief executive officer, stated, "We are pleased to announce this transaction, as it indicates our commitment to serving the needs of the Colorado Department of Corrections. The GRW program is an incremental addition to the contract we were awarded by the Colorado Department of Corrections in June 2006."
About Cornell Companies
Cornell Companies, Inc. 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. The Company (www.cornellcompanies.com) has 79 facilities in 16 states and the District of Columbia with a total service capacity of 18,477.
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Statements regarding the acquisition of the correctional facility, the timing of the acquisition, commencement of operations, 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 the ability to enter into the necessary operating agreements for the facility, satisfaction of other closing conditions, actions by third parties and other factors detailed in the company's most recent Form 10-K and other filings with the Securities and Exchange Commission, which are available free of charge on the SEC's website at http://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 those indicated.