Cornell Companies Names Vince Mouer Corporate Counsel And Secretary

Business Wire, August 26, 2003

Business Editors

HOUSTON--(BUSINESS WIRE)--Aug. 26, 2003

Cornell Companies Inc. (NYSE:CRN) today named Vince Mouer corporate counsel and secretary of the corporation.

"Vince Mouer is an outstanding addition to Cornell's management team," said Harry J. Phillips Jr., chairman and chief executive officer. Phillips continued, "Cornell's growth and its core business with government agencies places a high premium on quality legal counsel. Vince's many years of legal experience in commercial and securities law and corporate governance will be invaluable as we move forward."

Mouer comes to Cornell from his position as general counsel for ProTrader Group, L.P. Prior to that he was in private practice as a shareholder in the firm of Kuperman, Orr, Mouer & Albers, P.C. in Austin, Texas. His experience includes a wide range of commercial transactions and practices including mergers & acquisitions, public and private securities offerings, periodic reporting for publicly traded companies, financial and stock transactions and corporate governance.

Mouer was a Phi Beta Kappa graduate of the University of Texas with a bachelor's degree in 1981. In addition to his J.D. from the University of Texas Law School, he holds an M.B.A. from the University of Texas Graduate School of Business.

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. Cornell (http://www.cornellcompanies.com) has contracts to operate 70 facilities with a total service capacity of 16,514 individuals. Cornell's facilities are located in 14 states and the District of Columbia.

This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on current plans and actual future activities and results of operations may be materially different from those set forth in the forward- looking statements. Important factors that could cause actual results to differ include, among others, (i) the outcomes of pending putative class action shareholder and derivative lawsuits, and related insurance coverage (ii) risks associated with acquisitions and the integration thereof (including the ability to achieve administrative and operating cost savings and anticipated synergies), (iii) the timing and costs of expansions of existing facilities, (iv) changes in governmental policy to eliminate or discourage the privatization of correctional, detention and pre- release services in the United States, (v) the availability of debt and equity financing on terms that are favorable to the Company, (vi) fluctuations in operating results because of occupancy, competition (including competition from two competitors that are substantially larger than the Company), increases in cost of operations, fluctuations in interest rates and risks of operations, (vii) significant charges to expense of deferred costs associated with financing and other projects in development if management determines that one or more of such projects is unlikely to be successfully concluded, (viii) results from alternative deployment or sale of facilities such as the New Morgan Academy, and (ix) the Company's ability to negotiate a contract amendment with the BOP related to the Moshannon Valley Correctional Center.