Cornell Companies' Plankinton Regional Detention Center Scheduled to Open May 3

Business Wire, March 30, 2004

Business Editors

HOUSTON--(BUSINESS WIRE)--March 30, 2004

Cornell Companies Inc. (NYSE:CRN) announced today that the Plankinton Regional Detention Center in Plankinton, S.D. is scheduled to open May 3, 2004. The 40-bed juvenile facility will generate $2 million in annualized revenue when operations reach capacity.

The execution of a management agreement and a signed lease were the final hurdles to beginning the program start-up process.

Thomas R. Jenkins, Jr., president and chief operating officer, commented, "This project is an ideal addition to Cornell's portfolio of juvenile services and supports our strategic growth plan in this field. We are delighted with the partnership that we have developed with the Plankinton community and South Dakota state officials and we thank them for their

support and encouragement on this project."

The state of South Dakota, the Training School Campus Development Corp., a Plankinton community group that formed to lease the former State Training School from the state, and Aurora County entered into the management and lease agreements with Cornell.

Cornell will also open a 70-bed residential treatment center on the campus grounds. The licensing process with the South Dakota Department of Social Services is in progress with an anticipated start date in August. Once the program is operating at capacity, it will generate an additional $5 million in annualized revenue.

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 72 facilities with a total service capacity of 16,457. Cornell's facilities are located in 15 states and the District of Columbia.

This press release contains 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) the outcome of the pending SEC investigation (iii) risks associated with acquisitions and the integration thereof (including the ability to achieve administrative and operating cost savings and anticipated synergies), (iv) the timing and costs of the opening of new programs and facilities or the expansions of existing facilities, (v) changes in governmental policy and/or funding to discontinue or not renew existing arrangements, to eliminate or discourage the privatization of correctional, detention and pre-release services in the United States, or to eliminate rate increases. (vi) the availability of debt and equity financing on terms that are favorable to the Company, (vii) 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, (viii) 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, (ix) results from alternative deployment or sale of facilities such as the New Morgan Academy or the inability to do so and (x) the Company's ability to negotiate a contract amendment with the BOP related to the Moshannon Valley Correctional Center.