The GEO Group Announces Opening of 654-Bed Maverick County Detention Center in Texas and Closure of U.K. Transportation Division, Recruitment Solutions International

The GEO Group (NYSE:GEO) ("GEO”) announced today the opening of the 654-bed Maverick County Detention Center (the "Center”) located in Eagle Pass, Texas. The county-owned Center will primarily house detainees for the U.S. Marshals Service and the Federal Bureau of Prisons. GEO manages the Facility under a management agreement with Maverick County, Texas. GEO expects to complete the intake of detainees at the Center at the end of the first quarter of 2009. At full occupancy, the Center is expected to generate approximately $10.0 million in annualized operating revenues for GEO.

GEO also announced today the closure of its U.K.-based transportation division, Recruitment Solutions International ("RSI”), which will have no material impact on GEO’s future financial performance. GEO purchased RSI, which provided transportation services to The Home Office Nationality and Immigration Directorate, for approximately $2.0 million in 2006. During the thirty-nine weeks ended September 28, 2008, RSI generated approximately $1.4 million in revenues. GEO expects to incur a one-time expense, which will be adjusted in GEO’s pro forma earnings, associated with the non-cash write-off of approximately $2.5 million, pre-tax, in RSI-related assets.

George C. Zoley, Chairman of the Board and Chief Executive Officer of GEO, said, "We are pleased with the successful completion and opening of the 654-bed Maverick County Detention. We look forward to the successful ramp-up of the Facility and to building on our partnership with the U.S. Marshals Service, the Federal Bureau of Prisons, and Maverick County, Texas.

"Today, we have also announced our decision to close our U.K.-based transportation division, Recruitment Solutions International due to financial underperformance. As we exit this noncore market segment, we will be redirecting our company’s operational and financial resources to pursue core business opportunities in the United Kingdom and elsewhere. We feel this is the right decision toward further enhancing shareholder value in GEO,” Zoley added.

The GEO Group, Inc. ("GEO") is a world leader in the delivery of correctional, detention, and residential treatment services to federal, state, and local government agencies around the globe. GEO offers a turnkey approach that includes design, construction, financing, and operations. GEO represents government clients in the United States, Australia, South Africa, and the United Kingdom. GEO’s worldwide operations include the management and/or ownership of 66 correctional and residential treatment facilities with a total design capacity of approximately 64,000 beds, including projects under development.

This press release contains forward-looking statements regarding future events and future performance of GEO that involve risks and uncertainties that could materially affect actual results, including statements regarding estimated earnings, revenues and costs and our ability to maintain growth and strengthen contract relationships. Factors that could cause actual results to vary from current expectations and forward-looking statements contained in this press release include, but are not limited to: (1) GEO’s ability to successfully pursue further growth and continue to enhance shareholder value; (2) GEO’s ability to access the capital markets in the future on satisfactory terms or at all; (3) risks associated with GEO’s ability to control operating costs associated with contract start-ups; (4) GEO’s ability to timely open facilities as planned, profitably manage such facilities and successfully integrate such facilities into GEO’s operations without substantial costs; (5) GEO’s ability to win management contracts for which it has submitted proposals and to retain existing management contracts; (6) GEO’s ability to obtain future financing on acceptable terms; (7) GEO’s ability to sustain company-wide occupancy rates at its facilities; and (8) other factors contained in GEO’s Securities and Exchange Commission filings, including the forms 10-K, 10-Q and 8-K reports.