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|The GEO Group Comments on Cancellation of CAR 9|
BOCA RATON, Fla., Mar 02, 2010 (BUSINESS WIRE) -- The GEO Group (NYSE:GEO) ("GEO") commented today on the cancellation by the Federal Bureau of Prisons ("BOP") of the Criminal Alien Requirement 9 Solicitation ("CAR 9"). GEO had submitted its expanded 1,755-bed North Lake Correctional Facility (the "Facility") in Baldwin, Michigan under the CAR 9 Solicitation. GEO had undertaken a 1,225-bed expansion of the existing 530-bed Facility, and the expansion is expected to be completed in 2010.
George C. Zoley, Chairman and Chief Executive Officer of GEO, said, "We are disappointed by the BOP's decision to cancel the CAR 9 Solicitation due to a funding shortfall. The BOP is a valued client of GEO's, and we look forward to continuing our partnership with the agency at our existing BOP contracted facilities. We will continue to market our expanded North Lake Facility to federal, state, and local detention and correctional agencies around the country."
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 62 correctional and residential treatment facilities with a total design capacity of approximately 60,000 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.
SOURCE: The GEO Group
The GEO Group