Correctional Services Corporation Awarded 1000 Bed Contract by Arizona Department of Corrections to Design, Build and Operate a

  Contract Expected to Generate Approximately $22 Million in Revenue
                               Annually

   Correctional Services Corporation (NASDAQ:CSCQ) today
announced it was awarded a contract by the Arizona Department of
Corrections (ADC) to design, build and operate a 1000 bed sex offender
prison to be located in Florence Arizona.
   The term of the contract is for 20 years, which includes an
initial base period of 10 years with 2 five (5) year renewal options.
It is expected the contract will generate revenues of approximately
$22 million in its first full year of operations. The contract has a
guaranteed occupancy of 90% and is expected to be operational in the
fourth quarter 2006.
   The contract calls for the Company to operate a specialized
program for up to 1000 adult male medium risk sex offenders in a
secure environment that protects the public while providing
specialized programs and treatment services to include comprehensive
behavioral modification programs, education and institutional work
programs.
   Commenting on the contract award, James F. Slattery, President and
CEO, stated, "I am delighted that the Arizona Department of
Corrections has selected the Company to design, build and operate this
important project. I believe that we were selected as the contractor
for this competitively bid project because of the innovative
rehabilitative program our team has designed and our track record of
providing quality services and programming for the Department during
the past 9 years at the Phoenix, Florence, and Newton facilities. We
look forward to working with the Department on this project."
   Slattery further stated, "This will be our third design, build and
operate project with the state and once operational will bring our bed
capacity under management with ADC to 2800. The facility will be built
adjacent to our existing 750 bed DUI and Return to Custody facility in
Florence."

   SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION
REFORM ACT OF 1995

   Certain statements contained in this press release are not
historical but are forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933, as amended and Section 21E
of the Securities Exchange Act of 1934, as amended. These include
statements regarding the expectations, beliefs, intentions or
strategies regarding the future. The Company intends that all
forward-looking statements be subject to the safe-harbor provisions of
the Private Securities Litigation Reform Act of 1995. These
forward-looking statements reflect the Company's views as of the date
they are made with respect to future events and financial performance,
but are subject to many uncertainties and risks which could cause the
actual results of the Company to differ materially from any future
results expressed or implied by such forward-looking statements.
Examples of such uncertainties and risks include, but are not limited
to: fluctuations in occupancy levels and labor costs; the ability to
secure both new contracts and the renewal of existing contracts; the
possibility of unforeseen costs relating to facility closings, the
ability to achieve profitability and public resistance to
privatization; ability to obtain construction financing; and ability
to complete new construction projects within budgeted amounts.
Additional risk factors include those discussed in reports filed by
the Company from time to time on Forms 10-K, 10-Q and 8-K. The Company
does not undertake any obligation to update any forward-looking
statements