Correctional Properties Trust Receives Written Notice From the State of North Carolina to Exercise Options to Purchase Facilitie

Correctional Properties Trust Receives Written Notice From the
State of North Carolina to Exercise Options to Purchase Facilities 


PALM BEACH GARDENS, Fla., July 19  /PRNewswire-FirstCall/ -- Correctional
Properties Trust (NYSE:CPV), a real estate investment trust (REIT), announced
that it has received written notice from the State of North Carolina (the
"State") to exercise its option to purchase the Mountain View Correctional
Facility and the Pamlico Correctional Facility (the "Facilities"), both of
which are owned by a subsidiary of Correctional Properties Trust, and leased to
the State.  Correctional Properties Trust previously announced that elected
officials of the State had approved a resolution on July 6, 2004, giving
preliminary approval for issuing State debt, the proceeds of which would be
used to acquire the Facilities.

The Facilities were purchased in 2001 from an unrelated third party, subject to
existing leases on each property.  As previously disclosed, each of the leases
contained an option under which the State may acquire the Facilities for a
predetermined purchase price, which declines each year.  The options may be
exercised annually beginning in 2004.  The options provide for the acquisition
of the Pamlico Correctional Facility beginning in August 2004 for approximately
$25.2 million, and the Mountain View Correctional Facility beginning in
December 2004, for approximately $26.2 million.

On an annualized basis, each of the Facilities currently contributes
approximately 3.5 cents in net income per diluted share.  If the State acquires
both Facilities in 2004, depending on timing and other variables, the Company
would expect to recognize a combined gain on the sale of the Facilities of
approximately $5 million for financial reporting purposes.  The net proceeds of
a sale of one or both of the Facilities are required to be used to redeem the
taxable mortgage revenue bonds (the "Bonds") at par, which were issued in 2001
to finance the Facilities.  If the State acquires both Facilities in 2004, the
Company expects to have excess sales proceeds of approximately $2 million,
following the redemption of all the Bonds.

Correctional Properties Trust, based in Palm Beach Gardens, Florida, was formed
in February 1998, to capitalize on the growing trend toward privatization in
the corrections industry.  Correctional Properties Trust is dedicated to
ownership of correctional facilities under long-term, triple-net leases, which
minimizes occupancy risk and development risk.

Correctional Properties Trust currently owns 14 correctional facilities in ten
states, all of which are leased, with an aggregate initial design capacity of
8,008 beds.

This press release contains forward-looking statements regarding future events
and future performance of the Company that involve risks and uncertainties that
could materially affect actual results. This information is qualified in its
entirety by cautionary statements and risk factors disclosure contained in
certain of the Company's Securities and Exchange Commission filings. For a
description of certain factors that could cause actual results to vary from
current expectations and forward-looking statements contained in this press
release, refer to documents that the Company files from time to time with the
Securities and Exchange Commission. Such filings include, without limitation,
the Company's Form 10-K, Forms 10-Q, Registration Statements on Form S-11 and
S-3, and Form 8-K.

CONTACT: Correctional Properties Trust Shareholder Services, [phone], or
access Company information at http://www.correctionalpropertiestrust.com/ 

Web site:  http://www.CorrectionalPropertiesTrust.com

DATASOURCE: Correctional Properties Trust



CONTACT:  Correctional Properties Trust Shareholder Services,

[phone]

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