CPV Cbs Corp. New Senior Notes

PALM BEACH GARDENS, Fla., May 12 /PRNewswire-FirstCall/ -- CentraCore Properties Trust (NYSE:CPV), a real estate investment trust (the "Company" or "CPT"), announced today it has closed a transaction with Community Education Centers, Inc. ("CEC") for a 286-bed expansion of its Delaney Hall Facility in Newark, N.J., which is currently owned by the Company and leased to CEC. Delaney Hall is an urban-based, secure, pre-release treatment facility which has become a model for delivering vital education and training to inmates prior to reentering society. The 286-bed expansion will include administrative areas, and will add approximately 40,000 square feet to the Facility at an expected cost of approximately $13,000,000. Delaney Hall will continue operations during the construction of the expansion, which is expected to be completed during the third quarter of 2007. Including the expansion, the Company will own the entire 1,012-bed facility which will continue to be leased to and operated by CEC. "Community Education Centers continues to distinguish itself in providing housing, education and substance abuse treatment to prepare former inmates to return to their communities, and we are pleased to be partnering with CEC on this project," said Charles R. Jones, president and chief executive officer of CPT. "Expanding existing facilities is the most efficient means of increasing correctional or training capacity, particularly given escalating new construction costs and the difficulty of obtaining use permits and zoning for new urban-based facilities." CPT will provide the capital for the new 286-bed expansion and related improvements, however, incur no direct construction risk or construction management responsibility in connection with the expansion. The architects, engineers and construction-related professionals have been selected, engaged and supervised by CEC, which has extensive experience and has demonstrated its expertise in the development and construction of many correctional/treatment facilities. In this transaction, CPT will also reimburse CEC for approximately $566,000 in prior improvements that CEC previously made to increase the security level and operational efficiency of Delaney Hall. CEC is currently paying CPT a lease rate of 11.67 percent on the original 726-bed facility. Although that rate will remain unchanged as a result of this transaction, the reimbursement for $566,000 in improvements and capital invested in the new 286-bed expansion will have an initial rate of 9.9 percent. This is expected to result in a blended rate for the 1,012-bed facility of approximately 11.41 percent with lease rate escalators at 3 percent annually, once the expansion is completed. Rental payments related to the reimbursement for existing improvements begin immediately. The lease maturity date on the existing 726-bed facility between CEC and CPT has been amended. CEC had approximately seven years remaining on its original 10-year lease with CPT prior to this amendment. The lease has been amended to provide a maturity date of 10 years on the entire facility, beginning the date upon which the new 286-bed expansion is completed. CentraCore Properties Trust, based in Palm Beach Gardens, Fla., was formed in February 1998 to capitalize on the growing trend toward privatization in the corrections industry. CPT has expanded its scope to include essential purpose government real estate projects outside the corrections sector, including mental health and higher education facilities. CPT is dedicated to ownership of properties under long-term, triple-net leases, which minimizes occupancy risk and development risk. CPT currently owns 13 correctional facilities in nine states, all of which are leased, with an aggregate completed design capacity of 7,556 beds. This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 regarding future events and future performance of the Company that involve risks and uncertainties that could materially affect actual results. Such forward- looking statements are made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995 and are qualified in their 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 the Company's Form 10-K for the fiscal year ended December 31, 2005 and subsequent periodic reports. The Company assumes no obligation to update or supplement forward- looking statements that become untrue because of subsequent events. Contact: CentraCore Properties Trust Shareholder Services (561) 630-6336, or access Company information at http://www.centracorepropertiestrust.com/ DATASOURCE: CentraCore Properties Trust CONTACT: CentraCore Properties Trust Shareholder Services, +1-561-630-6336 Web site: http://www.centracorepropertiestrust.com/

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