EXHIBIT 99.1




     Contact: Karin Demler (615) 263-3005

       SETTLEMENT CLAIMS PROCESS COMPLETED IN FINAL SETTLEMENT OF FEDERAL
      PORTION OF CORRECTIONS CORPORATION OF AMERICA STOCKHOLDER LITIGATION

     SETTLEMENT CLAIMS PROCESS FOR STATE PORTION EXPECTED TO BE COMPLETED IN
                         FIRST OR SECOND QUARTER OF 2002

NASHVILLE, Tenn., January 2, 2002 - Corrections Corporation of America (NYSE:
CXW) announced today that the settlement claims process has been completed in
connection with the final settlement of previously outstanding stockholder
litigation brought in federal court against the Company and certain of its
current and former directors and executive officers. The settlement claims
process for the settlement of the remaining state court litigation is currently
expected to be completed during the first or second quarter of 2002.

As a result of the completion of the claims process in the federal stockholder
litigation settlement, the Company has issued approximately 2.79 million shares
of its common stock to the eligible claimants under the terms of the settlement.
The Company's transfer agent and registrar, American Stock Transfer & Trust
Company, has commenced the distribution of the shares of common stock, and it is
anticipated that certificates representing the shares will be delivered to the
claimants over the course of the next several weeks. In addition, pursuant to
the terms of the settlement, the Company has issued a $26.1 million subordinated
promissory note payable to the eligible claimants in the event the Company's
common stock does not achieve certain trading prices prior to the maturity of
the note on January 2, 2009. According to the settlement claims administrator,
Gilardi & Co. LLC, approximately $27 million in cash insurance proceeds will
also be distributed to the eligible claimants early in the first quarter of 2002
as part of the settlement.

Upon the completion of the settlement claims process in the state stockholder
litigation, it is anticipated that the Company will issue approximately 310,000
additional shares of common stock to the eligible state class claimants. The
Company will also issue a $2.9 million subordinated promissory note payable to
the eligible claimants similar to the note issued in the federal settlement.
Approximately $3.1 million in cash insurance proceeds will also be distributed
to the eligible state class claimants.

As previously disclosed by the Company, during the first quarter of 2001 the
Company obtained final court approval of the settlement of a series of
consolidated federal and state class action and derivative stockholder lawsuits.
The final terms of the settlement agreements provided for the "global"
settlement of all such outstanding stockholder litigation against the Company.
Pursuant to the terms of the settlements, the Company agreed to issue or pay to
the plaintiffs (and their respective legal counsel) in the actions: (i) an
aggregate of approximately 4.7 million shares of the Company's common stock (on
a post-reverse stock split basis); (ii) an aggregate $29 million subordinated
promissory note; and (iii) approximately $47 million in cash payable solely from
the proceeds of certain insurance policies. The Company has previously paid
approximately $17.1 million of the insurance proceeds and issued approximately
1.6 million shares under the terms of the settlement to plaintiffs' counsel in
the federal and state actions.

The promissory note issued by the Company in the federal settlement is due
January 2, 2009 and accrues interest at a rate of 8.0% per year. Principal under
the note and accrued interest may be extinguished if the Company's common stock
price meets or exceeds a "termination price" equal to $16.30 per share for any
fifteen consecutive trading days following the date of the note's issuance and
prior to the maturity date of the note. Additionally, to the extent the
Company's common stock price does not meet the termination price, the note will
be reduced by the amount that the shares of common stock issued to the




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CXW Settlement Claims Process Completed
  in Final Settlement
Page 2
January 2, 2002


plaintiffs appreciate in value in excess of $4.90 per share, based on the
average trading price of the stock following the date of the note's issuance and
prior to the maturity of the note. The note to be issued in the state settlement
will also be due January 2, 2009 and accrue interest at a rate of 8.0% per
annum. Similar to the federal settlement note, principal under the note and
accrued interest may be extinguished if the Company's common stock price meets
or exceeds the $16.30 termination price per share for any fifteen consecutive
trading days following the date of the note's issuance and prior to its
maturity. To the extent the Company's common stock price does not meet the
termination price, the note will also be reduced by the amount that the shares
of common stock issued in the state settlement appreciate in value in excess of
$4.90 per share, based on the average trading price of the stock following the
date of the note's issuance and prior to its maturity.

ABOUT THE COMPANY

The Company is the nation's largest provider of outsourced corrections
management services, housing an inmate population larger than that of all but
five public correctional systems in the United States. The Company specializes
in owning, operating and managing prisons and other correctional facilities and
providing inmate residential and prisoner transportation services for
governmental agencies. In addition to providing the fundamental residential
services relating to inmates, each of the Company's facilities offers a variety
of rehabilitation and educational programs, including basic education, life
skills and employment training and substance abuse treatment. The Company also
provides health care (including medical, dental and psychiatric services),
institutional food services and work and recreational programs. The Company owns
or manages 70 facilities, including 68 correctional and detention facilities,
with a total design capacity of approximately 65,000 beds in 21 states, the
District of Columbia and Puerto Rico, of which 68 facilities are operating (two
of which are idle) and two are under construction.

FORWARD-LOOKING STATEMENTS

This press release contains statements that are forward-looking statements as
defined within the Private Securities Litigation Reform Act of 1995. These
forward-looking statements are subject to risks and uncertainties that could
cause actual results to differ materially from the statements made. Factors that
could cause operating and financial results to differ are described in the
Company's Form 10-K, as well as in other documents filed with the Securities and
Exchange Commission, and these factors include, but are not limited to, the
growth of the private corrections and detention industry, the Company's ability
to obtain and maintain facility management contracts and general market
conditions. The Company does not undertake any obligation to publicly release
the result of any revisions to forward-looking statements that may be made to
reflect events or circumstances after the date hereof or to reflect the
occurrence of unanticipated events.

The Company takes no responsibility for updating the information contained in
this press release following the date hereof or for any changes or modifications
made to this press release or the information contained herein by any third
parties, including, but not limited to, any wire or Internet services.


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