EXHIBIT 99.1

    Karin Demler - (615) 263-3005


         CORRECTIONS CORPORATION OF AMERICA REACHES SETTLEMENT WITH IRS
                  WITH RESPECT TO 1997 FEDERAL INCOME TAX AUDIT

NASHVILLE, Tenn., October 28, 2002 -- Corrections Corporation of America (NYSE:
CXW) announced today that it has entered into a definitive settlement agreement
with the IRS in connection with the previously disclosed IRS audit of CCA's
predecessor's 1997 federal income tax return. Under the terms of the settlement,
in consideration for the IRS's final determinations with respect to the 1997 tax
year, CCA will pay approximately $54 million in cash to satisfy federal and
state taxes and interest, substantially all of which will be paid during the
fourth quarter of 2002. CCA intends to satisfy this obligation through the use
of cash on hand. CCA's consolidated cash balance as of September 30, 2002 was
$101.8 million.

Pursuant to the terms of the settlement, the audit adjustments agreed to for the
1997 tax year will not trigger any additional distribution requirements by CCA
in order to preserve its status as a real estate investment trust for federal
income tax purposes for 1999. The adjustments will, however, serve to increase
CCA's accumulated earnings and profits in 2002 and therefore may affect the
taxability of dividends paid by CCA on its Series A and Series B Preferred Stock
in 2002 and later years.

Based on the terms of the settlement and CCA's current estimates of its taxable
income for 2002, the settlement is not expected to result in either a material
tax benefit or tax expense to CCA for 2002.

"We are pleased with the final resolution of this matter with the IRS," said
Irving E. Lingo, Jr., CCA's executive vice president and chief financial
officer. "We believe that the settlement reached with the IRS is in the best
interests of the company and its stockholders as it removes a significant
contingency, allowing management to continue to focus its attention on the
growth of the business. In addition, due to the Job Creation and Worker
Assistance Act of 2002, the settlement will create an opportunity for the
company to utilize its anticipated 2002 tax losses to claim a refund of a
currently indeterminate portion of the taxes to be paid."

CCA is continuing to appeal the IRS's findings with respect to its previously
disclosed audits of CCA's predecessor's 1998 federal income tax return and CCA's
2000 federal income tax return. CCA does not currently expect that the
resolution of the 1998 IRS audit will have a material adverse effect on CCA's
liquidity or results of operations. As previously disclosed by CCA, with respect
to the 2000 IRS audit, CCA believes that it has meritorious defenses against the
IRS's positions and has not established a reserve for the matter. No assurance
can be given, however, that the IRS will not prevail in any claims against CCA
in connection with the 2000 audit.






ABOUT CCA

CCA is the nation's largest owner and operator of privatized correctional and
detention facilities and one of the largest prison operators in the United
States, behind only the federal government and four states. CCA currently owns
40 correctional, detention and juvenile facilities, three of which are leased to
other operators, and one additional facility which is not yet in operation. CCA
currently operates 60 facilities (including the McRae, Georgia facility which is
anticipated to commence full operations in December 2002), with a total design
capacity of approximately 59,000 beds in 21 states and the District of Columbia.
CCA 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, CCA facilities offer a variety of rehabilitation
and educational programs, including basic education, religious services, life
skills and employment training and substance abuse treatment. These services are
intended to reduce recidivism and to prepare inmates for their successful
re-entry into society upon their release. CCA also provides health care
(including medical, dental and psychiatric services), food services and work and
recreational programs.

FORWARD-LOOKING STATEMENTS

Certain of the disclosures contained herein constitute forward-looking
statements, which are based on, among other things, preliminary projections of
the results and financial condition of CCA for the year-ended December 31, 2002.
While CCA believes its forecasts and assumptions are reasonable, it cautions
that actual results may differ materially from these forward-looking statements.
CCA intends these forward-looking statements to speak only as of the time of
this press release and 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.