EX-99.1 Press Release

Exhibit 99.1

THE GEO GROUP REPORTS FOURTH QUARTER 2007 RESULTS

•		4Q GAAP Income from Continuing Operations Increased to $11.5 Million — $0.22 EPS

•		4Q Pro-Forma Income from Continuing Operations Increased to $14.1 Million — $0.27 EPS

•		4Q Revenue Increased to $262.6 Million from $247.4 Million

•		GEO Maintains 2008 Pro Forma Earnings Guidance of $1.27 to $1.35 EPS

Boca Raton, Fla. — February 13, 2008 — The GEO Group (NYSE: GEO) (“GEO”) today reported fourth quarter and full-year 2007 financial results. All financial results in this press release have been adjusted to reflect the effect of GEO’s June 1, 2007 2-for-1 stock split as well as GEO’s October 2, 2006 3-for-2 stock split.

GEO reported fourth quarter 2007 GAAP Income from Continuing Operations of $11.5 million, or $0.22 per share, based on 51.8 million diluted weighted average shares outstanding, compared to $10.5 million, or $0.26 per share, based on 40.3 million diluted weighted average shares outstanding in the fourth quarter of 2006. For the full-year 2007, GEO reported GAAP Income from Continuing Operations of $41.3 million, or $0.84 per share, based on 49.2 million diluted weighted average shares outstanding compared to $30.3 million, or $0.85 per share, based on 35.7 million diluted weighted average shares outstanding in 2006.

Fourth quarter 2007 Pro Forma Income from Continuing Operations increased to $14.1 million, or $0.27 per share, based on 51.8 million diluted weighted average shares outstanding, from Pro Forma Income from Continuing Operations of $10.7 million, or $0.26 per share, based on 40.3 million diluted weighted average shares outstanding in the fourth quarter of 2006. For the full-year 2007, Pro Forma Income from Continuing Operations increased to $51.5 million, or $1.05 per share, on 49.2 million diluted weighted average shares outstanding, from Pro Forma Income from Continuing Operations of $32.4 million, or $0.91 per share, based on 35.7 million diluted weighted average shares outstanding in 2006. GEO’s fourth quarter 2007 pro forma earnings results exclude $1.3 million, or $0.02 per share, in after-tax start-up expenses; $0.4 million, or $0.01 per share, in after-tax phase-out expenses related to the discontinuation of the 200-bed Coke County Juvenile Justice Center and the 489-bed Dickens County Correctional Center in Texas; and $0.8 million, or $0.02 per share associated with the write-off of deferred acquisition expenses.

George C. Zoley, Chairman and Chief Executive Officer of GEO, said: “We are very pleased with our fourth quarter and year-end results. During 2007, our Company experienced the best operational and financial year in its history. Our strong operational and financial performance validates our diversified growth strategy through our three business units of U.S. Corrections, International Services, and GEO Care. We continue to have a strong pipeline of projects under development, and we remain very optimistic about the new business development opportunities our Company is pursuing through our three business units. Our robust project pipeline and our strong operational structure will continue to drive our growth in 2008 and beyond.”

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Pro Forma Income from Continuing Operations excludes the items set forth in the table below, which presents a reconciliation of pro forma income from continuing operations to GAAP Income from Continuing Operations for the fourth quarter and full-year 2007. Please see the section of this press release below entitled “Important Information on GEO’s Non-GAAP Financial Measures” for information on how GEO defines Pro Forma Income from Continuing Operations.

Table 1. Reconciliation of Pro Forma Income from Continuing Operations to GAAP Income from Continuing Operations


(In thousands except per share data)	13 Weeks Ended		13 Weeks Ended			52 Weeks Ended		52 Weeks Ended
	30-Dec-07		31-Dec-06			30-Dec-07		31-Dec-06
Income from continuing operations	$	11,477	$	10,537		$	41,265	$	30,308
Start-up expenses, net of tax		1,316		926			5,085		2,045
Construction cost overruns, net of tax		—		—			536		—
Contract phase out costs, net of tax		424		—			813		—
Write of deferred financing fees, net of tax		—		—			2,972		803
Deferred acquisition expenses, net of tax		844		—			844		—
International tax benefit, net of tax		—		(750	)		—		(750	)

Pro forma income from continuing operations	$	14,061	$	10,713		$	51,515	$	32,406


Diluted earnings per share
Income from Continuing Operations, net of tax	$	0.22	$	0.26		$	0.84	$	0.85
Start-up expenses, net of tax		0.02		0.02			0.10		0.06
Construction cost overruns, net of tax		—		—			0.01		—
Contract phase out costs, net of tax		0.01		—			0.02		—
Write of deferred financing fees, net of tax		—		—			0.06		0.02
Deferred acquisition expenses, net of tax		0.02		—			0.02		—
International tax benefit, net of tax		—		(0.02	)		—		(0.02	)

Diluted pro forma earnings per share	$	0.27	$	0.26		$	1.05	$	0.91


Weighted average shares outstanding		51,774		40,340			49,192		35,744

Revenue
GEO reported fourth quarter 2007 revenue of $262.6 million compared to $247.4 million in the fourth quarter of 2006. Exclusive of pass-through construction revenues, GEO reported fourth quarter 2007 operating revenues of $235.0 million. U.S. Corrections revenue for the fourth quarter of 2007 increased to $169.2 million from $161.5 million for the fourth quarter of 2006. International Services revenue for the fourth quarter of 2007 increased to $34.6 million from $28.7 million for the fourth quarter of 2006. GEO Care revenue for the fourth quarter of 2007 increased to $31.2 million from $20.2 million for the fourth quarter of 2006.

For the full-year 2007, GEO reported revenue of $1.02 billion compared to $860.9 million in 2006. Exclusive of pass-through construction revenues, GEO reported operating revenues of $916.0 million for the full-year 2007. U.S. Corrections revenue for the full-year 2007 increased to $672.0 million from $612.8 million in 2006. International Services revenue for the full-year 2007 increased to $130.3 million from $103.6 million in 2006. GEO Care revenue for the full-year 2007 increased to $113.8 million from $70.4 million in 2006.

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Adjusted EBITDA
Fourth quarter 2007 Adjusted EBITDA increased to $37.1 million from $25.2 million in the fourth quarter of 2006. Adjusted EBITDA for the full-year 2007 increased to $143.2 million from $91.2 million in 2006. Please see the section of this press release below entitled “Important Information on GEO’s Non-GAAP Financial Measures” for information on how GEO defines Adjusted EBITDA. The following table presents a reconciliation from Adjusted EBITDA to GAAP Net Income for the fourth quarter and full-year 2007.

Table 2. Reconciliation from Adjusted EBITDA to GAAP Net Income


(In thousands)	13 Weeks Ended		13 Weeks Ended		52 Weeks Ended			52 Weeks Ended
	30-Dec-07		31-Dec-06		30-Dec-07			31-Dec-06
Net income	$	11,477	$	10,515	$	41,845		$	30,031
Discontinued operations		—		22		(580	)		277
Interest expense, net		5,792		3,355		27,305			17,544
Income tax provision		6,696		5,363		24,226			16,505
Depreciation and amortization		8,939		4,467		33,870			22,235

EBITDA	$	32,904	$	23,722	$	126,666		$	86,592

Adjustments, pre-tax
Start-up expenses		2,122		1,494		8,203			3,298
Construction cost overruns		—		—		864			—
Contract phase out costs		685		—		1,313			—
Write of deferred financing fees		—		—		4,794			1,295
Deferred acquisition expenses		1,361		—		1,361			—

Adjusted EBITDA	$	37,072	$	25,216	$	143,201		$	91,185

Adjusted Free Cash Flow
Adjusted Free Cash Flow for the fourth quarter of 2007 increased to $19.5 million from $11.6 million for the fourth quarter of 2006. Adjusted Free Cash Flow for the full-year 2007 increased to $82.6 million from $51.5 million in 2006. Please see the section of this press release below entitled “Important Information on GEO’s Non-GAAP Financial Measures” for information on how GEO defines Adjusted Free Cash Flow. The following table presents a reconciliation from Adjusted Free Cash Flow to GAAP Income from Continuing Operations for the fourth quarter and full-year 2007.

Table 3. Reconciliation of Adjusted Free Cash Flow to GAAP Income from Continuing Operations


(In thousands)	13 Weeks Ended			13 Weeks Ended			52 Weeks Ended			52 Weeks Ended
	30-Dec-07			31-Dec-06			30-Dec-07			31-Dec-06
Income from Continuing Operations	$	11,477		$	10,537		$	41,265		$	30,308
Depreciation and Amortization		8,939			4,467			33,870			22,235
Income Tax Provision		6,696			5,363			24,226			16,505
Income Taxes Paid		(9,668	)		(2,199	)		(26,413	)		(11,336	)
Stock Based Compensation Included in G&A		1,035			424			3,409			1,341
Maintenance Capital Expenditures		(2,971	)		(8,049	)		(10,767	)		(10,665	)
Equity in Earnings of Affiliates, Net of Income Tax		(671	)		(538	)		(2,151	)		(1,576	)
Minority Interest		116			80			397			125
Amortization of Debt Costs and Other Non-Cash Interest		406			—			2,271			—
Write-off of Deferred Financing Fees		—			—			4,794			1,295
Start-up expenses		2,122			1,494			8,203			3,298
Construction cost overruns		—			—			864			—
Contract phase out costs		685			—			1,313			—
Deferred acquisition expenses		1,361			—			1,361			—

Adjusted Free Cash Flow	$	19,527		$	11,579		$	82,642		$	51,530

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Important Information on GEO’s Non-GAAP Financial Measures
Pro Forma Income from Continuing Operations, Adjusted EBITDA, and Adjusted Free Cash Flow are non-GAAP financial measures. Pro Forma Income from Continuing Operations is defined as Income from Continuing Operations excluding Start-Up Expenses, Construction Cost Overruns, Contract Phase-out Costs, Write-off of Deferred Financing Fees, and Write-off of Deferred Acquisition Expenses as set forth in Table 1 above. Adjusted EBITDA is defined as EBITDA excluding Start-Up Expenses, Construction Cost Overruns, Contract Phase-out Costs, Write-off of Deferred Financing Fees, and Write-off of Deferred Acquisition Expenses as set forth in Table 2 above. Adjusted Free Cash Flow is defined as Income from Continuing Operations after giving effect to the items set forth in Table 3 above. A reconciliation of these non-GAAP measures to the most directly comparable GAAP measurements of these items is included above in Tables 1, 2, and 3, respectively. GEO believes that these financial measures are important operating measures that supplement discussion and analysis of GEO’s financial results derived in accordance with GAAP. These non-GAAP financial measures should be read in conjunction with GEO’s consolidated financial statements and related notes included in GEO’s filings with the Securities and Exchange Commission.

2008 Financial Guidance
GEO is maintaining its previously-issued financial guidance for 2008. GEO is maintaining its 2008 operating revenue guidance in the range of $1.01 billion to $1.03 billion, excluding pass-through construction revenues, and its 2008 earnings guidance in the pro forma range of $1.27 to $1.35 per share, exclusive of $0.13 per share in after-tax start-up expenses associated with facility openings and $0.02 per share in after-tax bid and proposal expenses related to significant business development opportunities GEO is pursuing in the United Kingdom and South Africa.

GEO is maintaining its first quarter 2008 operating revenue guidance in the range of $240 million to $245 million, excluding pass-through construction revenues, and its first quarter 2008 earnings guidance in the pro forma range of $0.25 to $0.27 per share, excluding $0.02 per share in after-tax start-up expenses and $0.01 per share in after-tax bid and proposal expenses related to significant business development opportunities GEO is pursuing internationally. In addition, GEO’s first quarter 2008 earnings per share estimate reflects higher payroll tax costs estimated at $0.02 per share which are front-loaded in the first quarter of the year.

GEO is maintaining its second quarter 2008 operating revenue guidance in the range of $245 million to $250 million, excluding pass-through construction revenues, and its second quarter 2008 earnings guidance in the pro forma range of $0.30 to $0.32 cents per share, excluding $0.02 per share in after-tax start-up expenses and $0.01 per share in after-tax bid and proposal expenses related to significant business development opportunities GEO is pursuing internationally.

GEO is maintaining its third quarter 2008 operating revenue guidance in the range of $255 million to $260 million, excluding pass-through construction revenues, and its third quarter 2008 earnings guidance in the pro forma range of $0.33 to $0.35 cents per share, excluding $0.08 per share in after-tax start-up expenses.

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GEO is maintaining its fourth quarter 2008 operating revenue guidance in the range of $270 million to $275 million, excluding pass-through construction revenues, and its fourth quarter 2008 earnings guidance in the pro forma range of $0.39 to $0.41 per share, excluding $0.01 per share in after-tax start-up expenses.

GEO’s 2008 guidance is based on a number of assumptions related to GEO’s business including the continued operation of GEO’s current contracts at projected occupancy levels; the activation of GEO’s new projects on schedule; and the activation of one new contract by GEO Care in the second half of the year. GEO’s 2008 guidance does not include the potential reactivation of GEO’s 530-bed North Lake Correctional Facility in Baldwin, Michigan and the 200-bed Coke County Juvenile Justice Center in Bronte, Texas or any additional contract wins by GEO’s three business units of U.S. Corrections, International Services, and GEO Care, which could represent additional upside to GEO’s projections for 2008.

The following table provides a quarterly breakdown of GEO’s financial guidance for 2008.


2008 Operating Revenue Guidance (In Millions)
*(Exclusive of Pass-Through Construction Revenue)*	1Q 2008		2Q 2008		3Q 2008		4Q 2008		FY 2008


Revenue Guidance (February 13, 2008)		$240 - $245		$245 - $250		$255 - $260		$270 - $275	$	1,010 - $1,030


2008 Earnings Per Share
	1Q 2008		2Q 2008		3Q 2008		4Q 2008		FY 2008


GAAP EPS Guidance (February 13, 2008)	$	0.22 - $0.24	$	0.27 - $0.29	$	0.25 - $0.27	$	0.38 - $0.40	$	1.12 - $1.20
After-Tax Start-Up Expenses	$	0.02	$	0.02	$	0.08	$	0.01	$	0.13
After-Tax International Bid and Proposal Expenses	$	0.01	$	0.01		—		—	$	0.02

Revised Pro Forma Guidance (February 13, 2008)	$	0.25 - $0.27	$	0.30 - $0.32	$	0.33 - $0.35	$	0.39 - $0.41	$	1.27 - $1.35

Diluted Weighted Average Shares Outstanding (In Millions)		51.8		51.8		51.8		51.8		51.8

Conference Call Information
GEO has scheduled a conference call and simultaneous webcast at 11:00 AM (Eastern Time) today to discuss GEO’s fourth quarter 2007 financial results as well as its progress and outlook. The call-in number for the U.S. is 1-866-831-6272 and the international call-in number is 1-617-213-8859. The participant pass-code for the conference call is 36958887. In addition, a live audio webcast of the conference call may be accessed on the Conference Calls/Webcasts section of GEO’s investor relations home page at www.thegeogroupinc.com. A replay of the audio webcast will be available on the website for one year. A telephonic replay of the conference call will be available until March 13, 2008 at 1-888-286-8010 (U.S.) and 1-617-801-6888 (International). The pass-code for the telephonic replay is 24342195. GEO will discuss Non- GAAP (“Pro Forma”) basis information on the conference call. A reconciliation from Non-GAAP (“Pro Forma”) basis information to GAAP basis results may be found on the Conference Calls/Webcasts section of GEO’s investor relations home page at www.thegeogroupinc.com.

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About The GEO Group, Inc.
The GEO Group, Inc. (“GEO”) is a world leader in the delivery of correctional, detention, and residential treatment services to federal, state, and local government agencies around the globe. GEO offers a turnkey approach that includes design, construction, financing, and operations. GEO represents government clients in the United States, Australia, South Africa, and the United Kingdom. GEO’s worldwide operations include the management and/or ownership of 67 correctional and residential treatment facilities with a total design capacity of approximately 59,000 beds, including projects under development.

Safe-Harbor Statement
This press release contains forward-looking statements regarding future events and future performance of GEO that involve risks and uncertainties that could materially affect actual results, including statements regarding estimated earnings, revenues and costs and our ability to maintain growth and strengthen contract relationships. Factors that could cause actual results to vary from current expectations and forward-looking statements contained in this press release include, but are not limited to: (1) GEO’s ability to meet its financial guidance for 2008 given the various risks to which its business is exposed; (2) GEO’s ability to successfully pursue further growth and continue to enhance shareholder value; (3) GEO’s ability to access the capital markets in the future on satisfactory terms or at all; (4) risks associated with GEO’s ability to control operating costs associated with contract start-ups; (5) GEO’s ability to timely open facilities as planned, profitably manage such facilities and successfully integrate such facilities into GEO’s operations without substantial costs; (6) GEO’s ability to win management contracts for which it has submitted proposals and to retain existing management contracts; (7) GEO’s ability to obtain future financing on acceptable terms; (8) GEO’s ability to sustain company-wide occupancy rates at its facilities; and (9) other factors contained in GEO’s Securities and Exchange Commission filings, including the forms 10-K, 10-Q and 8-K reports.

Fourth quarter and year-end financial tables to follow:

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THE GEO GROUP, INC.
CONSOLIDATED STATEMENTS OF INCOME
FOR THE THIRTEEN AND FIFTY-TWO WEEKS ENDED
DECEMBER 30, 2007 AND DECEMBER 31, 2006
(In thousands, except per share data)
(UNAUDITED)


	Thirteen Weeks Ended						Fifty-Two Weeks Ended
	30-Dec-07			31-Dec-06			30-Dec-07			31-Dec-06
Revenues	$	262,637		$	247,404		$	1,024,832		$	860,882
Operating expenses		212,645			210,246			830,634			718,178
Depreciation and amortization		8,939			4,467			33,870			22,235
General and administrative expenses		17,643			13,894			64,492			56,268

Operating income		23,410			18,797			95,836			64,201
Interest income		2,210			2,881			8,746			10,687
Interest expense		(8,002	)		(6,236	)		(36,051	)		(28,231	)
Write off of deferred financing fees from extinguishment of debt		—			—			(4,794	)		(1,295	)

Income before income taxes, minority interest, equity in earnings of affiliate and discontinued operations		17,618			15,442			63,737			45,362
Provision for income taxes		6,696			5,363			24,226			16,505
Minority interest		(116	)		(80	)		(397	)		(125	)
Equity in earnings of affiliate		671			538			2,151			1,576

Income from continuing operations		11,477			10,537			41,265			30,308
Income (loss) from discontinued operations		—			(22	)		580			(277	)

Net income	$	11,477		$	10,515		$	41,845		$	30,031

Weighted-average common shares outstanding:
Basic		50,347			38,810			47,727			34,442

Diluted		51,774			40,340			49,192			35,744

Income per common share:
Basic:
Income from continuing operations	$	0.23		$	0.27		$	0.87		$	0.88
Income (loss) from discontinued operations		—			—			0.01			(0.01	)

Net income per share-basic	$	0.23		$	0.27		$	0.88		$	0.87

Diluted:
Income from continuing operations	$	0.22		$	0.26		$	0.84		$	0.85
Income (loss) from discontinued operations		—			—			0.01			(0.01	)

Net income per share-diluted	$	0.22		$	0.26		$	0.85		$	0.84

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The GEO Group, Inc. — Operating Data


	13 Weeks			13 Weeks			52 Weeks			52 Weeks
	Ended			Ended			Ended			Ended
	30-Dec-07			31-Dec-06			30-Dec-07			31-Dec-06
*Revenue-producing beds		49,820			48,873			49,820			48,873
*Average occupancy¹		96.2	%		98.0	%		96.8	%		97.1	%
*Compensated man-days		4,314,586			4,149,101			17,260,398			15,761,357


*		Includes International Services and GEO Care

¹		Does not include GEO’s idle facilities.

THE GEO GROUP, INC.
CONSOLIDATED BALANCE SHEETS
DECEMBER 30, 2007 AND DECEMBER 31, 2006
(In thousands)


	December 30, 2007		December 31, 2006
	(Unaudited)
ASSETS
Current Assets
Cash and cash equivalents	$	44,403	$	111,520
Restricted cash		13,227		13,953
Accounts receivable, less allowance for doubtful accounts of $445 and $926		172,291		162,867
Deferred income tax asset		19,705		19,492
Other current assets		14,892		14,922

Total current assets		264,518		322,754

Restricted Cash		20,880		19,698
Property and Equipment, Net		783,612		287,374
Assets Held for Sale		1,265		1,610
Direct Finance Lease Receivable		43,213		39,271
Deferred income tax assets, net		4,918		4,941
Goodwill and Other Intangible Assets, Net		37,230		41,554
Other Non Current Assets		34,394		26,251

	$	1,190,030	$	743,453


LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities Accounts payable	$	48,661	$	45,345
Accrued payroll and related taxes		34,766		31,320
Accrued expenses		85,528		81,220
Current portion of deferred revenue		—		1,830
Current portion of capital lease obligations, long-term debt and non-recourse debt		17,477		12,685
Current liabilities of discontinued operations		—		1,303

Total current liabilities		186,432		173,703

Deferred Revenue		—		1,755
Deferred Tax Liability		223		—
Minority Interest		1,642		1,297
Other Non Current Liabilities		30,179		24,816
Capital Lease Obligations		15,800		16,621
Long-Term Debt		305,678		144,971
Non-Recourse Debt		124,975		131,680
Total shareholders’ equity		525,101		248,610

	$	1,190,030	$	743,453

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