CONDENSED CONSOLIDATING BALANCE SHEET

(dollars in thousands)

(unaudited)



	As of April 1, 2012
	The GEO Group, Inc.		Combined Subsidiary Guarantors		Combined Non-Guarantor Subsidiaries		Eliminations			Consolidated
	(Dollars in thousands)
ASSETS
Cash and cash equivalents	$	8,973	$	2,524	$	37,502	$	—		$	48,999
Restricted cash and investments	—		—		38,398		—			38,398
Accounts receivable, less allowance for doubtful accounts	116,428		140,912		25,562		—			282,902
Deferred income tax assets, net	14,063		10,875		3,788		—			28,726
Prepaid expenses and other current assets	718		20,972		10,963		(1,273		)	31,380
Total current assets	140,182		175,283		116,213		(1,273		)	430,405
Restricted Cash and Investments	8,712		—		52,667		—			61,379
Property and Equipment, Net	637,198		830,766		249,127		—			1,717,091
Assets Held for Sale	3,083		2,422		—		—			5,505
Direct Finance Lease Receivable	—		—		31,077		—			31,077
Intercompany Receivable	393,297		14,437		1,805		(409,539		)	—
Deferred Income Tax Assets, Net	—		—		1,711		—			1,711
Goodwill	34		507,272		770		—			508,076
Intangible Assets, Net	—		193,717		1,935		—			195,652
Investment in Subsidiaries	1,333,093		10,333		—		(1,343,426		)	—
Other Non-Current Assets	39,573		77,885		35,363		(69,499		)	83,322
Total Assets	$	2,555,172	$	1,812,115	$	490,668	$	(1,823,737	)	$	3,034,218



	As of April 1, 2012
	The GEO Group, Inc.		Combined Subsidiary Guarantors		Combined Non-Guarantor Subsidiaries		Eliminations			Consolidated
	(Dollars in thousands)
LIABILITIES AND SHAREHOLDERS’ EQUITY
Accounts payable	$	28,680	$	23,795	$	3,355	$	—		$	55,830
Accrued payroll and related taxes	21,372		10,653		16,635		—			48,660
Accrued expenses	54,876		34,155		24,226		(1,273		)	111,984
Current portion of capital lease obligations, long-term debt and non-recourse debt	20,884		1,452		33,684		—			56,020
Total current liabilities	125,812		70,055		77,900		(1,273		)	272,494
Deferred Income Tax Liabilities	42,879		82,296		34		—			125,209
Intercompany Payable	1,805		380,387		27,347		(409,539		)	—
Other Non-Current Liabilities	31,649		27,087		69,905		(69,499		)	59,142
Capital Lease Obligations	—		12,719		—		—			12,719
Long-Term Debt	1,312,465		367		—		—			1,312,832
Non-Recourse Debt	—		—		201,653		—			201,653
Commitments & Contingencies
Shareholders' Equity:
The GEO Group, Inc. Shareholders' Equity	1,040,562		1,230,158		113,268		(1,343,426		)	1,040,562
Noncontrolling Interests	—		9,046		561		—			9,607
Total Shareholders’ Equity	1,040,562		1,239,204		113,829		(1,343,426		)	1,050,169
Total Liabilities and Shareholders' Equity	$	2,555,172	$	1,812,115	$	490,668	$	(1,823,737	)	$	3,034,218

CONDENSED CONSOLIDATING BALANCE SHEET

(dollars in thousands)

(unaudited)



	As of January 1, 2012
	The GEO Group, Inc.		Combined Subsidiary Guarantors		Combined Non-Guarantor Subsidiaries		Eliminations			Consolidated
	(Dollars in thousands)
ASSETS
Cash and cash equivalents	$	15,085	$	3,155	$	26,513	$	—		$	44,753
Restricted cash and investments	—		—		42,535		—			42,535
Accounts receivable, less allowance for doubtful accounts	128,302		141,671		22,810		—			292,783
Deferred income tax assets, net	14,063		10,875		3,788		—			28,726
Prepaid expenses and other current assets	17,315		23,832		10,539		(1,154		)	50,532
Total current assets	174,765		179,533		106,185		(1,154		)	459,329
Restricted Cash and Investments	8,016		—		49,896		—			57,912
Property and Equipment, Net	620,821		834,513		250,837		—			1,706,171
Assets Held for Sale	3,083		1,280		—		—			4,363
Direct Finance Lease Receivable	—		—		32,146		—			32,146
Intercompany Receivable	386,026		14,305		14,028		(414,359		)	—
Deferred Income Tax Assets, Net	—		—		1,711		—			1,711
Goodwill	34		507,272		760		—			508,066
Intangible Assets, Net	—		198,477		1,865		—			200,342
Investment in Subsidiaries	1,333,885		9,784		—		(1,343,669		)	—
Other Non-Current Assets	40,695		73,480		31,022		(65,621		)	79,576
Total Assets	$	2,567,325	$	1,818,644	$	488,450	$	(1,824,803	)	$	3,049,616



	As of January 1, 2012
	The GEO Group, Inc.		Combined Subsidiary Guarantors		Combined Non-Guarantor Subsidiaries		Eliminations			Consolidated
	(Dollars in thousands)
LIABILITIES AND SHAREHOLDERS’ EQUITY
Accounts payable	$	47,162	$	18,549	$	3,942	$	—		$	69,653
Accrued payroll and related taxes	3,223		18,417		17,002		—			38,642
Accrued expenses	69,756		33,504		24,751		(1,154		)	126,857
Current portion of capital lease obligations, long-term debt and non-recourse debt	19,037		1,363		33,266		—			53,666
Total current liabilities	139,178		71,833		78,961		(1,154		)	288,818
Deferred Income Tax Liabilities	42,879		82,296		34		—			125,209
Intercompany Payable	14,027		378,005		22,327		(414,359		)	—
Other Non-Current Liabilities	29,384		28,654		63,964		(65,621		)	56,381
Capital Lease Obligations	—		13,087		—		—			13,087
Long-Term Debt	1,318,639		429		—		—			1,319,068
Non-Recourse Debt	—		—		208,532		—			208,532
Commitments & Contingencies
Shareholders' Equity:
The GEO Group, Inc. Shareholders' Equity	1,023,218		1,229,553		114,116		(1,343,669		)	1,023,218
Noncontrolling Interests	—		14,787		516		—			15,303
Total Shareholders’ Equity	1,023,218		1,244,340		114,632		(1,343,669		)	1,038,521
Total Liabilities and Shareholders' Equity	$	2,567,325	$	1,818,644	$	488,450	$	(1,824,803	)	$	3,049,616

CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME

(dollars in thousands)

(unaudited)



	For the Thirteen Weeks Ended April 1, 2012
	The GEO Group, Inc.			Combined Subsidiary Guarantors			Combined Non-Guarantor Subsidiaries			Eliminations			Consolidated
Revenues	$	148,975		$	224,347		$	61,774		$	(22,754	)	$	412,342
Operating expenses	139,440			154,344			48,098			(22,754		)	319,128
Depreciation and amortization	6,929			14,128			2,158			—			23,215
General and administrative expenses	9,396			14,149			3,896			—			27,441
Operating income	(6,790		)	41,726			7,622			—			42,558
Interest income	7,807			492			1,601			(8,093		)	1,807
Interest expense	(16,917		)	(7,911		)	(4,072		)	8,093			(20,807		)
Income (loss) before income taxes and equity in earnings of affiliates	(15,900		)	34,307			5,151			—			23,558
Provision (benefit) for income taxes	(5,716		)	12,990			1,973			—			9,247
Equity in earnings of affiliates, net of income tax provision	—			—			748			—			748
Income (loss) before equity income of consolidated subsidiaries	(10,184		)	21,317			3,926			—			15,059
Income from consolidated subsidiaries, net of income tax provision	25,243			—			—			(25,243		)	—
Net income	15,059			21,317			3,926			(25,243		)	15,059
Net income attributable to noncontrolling interests	—			(17		)	(17		)	—			(34		)
Net income attributable to The GEO Group, Inc.	$	15,059		$	21,300		$	3,909		$	(25,243	)	$	15,025

Net income	$	15,059		$	21,317		$	3,926		$	(25,243	)	$	15,059
Other comprehensive income, net of tax	$	30		$	—		$	1,957		$	—		$	1,987
Comprehensive income	$	15,089		$	21,317		$	5,883		$	(25,243	)	$	17,046
Comprehensive income attributable to noncontrolling interests	$	—		$	(17	)	$	(45	)	$	—		$	(62	)
Comprehensive income attributable to The GEO Group, Inc.	$	15,089		$	21,300		$	5,838		$	(25,243	)	$	16,984

CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME

(dollars in thousands)

(unaudited)



	For the Thirteen Weeks Ended April 3, 2011
	The GEO Group, Inc.			Combined Subsidiary Guarantors			Combined Non-Guarantor Subsidiaries			Eliminations			Consolidated
Revenues	$	143,391		$	211,226		$	55,501		$	(18,352	)	$	391,766
Operating expenses	131,874			143,703			42,061			(18,352		)	299,286
Depreciation and amortization	4,256			12,690			1,856			—			18,802
General and administrative expenses	11,465			16,886			4,437			—			32,788
Operating income	(4,204		)	37,947			7,147			—			40,890
Interest income	5,736			325			1,463			(5,955		)	1,569
Interest expense	(13,353		)	(5,939		)	(3,624		)	5,955			(16,961		)
Income (loss) before income taxes and equity in earnings of affiliates	(11,821		)	32,333			4,986			—			25,498
Provision (benefit) for income taxes	(4,568		)	12,493			1,855			—			9,780
Equity in earnings of affiliates, net of income tax provision	—			—			662			—			662
Income (loss) before equity income of consolidated subsidiaries	(7,253		)	19,840			3,793			—			16,380
Income from consolidated subsidiaries, net of income tax provision	23,633			—			—			(23,633		)	—
Net income	16,380			19,840			3,793			(23,633		)	16,380
Net loss attributable to noncontrolling interests	—			409			1			—			410
Net income attributable to The GEO Group, Inc.	$	16,380		$	20,249		$	3,794		$	(23,633	)	$	16,790

Net income	$	16,380		$	19,840		$	3,793		$	(23,633	)	$	16,380
Other comprehensive income, net of tax	$	9		$	—		$	296		$	—		$	305
Comprehensive income	$	16,389		$	19,840		$	4,089		$	(23,633	)	$	16,685
Comprehensive loss attributable to noncontrolling interests	$	—		$	409		$	8		$	—		$	417
Comprehensive income attributable to The GEO Group, Inc.	$	16,389		$	20,249		$	4,097		$	(23,633	)	$	17,102

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

(dollars in thousands)

(unaudited)



	For the Thirteen Weeks Ended April 1, 2012
	The GEO Group, Inc.			Combined Subsidiary Guarantors			Combined Non-Guarantor Subsidiaries			Consolidated
Cash Flow from Operating Activities:
Net cash provided by operating activities	$	26,364		$	20,495		$	22,001		$	68,860
Cash Flow from Investing Activities:
Proceeds from sale of property and equipment	—			149			9			158
Proceeds from sale of assets held for sale	—			297			—			297
Change in restricted cash and investments	—			—			791			791
Capital expenditures	(27,046		)	(21,232		)	(554		)	(48,832		)
Net cash (used in) provided by investing activities	(27,046		)	(20,786		)	246			(47,586		)
Cash Flow from Financing Activities:
Payments on long-term debt	(57,278		)	(340		)	(6,457		)	(64,075		)
Proceeds from long-term debt	53,000			—			—			53,000
Distribution to noncontrolling interests	—			—			(5,758		)	(5,758		)
Proceeds from the exercise of stock options	231			—			—			231
Income tax provision of equity compensation	(342		)	—			—			(342		)
Payments for retirement of common stock	(1,035		)	—			—			(1,035		)
Debt issuance costs	(6		)	—			(38		)	(44		)
Net cash used in financing activities	(5,430		)	(340		)	(12,253		)	(18,023		)
Effect of Exchange Rate Changes on Cash and Cash Equivalents	—			—			995			995
Net (Decrease) Increase in Cash and Cash Equivalents	(6,112		)	(631		)	10,989			4,246
Cash and Cash Equivalents, beginning of period	15,085			3,155			26,513			44,753
Cash and Cash Equivalents, end of period	$	8,973		$	2,524		$	37,502		$	48,999

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

(dollars in thousands)

(unaudited)



	For the Thirteen Weeks Ended April 3, 2011
	The GEO Group, Inc.			Combined Subsidiary Guarantors			Combined Non-Guarantor Subsidiaries			Consolidated
Cash Flow from Operating Activities:
Net cash provided by operating activities	$	41,403		$	8,025		$	19,649		$	69,077
Cash Flow from Investing Activities:
Acquisition, cash consideration, net of cash acquired	(409,607		)	—			—			(409,607		)
Proceeds from sale of property and equipment	—			250			—			250
Change in restricted cash and investments	—			—			3,199			3,199
Capital expenditures	(33,312		)	(4,848		)	(536		)	(38,696		)
Net cash (used in) provided by investing activities	(442,919		)	(4,598		)	2,663			(444,854		)
Cash Flow from Financing Activities:
Payments on long-term debt	(15,375		)	(207		)	(6,084		)	(21,666		)
Proceeds from long-term debt	461,000			—			—			461,000
Distribution to noncontrolling interests	—			—			(4,012		)	(4,012		)
Proceeds from the exercise of stock options	983			—			—			983
Income tax benefit of equity compensation	172			—			—			172
Debt issuance costs	(9,277		)	—			—			(9,277		)
Net cash provided by (used in) financing activities	437,503			(207		)	(10,096		)	427,200
Effect of Exchange Rate Changes on Cash and Cash Equivalents	—			—			(5,193		)	(5,193		)
Net Increase in Cash and Cash Equivalents	35,987			3,220			7,023			46,230
Cash and Cash Equivalents, beginning of period	2,614			221			36,829			39,664
Cash and Cash Equivalents, end of period	$	38,601		$	3,441		$	43,852		$	85,894