Welcome to the quarter one 2008 GEO Group earnings conference call. (Operator Instructions) I would now like to turn the presentation over to your host for today’s call, Pablo Paez, Director of Corporate Relations.

Thank you for joining us for today’s discussion of The GEO Group’s first quarter 2008 earnings results. With us today is George Zoley, Chairman and Chief Executive Officer; Wayne Calabrese, Vice Chairman, President and Chief Operating Officer; Jerry O’Rourke, Chief Financial Officer; and Brian Evans, Vice President of Finance, Treasurer and Chief Accounting Officer. This afternoon, we will discuss our first quarter performance and current business development activities and we will conclude the call with a question-and-answer session. This conference is also being webcast live on our website at www.thegeogroupinc.com. A replay of the audio webcast will be available on the website for one year. A telephone replay will also be available through June 1 at 1-888-286-8010. The passcode for the telephone replay is 89981286. During the call, we will discuss non-GAAP basis information. Reconciliation from non-GAAP basis information to GAAP basis results may be found on the conference call section of our Investor Relations webpage. Before I turn the call over to George, please let me remind you that much of the information we will discuss today, including the answers we give in response to your questions, may include forward-looking statements regarding our beliefs and current expectations with respect to various matters. These forward-looking statements are intended to fall within the Safe Harbor provisions of the Securities laws. Our actual results may differ materially from those in the forward-looking statements as a result of various factors contained in our Securities and Exchange Commission filings, including the Forms 10-K, 10-Q and 8-K reports. With that, please allow me to turn this call over to George Zoley.

Thank you for joining us today, as I provide an overview of our financial results for the first quarter 2008 and update you on the projects currently under development in new business opportunities. When I conclude my prepared remarks I’ll open up the call to a question-and-answer session. After reporting what was the best yearly results in our company’s history in 2007 I’m very pleased to announce that our first quarter of 2008 results continue to show strong performance from all three of our business units, of U.S. Corrections, GEO Care and International Services. We believe that our first quarter performance validates the strong business demand and key growth drivers in our industry as well as the continued success of our company’s uniquely diversified growth platform. Our three growth business units delivered strong year-over-year financial growth driven primarily by the activation of seven new projects totaling 4,200-beds brought online in the last three quarters of 2007. The activation of the 576-bed Robert Deyton Facility in Georgia for the U.S. Marshals Service in February of this year, and overall strong performance at a number of our correctional and residential treatment facilities both at the state and Federal levels. Our first quarter pro forma earnings increased 51% to $13.6 million, or $0.26 per share based on 51.7 million shares, compared to $9 million or $0.21 per share based on 41.6 million shares for the first quarter of 2007. Our pro forma earnings for the first quarter exclude approximately $1 million, or $0.02 per share in after-tax startup expenses and approximately $150,000 in after-tax international bid and proposal costs. On a GAAP basis, our first quarter 2008 income from continuing operations was $12.4 million or $0.24 per share, based on 51.7 million shares compared to $5.1 million, or $0.12 per share based on…

(Operator Instructions) Your first question comes from Kevin Campbell - Avondale.

George could you give us some greater clarity or detail on this Texas rebid? I know you gave us the size of the facilities, but was there a revenue amount that was at risk?

I really can’t give you much specifics on the situation which we are in active rebid status. So I know we’ve given you the revenues.

Yes, that might give away what maybe you might bid I suppose.

Part of that, its four or five facilities totaling 3,000 beds and we’ve had them for a number of years and we are going to compete aggressively and we hope to retain them. But they are managed only facilities so you know. You know the margins in the managed only business.

And if you look at the expansion costs for the facility in Michigan I think the costs are pretty low per bed, does your $60 million estimate include FF&E and capitalized interest, or is it just the construction costs by themselves?

That’s another competitive situation I really can’t go into the specifics of. But we have an existing facility; basically we’re building only housing units. That’s about as much as I can say.

Typically you don’t build on speculation; you generally have very good visibility. And I think you pride yourself on not doing that. And is it safe to assume that you’ve got fairly good visibility as to who might use these beds?

Well, I think I’ve mentioned in my conference call script, a number of opportunities that would put these facilities to good use at either the Federal or the state level.

Could you talk about Coke County, I didn’t hear that mentioned in your script, what’s going on there?

Well, we own it now and we are looking at different possible uses, so it’s still under review and research but there’s no new announcement at this time. We do now own it outright.

Your next question comes from [inaudible] – Lehman Brothers. Unidentified Analyst – Lehman Brothers: On the GEO Care opportunity in Pennsylvania, could you give us a little more color on at least on what you feel, you mentioned the political issues as to why they took back or canceled the contracts there. Could you maybe give a little more color as to what was going on there? And do you foresee any similar risks to maybe other contract bids, or to any other part of your division?

We really don’t have much to add other than that we received a nice letter thanking us for our submittals and notifying us of the cancellation of RFP, and a statement that they hoped that we would be bidding on future opportunities. So we don’t know of there is finality to this decision or if there is a possibility it could be reviewed at a later date. Unidentified Analyst – Lehman Brothers: On the international side, could you give us a little more color as to you mentioned the two U.K. RFPs where you were not selected. Could you maybe give us a little color on what the competitive situation is there like was there a particular reason or something that you lacked with respect to not being selected for those two opportunities?

I think, I’ve said in the past that when the competition involves the smaller facilities, like 500-beds or a little bit more, that there’s a lot more competition and just about anybody can be selected on any particular day. That’s why we believe there is greater hope for success when the procurements for the super jails, involving 2,500-bed facilities, will be coming out as I said, by the end of the year. Unidentified Analyst – Lehman Brothers: In the state section you mentioned in California, amongst other states, the need for 15,000 beds. Could you maybe give us a quick read on what you’re seeing is the situation in California today and what the possible timeline there could be for maybe a few more beds coming out of there?

Well, there is a number of states that are just concluding their legislative sessions or still in session. I think California is still in session. Florida recently, I think they’re adjourning their session this week, and they approved 2,000 beds to be privately developed and managed. California I believe is still in session. I think they’re still looking at the alternatives of how to expand their capacity. With respect to the Governors’ budget proposal to release 22,000 prisoners, we’re not aware of any movement in that direction to do that. And if that does not occur, we believe the only logical alternative to releasing prisoners is to add capacity. We think that’s under active review through a number of different initiatives that would be done, primarily in state and possibly some out of state.

Your next question comes from T.C. Robillard - Banc of America Securities.

What was, do you have at your fingertips cash from operations in the quarter? Can you give us an update on the New Castle facility in terms of, have you started to replace the Arizona inmates with the Indiana inmates, just trying to get a sense as to how smoothly that transition’s going?

There has been a steady back filling of the beds by Indiana prisoners regarding those prisoners that are from Arizona and returning back to Arizona. And we expect that process to be completed by the middle or end of next month.

I know that there’s been a little bit of local business opposition to the expansion of your Aurora facility, which I’m sure is probably standard operating procedure when it comes to dealing on a local level. Is this something that’s normal, it’s just a normal little hiccup or does this run the risk of pushing your ability to break ground on that in the summer?

Well it’s not surprising that somebody would be in opposition to a prison or a detention expansion project. But we did get a unanimous vote from the planning commission and it’ll go to the city council in about a month for final approval.

And does this opposition, is there any, do they have any teeth to it? Or is this a situation where if you get the next round of approvals you are all set to go forward with the expansion?

No, we think we have a well-designed facility. We have made a number of concessions that were requested regarding water flow on the property and exit routes as well as entrances into the facility. So we think we are well under control as to the site planning criteria that’s required to be mapped.

Jerry, the cash from ops number? John G. O’Rourke : It’s about $2 million for the first quarter.

Your next question comes from Emily Shanks - Lehman Brothers.

Around the accordion feature have you been in discussions with any banks about potential backups for that? John G. O’Rourke : At this time last year we had redone our complete senior debt facility to the tune of about $365 million. And then we subsequently de-levered with the proceeds of $200, taking $200 million of the equity offering and bringing that down. We have a very strong relationship with both BNP Paribas as our lead banker and the syndicate of banks; we’ll continue to have talks with them. And embedded in our current agreement is this accordion feature, which allows us to go back and get $150 million of that which we previously paid down a year ago. So we believe that that is very doable. We’ll do it on our own time lines to give us the liquidity we need to continue to have dry powder.

But that, just be clear it’s a traditional accordion in that it’s not committed yet? John G. O’Rourke : That is correct.

And then could you just let me know what tax rate you’re estimating for you EPS guidance?

38% to 39% for the year.

And then is it possible to break out the non-recourse debt that’s under the current portion on the balance sheet?

We haven’t done that in past, we can look at that.

We have no further question in queue.

Well we thank everyone for joining us on this call and look forward to addressing you on our next call. Thank you.