Wednesday February 4, 10:38 am Eastern Time
Company Press Release
SOURCE: U.S. Technologies Inc.
California Department of Corrections Approves U.S. Technologies Inc.
ATLANTA, Feb. 4 /PRNewswire/ -- U.S. Technologies Inc. (OTC Bulletin Board: USXX - news) today announced that it has been approved by the California Department of Corrections to create and operate joint venture, prison-industry work programs in four California correctional facilities managed by Wackenhut Corrections Corporation (NYSE: WHC - news). As previously announced, U.S. Technologies has entered into a one-year, renewable agreement with Wackenhut, whereby Wackenhut will allow U.S. Technologies to operate as its ''industry partner'' in any correctional facility managed by Wackenhut. Further, under the agreement, Wackenhut will determine the products that it purchases from outside of the correctional facilities which it manages and, to the extent possible, will purchase such products from U.S. Technologies. In return, U.S. Technologies has agreed not to operate in any correctional facilities other than those managed by Wackenhut.
U.S. Technologies, today, further announced that the California Department of Corrections, subject to the execution of the necessary agreements, has also approved U.S. Technologies to create and operate joint venture, prison- industry work programs in the correctional facilities managed by the California Department of Corrections, where industry space is, or becomes, available. Kenneth H. Smith, President and Chief Executive Officer of U.S. Technologies, stated that, ''Wackenhut has agreed to our participation in the joint venture work programs in the California 'non-privatized' correctional facilities and, further, has entered into an amendment to our existing agreement, which allows the Company to operate in any state or federal prison program which is not privatized.''
Mr. Smith further stated that, ''We are extremely pleased with our relationship with Wackenhut and, at the same time, we look forward to a period of rapid expansion made possible through the non-privatized prison facilities in California and other states. 1997 was the first year of the Company under new management, and was a year of the rebuilding and strengthening of our corporate foundations. This year will be one of growth and expansion.''
Wackenhut Corrections Corporation, based in Palm Beach Gardens, Florida, is the second largest manager of privatized correctional facilities in the United States. U.S. Technologies Inc. operates under the Prison Industrial Enhancement Program, a 1979 federal program (the ''PIE program''), as a contract manufacturer, serving the outsourcing needs of its customers, and has operated inside a Wackenhut-managed correctional facility, located in Lockhart, Texas, since 1993.
SOURCE: U.S. Technologies Inc.
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