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                                                                  EXHIBIT 99.1




                       (AMERICA SERVICE GROUP INC. LOGO)

                             N E W S  R E L E A S E


FOR IMMEDIATE RELEASE

CONTACT:  MICHAEL CATALANO                          BRUCE A. TEAL
          PRESIDENT AND CHIEF EXECUTIVE OFFICER     EXECUTIVE VICE PRESIDENT AND
          (615) 376-1319                              CHIEF FINANCIAL OFFICER
                                                    (615) 376-1361


                  AMERICA SERVICE GROUP INC. ACQUIRES ASSETS OF
                      CORRECTIONAL PHYSICIAN SERVICES, INC.

NASHVILLE, Tennessee (March 29, 2000) - America Service Group Inc. (NASDAQ:ASGR)
today announced that it has acquired the Pennsylvania and New York operations of
Correctional Physician Services, Inc. (CPS). The transaction was structured as
an asset purchase. CPS has assigned its contracts for the Eastern Region of the
Pennsylvania Department of Corrections and the Yonkers Region of the New York
Department of Correctional Services to Prison Health Services, Inc., an
operating subsidiary of America Service Group.

         The purchase price for the acquisition was $14 million cash, financed
with the Company's existing Senior Credit Facility. The acquisition is expected
to be accretive to the Company's earnings within the current year.

         CPS is a privately held company with headquarters located in Blue Bell,
Pennsylvania. Combined, the Pennsylvania and New York operations of CPS provided
services to approximately 21,000 inmates and had approximately $41 million in
revenue during 1999.

         The CPS operations complement and consolidate America Service Group's
existing operations in Pennsylvania and New York. "We are honored to expand our
relationships with the Pennsylvania Department of Corrections and the New York
Department of Correctional Services," said Michael Catalano, President and Chief
Executive Officer of America Service Group. "Our company will continue to serve
these clients with the added commitment of management and clinical talent at
CPS."

         America Service Group Inc., based in Brentwood, Tennessee, is a leading
provider of correctional healthcare services in the United States. America
Service Group contracts with approximately one hundred government agencies to
provide a wide range of managed healthcare programs tailored to specific client
needs. The Company employs over 4,200 medical, professional and administrative
staff nationwide.

         This press release may contain "forward-looking" statements made
pursuant to the safe harbor provisions of the Private Securities Litigation
Reform Act of 1995. As such, they involve risk and uncertainty that actual
results may differ materially from those projected in the forward-looking
statements. A discussion of the important factors and assumptions regarding the
statements and risks involved is contained in the Company's filings with the
Securities and Exchange Commission.


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