Exhibit 99.2

                     [AMERICA SERVICE GROUP INC. LETTERHEAD]


CONTACT: MICHAEL CATALANO                         S. WALKER CHOPPIN
         CHAIRMAN, PRESIDENT AND                  SENIOR VICE PRESIDENT AND
            CHIEF EXECUTIVE OFFICER                  CHIEF FINANCIAL OFFICER
         (615) 376-1319                           (615) 376-1346


                     AMERICA SERVICE GROUP ADJUSTS GUIDANCE
                        FOR THE THIRD AND FOURTH QUARTERS


NASHVILLE, Tennessee (September 17, 2001) - America Service Group Inc.
(NASDAQ:ASGR) announced today that financial results for both the third and
fourth quarters of this year will likely be less than the EBITDA range of $4.0
million estimated in the Company's second quarter earnings release. The Company
further announced that activities related to certain strategic initiatives, also
referenced in the second quarter release, have been discontinued.

         Mr. Catalano, president and chief executive officer of America Service
Group, said, "The likely shortfall is due to the unanticipated acceleration in
the cost of providing healthcare services under certain contracts. However, it
is important to understand that only five of our one hundred fifty-two contracts
account for the principal variance from plan."

         Mr. Catalano continued, "Despite these challenges, we have every
confidence in the value of our business model. We are executing a comprehensive
action plan, as previously announced. While some improvements have been
recognized in the early stages, these are not yet of sufficient magnitude to
offset the increased cost being incurred under a limited number of contracts. We
are focused on these contract situations and believe that our performance in
2002 will reflect the success of the operational initiatives we have in place."

         The Company expects to issue its third quarter earnings release during
the last week of October.

         America Service Group Inc., based in Brentwood, Tennessee, is the
leading provider of correctional healthcare services in the United States.
America Service Group Inc., through its subsidiaries, provides a wide range of
healthcare and pharmacy programs for approximately 340,000 inmates. The Company
employs over 7,000 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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