Exhibit 99.3

                    [AMERICA SERVICE GROUP INC. LETTERHEAD]


CONTACT: MICHAEL CATALANO
         CHAIRMAN, PRESIDENT AND
           CHIEF EXECUTIVE OFFICER
         (615) 376-1319


                AMERICA SERVICE GROUP APPOINTS MICHAEL W. TAYLOR
                SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER

NASHVILLE, Tennessee (October 17, 2001) - America Service Group Inc.
(NASDAQ:ASGR) announced today that Michael W. Taylor, CPA, will join the Company
as Senior Vice President and Chief Financial Officer effective November 1,
replacing S. Walker Choppin, who is resigning to pursue other interests.

         Prior to joining America Service Group, Mr. Taylor was employed for
almost 12 years with Mid-State Automotive Distributors, Inc, the operating
subsidiary of Mid-States PLC, a United Kingdom publicly traded holding
corporation. Since 1998, Mr. Taylor served as Vice President, Chief Financial
Officer and Treasurer for Mid-State, a corporation engaged in wholesale and
retail distribution of automotive replacement parts in the Southeast United
States. During his tenure with Mid-State, revenues increased from $60 million to
$120 million, and Mr. Taylor was involved in all financial aspects of the
Company including public company reporting, initial public offerings, banking,
significant mergers and acquisition activity, and served as shareholder and
investment community liaison. Mr. Taylor is a certified public accountant and
began his career with Arthur Andersen LLP in Nashville, Tennessee. He graduated
with a Bachelor of Science in Accounting from the University of Kentucky.

         Mr. Catalano, President and Chief Executive Officer of America Service
Group, said, "We are pleased to have Michael Taylor as a member of senior
management. His background as a CPA and his multi-facility experience will be
invaluable in our business. We expect Michael to play a pivotal role in helping
us restore confidence and regain credibility with the investment community."

         Mr. Catalano continued, "Walker Choppin has been a real asset to
America Service Group. We owe him a debt of gratitude and wish him well in his
new endeavor. On a personal level, I will miss his counsel and the close working
relationship we enjoyed."

         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 to government agencies for the medical care of
inmates.

         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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