America Service Group Announces Dismissal of Litigation

America Service Group Inc. ASGR, the parent company of PHS Correctional Healthcare, Inc., today announced the dismissal of the purported class action lawsuit filed on behalf of the Company's stockholders in the Chancery Court for Davidson County, Tennessee, styled Colleen Witmer, individually and on behalf of all others similarly situated, v. America Service Group Inc., Valitás Health Services, Inc., Whiskey Acquisition Corp., Burton C. Einspruch, William M. Fenimore, Jr., John W. Gildea, Richard Hallworth, John C. McCauley, Michael W. Taylor and Richard D. Wright. The complaint sought an order enjoining or rescinding the previously announced merger pursuant to the Agreement and Plan of Merger, dated March 2, 201 under which Valitás Health Services, Inc., the parent company of Correctional Medical Services, Inc., would acquire the Company, together with other relief. The Company noted that no consideration was paid or promised to the plaintiffs in exchange for the dismissal.