Canadex Shareholders Respond to STA Offer with Overwhelming Support

Canadex Shareholders Respond to STA Offer with Overwhelming Support

TORONTO (January 18, 2008) Student Transportation of America, Ltd. (STA), (TSX: STB, STB.UN), one of North America’s fastest growing school transportation providers, today announced the completion of its offer for Canadex Resources Limited (TSX: CDX), owner of one of the largest independent school bus operators in Ontario. The purchase, valued at C$41.8 million, boosts STA’s Canadian revenue by 67 percent, increases existing cash flow by 15 percent and expands STA operations in the rapidly growing Golden Horseshoe region surrounding Greater Toronto.

“We are pleased that more than 93 percent of Canadex shareholders have supported and approved the transaction by tendering their shares in connection with the offer,” said STA Chairman and CEO Denis Gallagher. “We intend to acquire the remaining shares by exercising our statutory right of compulsory acquisition under Ontario’s Business Corporations Act and then apply to de-list the Shares of Canadex from the TSX.”

With 2007 revenues of C$24 million and EBITDA of C$11.2 million, STA acquires two separate and distinct Canadex business segments. The school bus transportation division will continue to operate under the name Parkview Transit which is a highly stable contracted business with strong cash flows. The smaller energy division, with non-operating oil and gas minority interest investments in the United States, is non-core to STA’s business and will be subject to further review by STA’s Board of Directors and management team to determine a course of action in the best interest of STA shareholders.

“This is a great acquisition for us,” Gallagher said. “Parkview Transit’s school bus operations are a perfect fit with our existing operations and add to our core strategy of building regional density in Ontario. One hundred percent of Parkview’s home-to-school contracts include fuel price protection which has been an important part of our negotiations.”

The Canadex acquisition makes STA the fourth largest provider of school transportation services in Canada with nearly 1,000 buses and some C$40 million in annualized revenue.

“Building on our strategy of continuous growth and profitability through acquisitions, bids and school district conversions, Canadex marks the 31st acquisition since our inception in 1997.” Gallagher said. “It significantly increases our Canadian dollar cash flows at a time when the Canadian dollar is close to par with the US dollar. Moreover, it provides additional support with our currency hedges which are currently in place for the next 60 months in support of our annual Canadian distributions.”

With oil and gas prices increasing worldwide, Gallagher said his company already has been contacted by several parties interested in discussing various strategic alternatives for the newly acquired energy division.

Looking ahead, however, Gallagher said STA remains focused on excellent execution of the fundamentals of school bus transportation. “Our core mission remains the same: to safely and cost effectively transport children to and from school each day, on time. Parkview Transit customers can look forward to the same drivers, with the same buses, driving the same routes. We are pleased to welcome these great drivers, mechanics, safety trainers, dispatchers, terminal managers and all Canadex employees to the STA family of companies.”

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Acquisition Counsel and Financing

BMO Capital Markets acted as financial advisors to STA on the transaction. Goodmans LLP of Toronto and Patton Boggs of Dallas, TX, provided legal counsel in connection with the offer and Alluence Capital Advisors of Mississauga, Ontario, assisted in the due diligence.

About Student Transportation

Founded in 1997, Student Transportation is the fourth-largest provider of school bus transportation services in North America, conducting operations through local operating subsidiaries. Student Transportation has become a leading school bus transportation company by aggregating operations through the consolidation of existing providers and conversion of in-house operations and currently operates more than 5,000 school vehicles in North America. For more information, please visit www.sta-ips.com.

Forward-Looking Statements

This news release contains “forward-looking statements” within the meaning of applicable securities laws, which reflects the expectations of management regarding STA’s results of operations, expense levels, cost of capital, financial leverage, seasonality, cash flows, performance, liquidity, borrowing availability, financial ratios, ability to execute the STA’s growth strategy and cash distributions. Forward-looking statements generally can be identified by the use of forward-looking terminology such as “may”, “will”, “expect”, “intend”, “track”, “targeted”, “estimate”, “anticipate”, “believe”, “should”, “plans” or “continue” or similar expressions suggesting future outcomes or events. These forward looking statements reflect STA’s current expectations regarding anticipated future events, results, circumstances, performance or expectations, which are not historical facts. Forward looking statements involve significant risks and uncertainties, and should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether or not or the times at which or by the performance or results will be achieved. A number of factors could cause our actual results to differ materially from the results discussed, expressed or implied in any forward-looking statement made by us or on our behalf, including, but not limited to the factors discussed under “Risk Factors” in our Annual Information Form. These forward looking statements are made as of the date of this news release and, except as required by applicable law, we undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

INVESTOR CONTACTS:

Student Transportation of America Ltd.

Denis J. Gallagher

Chairman and Chief Executive Officer

(732) 280-4200

(732) 280-4213 (FAX)

Patrick J. Walker

Executive Vice President and Chief Financial Officer

(732) 280-4200

(732) 280-4213 (FAX)

Keith P. Engelbert

Director of Investor Relations

(732) 280-4200

(732) 280-4213 (FAX)

Email: kengelbert@sta-ips.com

Website: www.sta-ips.com

MEDIA CONTACT:

Lynette Viviani

for Student Transportation

973-968-7929 office

973-534-1004 mobile

lynette.viviani@vivianipr.com