School Bus Fleet Magazine Ranks STA Third Largest in North America

School Bus Fleet Magazine Ranks STA Third Largest in North America

Barrie, ON — North America’s fastest growing school transportation provider, Student Transportation of America, Ltd. (STA) (TSX: STB) announced today a leading pupil transportation industry magazine ranked STA as the third largest school bus fleet in North America. The July 2009 Contractor Survey issue of School Bus Fleet (“SBF”) Magazine also shows STA having the biggest gain in fleet size during the 2008-2009 school year.

Not included in the magazine totals, the company today announced it has signed a “non material” letter of intent subject to final due diligence and customer consent to acquire a school bus company in New Jersey that will add over 135 vehicles with annualized revenues of US$7.2 million. A press release and additional details will be disseminated upon closing of the acquisition which is expected prior to school starting.

“Moving to the No. 3 spot shows we have been committed to our growth strategy through acquisitions, bid-wins and conversions,” said STA Chairman and Chief Executive Officer Denis J. Gallagher. “While rankings are nice for industry statistics, we value our over 95% contract renewal rate since our inception 13 years ago as our real success. Retaining business is important as finding new business in a growth organization like ours. We have formed excellent relationships with our customers and our renewal rate is the important number right now. Our drivers, staff and experienced management team continue to find new ways to create value for our customers while providing a high level of safe and reliable service which also leads to new business.”

The CEO said growth for the company’s current fiscal year starting July 1, 2009 are three previously announced contract awards with the Los Angeles Unified School District, Duval County (Fla.) Public Schools and a conversion with the Williamsport Area School District in Pennsylvania. Also included are new contract awards for the upcoming 2009-2010 school year in Illinois, Connecticut, as well as additional route awards in California and Ontario, Canada. The pending acquisition, contract awards and conversion mentioned above will total over US$33.0 million in new contract revenue this year.

Gallagher added, “We expect to see an increase in conversions in 2010. With two-thirds of school districts in the US still owning and operating their own fleets, we plan to expand our marketing efforts this year to target districts that will need efficiencies in their school budgets due to current economic conditions. This is not a time to choose between laying off teachers, cutting programs or buying buses. We provide operating savings, local expertise and the capital.”

About Student Transportation

Founded in 1997, Student Transportation is the third-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 6,300 school vehicles in North America. For more information, please visit

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.


Student Transportation of America Ltd.

Denis J. Gallagher

Chairman and Chief Executive Officer

Patrick J. Walker

Executive Vice President and Chief Financial Officer

Keith P. Engelbert

Director of Investor Relations

(732) 280-4200