Wall, NJ – July 30, 2007 – Student Transportation of America Ltd. (“STA”) (TSX: STB.UN) announced today that it has signed new leases on two facilities to better serve its largest customer in Riverside, California. The facilities are expected to improve operating and financial performance for the Company’s single largest contract.

“Having two facilities situated in strategic sections of the district will enable us to properly stage our drivers for their routes which will reduce excess hours as well as lower our maintenance expense considerably”, said Denis Gallagher, CEO of STA.

STA had to operate in an alternative, non traditional manner during last school year in Riverside which caused unanticipated higher operating costs due to the lack of suitable facilities in the district. The Company has recently completed the first of a five year contract with the Riverside Unified School District in California.

“Our staff is excited about the new facilities and have scheduled an Open House this month for local school officials”, Gallagher added. “This year’s summer school program has been a tremendous success and larger than last year. Currently we are busy preparing for the opening of the regular school season slated for late August.”

Profile

Student Transportation is the fifth-largest provider of school bus transportation services in North America, conducting operations through local operating subsidiaries. Student Transportation has become a leading school transportation and management company by aggregating operations through the consolidation of existing providers and conversion of in-house operations and currently operates more than 4,500 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, including the acquisition of notes under the Exchange Offer, that 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 acquisition of less than a significant number of notes under the Exchange Offer and 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.

For more information contact:

Denis J. Gallagher

Chairman and Chief Executive Officer
Phone: (732) 280-4200

Fax: (732) 280-4213

Patrick Walker
Chief Financial Officer
Phone: (732) 280-4200
Fax: (732) 280-4213

Keith P. Engelbert
Director of Investor Relations
Phone: (732) 280-4200
Fax: (732) 280-4213
[email protected]