TORONTO (January 17, 2008) Student Transportation of America Ltd. (“STA”) (TSX: STB, STB.UN), one of North America’s fastest growing school transportation providers, today announced that, it has secured increased commitments under its existing senior credit facilities by US $40 million. The increase in commitments will provide working capital and support the company’s continued growth, including the pending acquisition of Canadex Resources Inc.

“The increase in our senior credit facility allows us to leverage additional growth targets and further demonstrates lender confidence in the stability of our business,” said Patrick J. Walker, executive vice president and chief financial officer. “We are pleased that Scotia Capital has joined our group of lenders and we welcome their support as one of Canada’s leading banks”.

The increase in senior debt commitments with STA senior lenders was led and underwritten by BMO Capital Markets which also acted as Administrative Agent for the bank group comprised of GE Capital, CIBC World Markets Inc. and Scotia Capital.

“Securing the increase in senior debt commitments in the current market environment, while adding strength to the group, is a direct result of the consistent, reliable and predictable nature of our business model as we continue to grow,” said Walker.

Profile

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 Student Transportation of America Ltd.’s, Student Transportation of America ULC’s and Student Transportation of America Holdings, Inc.’s (the “Company”) results of operations, expense levels, seasonality, cash flows, performance, liquidity, borrowing availability, financial ratios, ability to execute the Company’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”, “could”, “plans” or “continue” or similar expressions suggesting future outcomes or events. These forward looking statements reflect the Company’s current expectations regarding anticipated future events, results, circumstances, performance or expectations 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 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 J. Walker

Executive Vice President and 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]