“All Aboard” for SNCF-P French National Railway Subsidiary, Caisse de depot
And Others in $60 Million Common Share Offerings Completed

TORONTO (April 29, 2008) Student Transportation of America, Ltd. (STA), (TSX: STB), one of North America’s fastest growing school transportation providers, today finalized and closed several private placement offerings announced last week. One new investor has “boarded the bus” and STA’s two largest shareholders “continue to join the ride” in agreements to purchase common shares valued at approximately C$60 million.

In one of its first investments in the North American transportation market, SNCF Participations (SNCF-P), a subsidiary of Société Nationale des Chemins de fer Français (SNCF), the French National Railway, purchased $40 million of the common shares of STA.

An additional $10 million of common shares was purchased by Caisse de dép™t et placement du Québec (Caisse), one of Canada’s largest pension funds and currently STA’s largest shareholder and just under $10 million of common shares was purchased today by several of STA’s existing shareholders.

The proceeds have been used to lower the company’s debt giving STA leverage to fund future growth opportunities, including acquisitions, new contract bids and conversions of publicly-operated school bus fleets.

“We have had just over a 20 percent revenue growth rate for the last seven years and we continue to see tremendous opportunities for us in the years ahead, ” said STA Chairman and CEO Denis Gallagher. “Large investors like these appreciate our ability to weather various business cycles and see the long term consistency in our operations and annualized results. Having support from major institutional investors in today’s tough equity and credit market goes a long way toward helping us overcome identity issues we have with individual retail brokers and investors whom we hope will be drawn to our stable, contracted revenues and very attractive dividend.”

“We are delighted to have SNCF-P make this substantial investment in STA and are excited to have Jean-Pierre Farandou join our board, ” Gallagher said. “We have great respect for the business that SNCF has built around the world in transportation and believe they will bring valuable and strategic experience to the Board. We also are very pleased that the Caisse and other large existing shareholders continue to demonstrate their confidence in STA by increasing their investments. The Caisse first invested in STA when we were a private company and again in 2004 as part of our initial public offering.”

In addition to the new equity raised, STA previously announced that its credit facilities had been expanded as well to help leverage its growth. CIBC, GE Capital and Scotia Bank all participate in the BMO Capital Markets-led credit facility syndicate that supports the company.

“Our investors and bankers recognize the attractiveness of our business model and the recession-resistant nature of school bus operations. Kids have to go to school and we continue to target acquisitions, bid on new contracts and identify opportunities to bring efficiencies to school districts that operate their own fleets in this $15 billion dollar North American industry,” said Gallagher.

SNCF-P CEO Dominique Thillaud said, “As an industrial shareholder, we are glad to be associated with the development of STA. We appreciate the efficient, profitable and durable growth model, and see STA as a strong company operating in the school bus transportation sector.”

Earlier this year, STA completed its 31st acquisition since its inception in 1997. The purchase of Canadex Resources Limited, one of the largest school bus operators in Ontario, increased STA’s Canadian revenues by 67 percent annually.

“We continue to find ways to enhance our operations and see this additional capital as an opportunity to improve our balance sheet and take advantage of situations that may become available to us in a down economy,” Gallagher added.

Common shares of STA Ltd. (STB:TSX) pay an annual cash dividend of $0.56 per common share.

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.rideSTA.com

About SNCF Participations
SNCF Participations is a holding company, more than 99%-owned by SNCF. France’s SNCF ranks amongst the major Railway operators and related services players in Europe. Its four divisions gather all together a wide range of services, for a variety of customers and industry sectors: Long-distance Passengers Transport in France and Europe, Transport & Logistics, Public Transport and Infrastructure & Engineering. In 2007, SNCF posted revenues of 23.7 billion euros and an EBITDA of 2.8 billion euros. As a holding company, SNCF Participations holds almost all the subsidiaries of the group, with key investments including the stakes in Keolis Group, Geodis Group and Eurostar Group Limited. In 2007, SNCF Participations posted revenues of 7.2 billion euros and an EBITDA of 0.5 billion euros.

About the Caisse de dép™t et placement du Québec

The Caisse de dép™t et placement du Québec is a financial institution that manages funds primarily for public and private pension and insurance plans. As at December 31, 2007, it held $155.4 billion of net assets. One of the leading institutional fund managers in Canada, the Caisse invests in the main financial markets as well as in private equity and real estate. For more information: www.lacaisse.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 CEO
(732) 280-4200

Patrick J. Walker
Executive VP and CFO
(732) 280-4200

Keith P. Engelbert
Director of Investor Relations
(732) 280-4200
(732) 280-4213 (FAX)
Email: [email protected]
Website: www.rideSTA.com