Toronto, ON, November 29, 2006 – Student Transportation of Canada (“STC”), an operating subsidiary of Student Transportation of America (“STA”) (TSX: STB.UN), announced that it has signed a Definitive Asset Purchase Agreement to acquire certain school transportation assets and contracts of H. Burley Truck & Bus Repair Ltd. (Burley Bus), a local school bus operator based in Bridgenorth, Ontario. The transaction was contingent upon customer consent and approvals that have been obtained and the acquisition is scheduled to close on November 30, 2006. Burley Bus will add more than Cdn $1.2 million annualized revenue to STC’s Ontario operations and adds to the continuing growth in STA’s Canadian revenues. The Company expects the deal to be immediately accretive.

“This strategic acquisition marks our fifth in Ontario. It tucks into existing operations in our Peterborough, Ontario, location. STC’s growth initiative in this area will continue as we see additional opportunities to expand our services,” said David A. White, President and Chief Operating Officer of STA. “We look forward to continuing the safe reliable service that Burley Bus has delivered for so many years. We welcome their school bus employees into our family of companies while we implement plans for the smooth integration of Burley Bus.”

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 4,000 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 the Student Transportation of America Ltd., 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”, “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

Chief Financial Officer

Phone (732) 280-4200

Fax: (732) 280-4213

David White

President and Chief Operating 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]