Student Transportation Inc. Announces C$75 Million Bought Deal Financing – Public Offering of Common Shares in Canada and the U.S.

Student Transportation Inc. Announces C$75 Million Bought Deal Financing – Public Offering of Common Shares in Canada and the U.S.

Student Transportation Inc. (“STI” or the “Company”)
announced today that it has entered into an
agreement, on a bought deal basis, to sell 10,950,000 common shares
of STI (the “Common Shares”) at a price of C$6.85 per Common Share to
raise gross proceeds of C$75 million. The transaction is being
underwritten by a syndicate led by BMO Capital Markets. The
Underwriters have the option to purchase up to an additional 15% of
the offering at any time prior to 30 days following the closing date,
to cover over-allotments, if any. Closing of the offering is expected
to occur on or about March 19, 2012, and is subject to regulatory

The net proceeds of the offering will be used to repay debt and for
general corporate purposes.

The Common Shares will be offered by way of short form prospectus in
all of the provinces and territories in Canada and will be offered in
the United States pursuant to a registration statement filed under
the Canada/U.S. multi-jurisdictional disclosure system, and may also
be offered on a private placement basis in certain jurisdictions
outside Canada and the United States pursuant to applicable
prospectus exemptions. A registration statement relating to these
securities has been filed with the United States Securities and
Exchange Commission but has not yet become effective. The securities
may not be sold nor may offers to buy be accepted in the United
States prior to the time the registration statement becomes
effective. This news release shall not constitute an offer to sell or
the solicitation of an offer to buy nor shall there be any sale of
the Common Shares in any jurisdiction in which such offer,
solicitation, or sale would be unlawful prior to registration or
qualification under the securities laws of that jurisdiction.

A written prospectus relating to the offering may be obtained upon
request in Canada by contacting BMO Capital Markets, Mississauga
Distribution Centre C/O The Data Group of Companies, 80 Ambassador
Drive, Mississauga, Ontario, L5T 2Y9 (tel:905-696-8884 x4222), and
in the United States by contacting BMO Capital Markets Corp. at 3
Times Square, 27th Floor, New York, NY 10036 (Attn. Equity
Syndicate), or toll-free at 800-414-3627 or by email at


Founded in 1997, Student Transportation Inc. is North America’s
third-largest and most progressive provider of school bus
transportation services, operating more than 8,000 vehicles. Student
Transportation’s family of local companies delivers safe, reliable
and cost-effective transportation solutions to school districts
throughout the U.S. and Canada. Services are delivered by drivers,
dispatchers, maintenance technicians, terminal managers and others
who are caring members of their local communities. For more
information, please visit

The Student Transportation Inc. logo is available at

Forward-Looking Statements

Certain statements in this news release are “forward-looking
statements” within the meaning of applicable securities laws, which
reflect the expectations of management regarding, among other
matters, STI’s revenues, expense levels, cost of capital, financial
leverage, seasonality, liquidity, profitability of new businesses
acquired or secured through bids, borrowing availability, ability to
renew or refinance various loan facilities as they become due,
ability to execute STI’s growth strategy and cash distributions, as
well as their future growth, results of operations, performance and
business prospects and opportunities. Forward-looking statements
generally can be identified by the use of forward-looking terminology
such as “may,” “will,” “expect,” “intend,” “estimate,” “anticipate,”
“believe,” “should,” “plans” or “continue” or similar expressions,
and the negative forms thereof, suggesting future outcomes or events.

Investor Contacts:
Student Transportation Inc.
Patrick J. Walker
Executive Vice President and Chief Financial Officer

Student Transportation Inc.
Keith P. Engelbert
Director of Investor Relations
(732) 280-4200