TORONTO, Jan. 20 /CNW/ – (TSX:STB.UN): Student Transportation of America
Ltd. (“STA Ltd.”) and Student Transportation of America ULC (“STA ULC”, and
together with STA Ltd., the “Issuer”) announced today that a cash payment of
Cdn$0.12198 per Income Participating Security will be payable on February 15,
2005 to holders of record of Income Participating Securities at the close of
business on January 31, 2005.

Each of the Income Participating Securities issued by the Issuer in its
recent initial public offering, which closed on December 21, 2004, represents
one common share of STA Ltd. and Cdn$3.847 aggregate principal amount of 14%
subordinated notes of STA ULC. The total payment of Cdn$0.12198 per Income
Participating Security reflects a cash dividend of Cdn$0.06087 per common
share for the period beginning December 21, 2004 and ending January 31, 2005
and includes an interest payment of Cdn$0.06111 per Income Participating
Security for the period beginning December 21, 2004 and ending January 31,
2005 as provided in the subordinated note indenture.

The Issuer’s policy is for unitholders of record on the last business day
of a calendar month to receive distributions on the fifteenth day (or the next
business day if such day is not a business day) of the next calendar month.
The Issuer, through its subsidiaries, is the fifth largest provider of
school bus transportation services in the United States, having in excess of
105 contracts with school districts in eleven states and a fleet of over
2,900 vehicles.

For more information contact:

Contact:
Denis J. Gallagher
Chairman & CEO
Phone: 732-280-4200
Email: [email protected]