Toronto, ON, March 21, 2005 – Student Transportation of America Ltd. (“STA Ltd.”) and
Student Transportation of America ULC (“STA ULC”, and together with STA Ltd., the “Issuer”)
(TSX: STB) today announced that a cash payment of $0.08958333 per income participating
security (“IPS”) of the Issuer will be payable on April 15, 2005 to holders of record of IPSs at
the close of business on March 31, 2005.

Each IPS consists of one common share of STA Ltd. and CDN $3.847 principal amount of 14
per cent subordinated notes of STA ULC, a wholly-owned subsidiary of STA Ltd. The IPSs
trade on the Toronto Stock Exchange under the symbol STB.UN. The total payment of
$0.08958333 per IPS reflects a cash dividend of $0.04470166 per common share and an interest
payment of $0.04488167 per IPS for the period from March 1 to March 31, 2005, as provided in
the subordinated note indenture.

The Issuer is the fifth largest provider of school bus transportation services in the United States, conducting operations through 16 wholly-owned operating subsidiaries. The Issuer 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 provides school bus transportation in 11 U.S. states. For more information, please visit www.sta-ips.com.

For more information contact:

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

Patrick J. Walker
Chief Financial Officer
Phone (732) 280-4200
Fax: (732) 280-4213