Toronto, Ontario – November 21, 2006 – Student Transportation of America Ltd. (“STA Ltd.”) and Student Transportation of America ULC (“STA ULC”, and together with STA Ltd., the “Issuer”) (TSX: STB.UN) today announced that a cash payment of Cdn $0.09125000 per income participating security (“IPS”) of the Issuer will be payable on December 15, 2006 to holders of record of IPSs at the close of business on November 30, 2006.

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 $0.09125000 per IPS reflects a cash dividend of $0.04636833 per common share and an interest payment of $0.04488167 per IPS for the period from November 1 to November 30, 2006, as provided in the subordinated note indenture.

For clarity, with respect to any holders that hold common shares of STA Ltd. (TSX: STB) and/or subordinated notes of STA ULC (TSX: STB.DB) separately (as opposed to in the form of an IPS), the payment will be a cash dividend of $0.04636833 per common share and a cash interest payment of $0.04488167 per Cdn.$3.847 of subordinate note.

Profile

The Issuer is the fifth-largest provider of school bus transportation services in North America, conducting operations through local 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 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 Issuer’s and Company’s 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

Keith P. Engelbert
Director of Investor Relations
Phone: (732) 280-4200
Fax: (732) 280-4213

[email protected]

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