Toronto, Ontario/April 17, 2008 – Student Transportation of America Ltd. (TSX: STB) (“STA” or the “Company”) announced today that it has completed a private placement of approximately $10 million of additional common shares of STA at a price of $5.85 per share (the “Offering”).  STA had previously engaged Wellington West Capital Markets Inc. (“WWCM”) for the completion of the current private placement announced April 14, 2008. The additional shares being sold were due to increased demand from investors. CIBC World Markets Inc. has agreed to participate with WWCM in a syndicate for the additional shares.  The Offering is being completed on a “best efforts” agency basis. The additional common shares issued pursuant to the Offering are identical to the ones previously offered to SNCF Participations S.A. (“SNCF”) and the Caisse de dépôt et placement du Quebec (“Caisse”) and will be subject to a four-month hold period.

The net proceeds from the private placement will be used by STA to repay amounts outstanding under its growth credit facility and to fund future growth opportunities, including acquisitions, new contract bids and conversions. The completion of the private placement is subject to acceptance by the Toronto Stock Exchange.

THE SECURITIES OFFERED HAVE NOT BEEN AND WILL NOT BE REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES ABSENT REGISTRATION OR APPLICABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS.  THIS PRESS RELEASE SHALL NOT CONSTITUTE AN OFFER TO SELL OR THE SOLICITATION OF AN OFFER TO BUY NOR SHALL THERE BE ANY SALE OF THE SECURITIES IN ANY JURISDICTION IN WHICH SUCH OFFER, SOLICITATION OR SALE WOULD BE UNLAWFUL.

About Student Transportation

Founded in 1997, Student Transportation is the fourth-largest provider of school bus transportation services in North America, conducting operations through local operating subsidiaries. Student Transportation 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 5,000 school vehicles in North America. For more information, please visit www.rideSTA.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 STA’s results of operations, expense levels, cost of capital, financial leverage, seasonality, cash flows, performance, liquidity, borrowing availability, financial ratios, ability to execute the STA’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 STA’s current expectations regarding anticipated future events, results, circumstances, performance or expectations, which 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.

INVESTOR CONTACTS:    

Denis J. Gallagher

Chairman & CEO

(732) 280-4200  

Patrick J. Walker

Executive Vice President & CFO

(732) 280-4200

Keith P. Engelbert

Director of Investor Relations

(732) 280-4200

(732) 280-4213 fax

Email: [email protected]

Website: www.rideSTA.com     

MEDIA CONTACT:

Lynette Viviani

973-968-7929 office

973-534-1004 mobile

[email protected]