TORONTO — Student Transportation of America, Ltd. (STA) (TSX: STB) today announced that it has received a notice of "intent to award" from the Los Angeles Unified School District’s ("LAUSD") for the company a contract to provide transportation services beginning in the 2009 – 2010 school year. The initial contract will be for a five-year term, valued at just under $5 million per school year with annual increases provided.

A condition of the contract award requires the company to purchase vehicles specified by LAUSD which are newly designed propane-fueled school vehicles. The company has applied for and has received verbal approval to receive grants from the South Coast Air Quality Management District ("AQMD") to fund a portion of the purchase of the 71 new propane vehicles. Last year, STA received AQMD grants toward the purchase of Compressed Natural Gas ("CNG") buses for its Riverside, CA, operations.

The Los Angeles Unified School District currently owns and operates approximately 1000 school district owned vehicles. Under the terms of the contract, STA will provide special services transportation to students living in the San Fernando Valley area.

"We are extremely pleased that STA was sought out and recommended for this service by the LAUSD Transportation Department," said Denis J. Gallagher, chairman and chief executive officer. "We serve a number of school districts around the state of California and believe that our reputation for providing cost-effective, high quality service played an important part in LAUSD’s decision."

"More than 65% percent of North American school districts still own and operate their own school bus fleets and current financial pressures are prompting many of them to look for cost-effective student transportation alternatives," Gallagher said. "We have been asked to review the transportation needs for a number of school districts this year where capital is needed to sustain and modernize their fleets. STA has the resources and experience to design and operate cost effective school transportation so school districts can concentrate on the important issue of education. It is a shame to see school programs dropped and teachers laid off due to school boards still spending precious capital for equipment and services we can provide."

Annual Meeting of Investors
STA will hold its Annual General Meeting on Thursday, November 13, 2008 at 2 p.m. (ET) at the Le Méridien King Edward Hotel, the Windsor Ballroom at 37 King Street East in Toronto. Following the formal meeting, there will be a presentation by management and a brief question and answer session for shareholders, analysts and institutional investors. The meeting will also be webcast live at STA’s website at www.rideSTA.com

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 5,600 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:
Student Transportation of America Ltd.
Denis J. Gallagher
Chairman and Chief Executive Officer

Patrick J. Walker
Executive Vice President and Chief Financial Officer

Keith P. Engelbert
Director of Investor Relations
(732) 280-4200
Email: kengelbert@rideSTA
Website: www.rideSTA.com