BUFFALO, N.Y. – Student Transportation of America (STA) (TSX: STB) today announced that it has secured a new contract with a major charter school in the Buffalo, N.Y. area beginning this school year. The Charter School for Applied Technologies, the state’s largest charter school, has signed a new three-year contract for STA to provide an initial 25 vehicles to transport students to and from school as well as extracurricular activities.

The contract is the first in the area for STA which has purchased brand new vehicles for the start-up beginning next week.

“We are pleased that the charter school has selected STA to provide this important service,” said STA Chairman and CEO Denis Gallagher. “We are very excited about the opportunity and will do a tremendous job for them. We have worked very hard this month to assemble a great management team, led by Gene Kowalczewski, a seasoned industry executive from the Buffalo area. We have a complete staff of qualified drivers and mechanics from the local area, a terminal facility and brand new buses. We are ready to roll.”

Gallagher said contract revenues will be approximately $1.5 million in the initial year but that the company is actively looking for additional growth opportunities through new contracts and acquisitions. The company also will provide school bus charter and extracurricular services for many groups and schools in the Greater Buffalo area as well as services for summer camps.

STA has a reputation for being a local hometown company and gaining community support through participation with many local charities. Gallagher said the local team is looking forward to continuing that tradition in the Greater Buffalo area.

For more information about STA visit www.ridesta.com

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About Student Transportation

Founded in 1997, Student Transportation is the third-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 6,300 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: [email protected]

Website: www.rideSTA.com