Barrie, ON (November 23, 2009) – Student Transportation Inc. (“ST”) and Student Transportation of America ULC (“STA ULC”, and together with ST, the “Company”) (TSX: STB) has provided notice to registered noteholders that, as previously announced, STA ULC will redeem on December 21, 2009, for cash, all of the outstanding 14% Subordinated Notes of STA ULC. Currently, $35,758,409.76 aggregate principal amount of Subordinated Notes are outstanding. The redemption will include those Subordinated Notes that form part of the income participating securities (“IPSs”) of the Company, as well as those Subordinated Notes that are held on a stand-alone basis. The Subordinated Notes will be redeemed for a redemption price equal to 105% of the principal amount of each Note, plus accrued and unpaid interest to the redemption date.

Concurrent with the redemption, there will be an automatic separation of the IPSs, pursuant to the indenture governing the 14% Subordinated Notes. Following the redemption of the note portion of their IPSs (in connection with the redemption), former IPS holders will continue to own common shares of ST, which trade on the Toronto Stock Exchange under the symbol STB.

About Student Transportation

Founded in 1997, Student Transportation Inc. (ST) is North America’s third-largest and fastest-growing provider of school bus transportation services, operating more than 6,300 vehicles. ST’s family of local companies delivers safe, reliable and cost-effective transportation solutions to school districts throughout the U.S. and Canada. Services are delivered by drivers, dispatchers, maintenance technicians, terminal managers and others who are caring members of their local communities. For more information, please visit www.rideSTA.com.

Forward-Looking Statements

Certain statements in this news release are “forward-looking statements” within the meaning of applicable securities laws, which reflect the expectations of management regarding, among other matters, the completion of the redemption of the Subordinated Notes, ST’s revenues, expense levels, cost of capital, financial leverage, seasonality, liquidity, profitability of new businesses acquired or secured through bids, borrowing availability, ability to renew or refinance various loan facilities as they become due, ability to execute ST’s growth strategy and cash distributions, as well as their future growth, results of operations, performance and business prospects and opportunities. Forward-looking statements generally can be identified by the use of forward-looking terminology such as “may”, “will”, “expect”, “intend”, “estimate”, “anticipate”, “believe”, “should”, “plans” or “continue” or similar expressions, and the negative forms thereof, suggesting future outcomes or events.

These forward-looking statements reflect ST’s current expectations regarding future events and operating performance and speak only as of the date of this news release. Forward-looking statements involve significant risks and uncertainties, 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 or by which, such performance or results will be achieved. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements, including, but not limited to, the inability of STA ULC to complete the redemption of the Subordinated Notes, the inability of ST to control its operating expenses, its significant capital expenditures, its reliance on certain key personnel, the possibility that a greater number of its employees will join unions, its acquisition strategy, its inability to achieve our business objectives, significant competition in its industry, rising insurance costs, new governmental laws and regulations, its lack of insurance coverage for certain losses, environmental requirements, seasonality of its industry, its inability to maintain letters of credit and performance bonds and the termination of certain of its contracts for reasons beyond its control. Material factors and assumptions that were relied upon in making the forward-looking statements include contract and customer retention, current and future expense levels, availability of quality acquisition, bid and conversion opportunities, current borrowing availability and financial ratios, as well as current and historical results of operations and performance. Although the forward-looking statements contained in this news release are based upon what ST believes to be reasonable assumptions, investors cannot be assured that actual results will be consistent with these forward-looking statements, and the differences may be material. These forward-looking statements are made as of the date of this news release and ST assumes no obligation to update or revise them to reflect new events or circumstances, other than as required by applicable law.

INVESTOR CONTACTS:

Student Transportation Inc.

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

(732) 280-4213 (FAX)

Email: [email protected]

Website: www.rideSTA.com