Canadex Shareholders Respond to STA Offer with Overwhelming Support



    Acquisition will Increase Canadian revenue by 67 percent

    TORONTO, Jan. 18 /CNW/ - Student Transportation of America, Ltd. (STA),
(TSX: STB, STB.UN), one of North America's fastest growing school
transportation providers, today announced the completion of its offer for
Canadex Resources Limited (TSX: CDX), owner of one of the largest independent
school bus operators in Ontario. The purchase, valued at C$41.8 million,
boosts STA's Canadian revenue by 67 percent, increases existing cash flow by
15 percent and expands STA operations in the rapidly growing Golden Horseshoe
region surrounding Greater Toronto.
    "We are pleased that more than 93 percent of Canadex shareholders have
supported and approved the transaction by tendering their shares in connection
with the offer," said STA Chairman and CEO Denis Gallagher. "We intend to
acquire the remaining shares by exercising our statutory right of compulsory
acquisition under Ontario's Business Corporations Act and then apply to
de-list the Shares of Canadex from the TSX."
    With 2007 revenues of C$24 million and EBITDA of C$11.2 million, STA
acquires two separate and distinct Canadex business segments. The school bus
transportation division will continue to operate under the name Parkview
Transit which is a highly stable contracted business with strong cash flows.
The smaller energy division, with non-operating oil and gas minority interest
investments in the United States, is non-core to STA's business and will be
subject to further review by STA's Board of Directors and management team to
determine a course of action in the best interest of STA shareholders.
    "This is a great acquisition for us," Gallagher said. "Parkview Transit's
school bus operations are a perfect fit with our existing operations and add
to our core strategy of building regional density in Ontario. One hundred
percent of Parkview's home-to-school contracts include fuel price protection
which has been an important part of our negotiations."
    The Canadex acquisition makes STA the fourth largest provider of school
transportation services in Canada with nearly 1,000 buses and some
C$40 million in annualized revenue.
    "Building on our strategy of continuous growth and profitability through
acquisitions, bids and school district conversions, Canadex marks the 31st
acquisition since our inception in 1997," Gallagher said. "It significantly
increases our Canadian dollar cash flows at a time when the Canadian dollar is
close to par with the US dollar. Moreover, it provides additional support with
our currency hedges which are currently in place for the next 60 months in
support of our annual Canadian distributions."
    With oil and gas prices increasing worldwide, Gallagher said his company
already has been contacted by several parties interested in discussing various
strategic alternatives for the newly acquired energy division.
    Looking ahead, however, Gallagher said STA remains focused on excellent
execution of the fundamentals of school bus transportation. "Our core mission
remains the same: to safely and cost effectively transport children to and
from school each day, on time. Parkview Transit customers can look forward to
the same drivers, with the same buses, driving the same routes. We are pleased
to welcome these great drivers, mechanics, safety trainers, dispatchers,
terminal managers and all Canadex employees to the STA family of companies."

    Acquisition Counsel and Financing

    BMO Capital Markets acted as financial advisors to STA on the
transaction. Goodmans LLP of Toronto and Patton Boggs of Dallas, TX, provided
legal counsel in connection with the offer and Alluence Capital Advisors of
Mississauga, Ontario, assisted in the due diligence.

    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.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 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.





For further information:

For further information: MEDIA CONTACT: Lynette Viviani, for Student
Transportation, (973) 968-7929 office, (973) 534-1004 mobile,
lynette.viviani@vivianipr.com; INVESTOR CONTACTS: Student Transportation of
America Ltd., Denis J. Gallagher, Chairman and Chief Executive Officer, (732)
280-4200, (732) 280-4213 (FAX); Patrick J. Walker, Executive Vice President
and Chief Financial Officer, (732) 280-4200, (732) 280-4213 (FAX); Keith P.
Engelbert, Director of Investor Relations, (732) 280-4200, (732) 280-4213
(FAX), Email: kengelbert@sta-ips.com; Website: www.sta-ips.com

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STUDENT TRANSPORTATION INC.

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STUDENT TRANSPORTATION OF AMERICA ULC

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