Student Transportation of America announces extension of Exchange Offer



    /NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN
    THE U.S./

    TORONTO, Aug. 13 /CNW/ - Student Transportation of America Ltd. ("STA
Ltd.") and Student Transportation of America ULC ("STA ULC" and, together with
STA Ltd., "STA") announced today that it has extended the period for
acceptance of its exchange offer dated July 8, 2008 (the "Exchange Offer") by
extending the expiration time of the Exchange Offer from 5:00 p.m. (Eastern
time) on August 13, 2008 to 5:00 p.m. (Eastern time) on September 4, 2008.
    Prior to extending the Exchange Offer, STA has taken up and accepted for
payment, all of the subordinated notes of STA ULC ("Notes") validly deposited
prior to the extension of the expiration time. Payment for Notes taken up
today will be made on or before August 18, 2008.
    Under the Exchange Offer, STA is offering holders of Notes, including
Notes represented by income participating securities ("IPSs"), 0.76 of a
common share of STA Ltd. in exchange for each $3.847 principal amount of Notes
(being the principal amount of Notes represented by an IPS).
    The Exchange Offer is extended for acceptance until 5:00 p.m. (Eastern
time) on Thursday, September 4, 2008, unless the Exchange Offer is further
extended or terminated by STA in accordance with the terms of the Exchange
Offer. All other terms of the Exchange Offer are unchanged. STA intends to
promptly mail a formal notice of extension relating to the extension of the
Exchange Offer to Note holders, a copy of which will be available on SEDAR at
www.sedar.com. The Exchange Offer circular, which sets forth the terms and
conditions of the Exchange Offer, is also available on SEDAR.

    THE SECURITIES OFFERED PURSUANT TO THE EXCHANGE OFFER 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.

    Profile

    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 5,400 school vehicles in North America. 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 including, without limitation, regarding STA'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 STA'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 STA'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 to control our operating
expenses, our significant capital expenditures, our reliance on certain key
personnel, the possibility that a greater number of our employees will join
unions, our acquisition strategy, our inability to achieve our business
objectives, significant competition in our industry, rising insurance costs,
new governmental laws and regulations, our lack of insurance coverage for
certain losses, environmental requirements, seasonality of our industry, our
inability to maintain letters of credit and performance bonds and the
termination of certain of our contracts for reasons beyond our control.
Material factors and assumptions that were relied upon in making the
forward-looking statements include the number of Notes acquired pursuant to
the Offer, 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 STA 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 STA assumes no obligation to update or revise them to reflect
new events or circumstances, other than as required by applicable law.

    Legal Notice

    Note holders are advised to review the Exchange Offer circular, the
notice of extension and any other relevant documents filed with securities
regulatory authorities by STA because they will contain important information,
including the full details of the Exchange Offer, as extended, and its terms
and conditions.





For further information:

For further information: Denis J. Gallagher, Chairman and Chief
Executive Officer, Phone: (732) 280-4200, Fax: (732) 280-4213; Patrick J.
Walker, Chief Financial Officer, Phone: (732) 280-4200, Fax: (732) 280-4213;
Keith P. Engelbert, Director of Investor Relations, Phone: (732) 280-4200,
Fax: (732) 280-4213, kengelbert@ridesta.com

Organization Profile

STUDENT TRANSPORTATION INC.

More on this organization

STUDENT TRANSPORTATION OF AMERICA ULC

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