Student Transportation of Canada Converts Yellow School Bus Fleet to 'Green'



    Company Pioneers Use of Environmentally Friendly Biofuels to Lower
    Emissions, Create Healthier Environment for Children

    TORONTO, March 26 /CNW/ - Student Transportation of Canada (STC), a
subsidiary of Student Transportation of America (STA) (TSX: STB, STB.UN),
today announced the expansion of its biodiesel fuel program to more than 235
of its fleet of 1,000 yellow school buses operating throughout Ontario.
    Biodiesel, made from natural renewable resources such as soybean, corn
and canola oils, is North America's fastest growing alternative to diesel
fuel, producing cleaner emissions and cost savings. By choosing a cleaner fuel
alternative for its fleet, STC will provide a healthier environment for its
young passengers, school bus drivers and the community at large.
    "At STC, we all share a common concern for our children's health and the
environment," said Chris Harwood, senior vice president of operations for STC.
"Realizing a 40 percent reduction in greenhouse gases and reducing tailpipe
emissions are our primary objectives for the conversion. The added bonus for
the company, and our customers, is that cleaner biodiesel fuels also cost less
and reduce wear-and-tear on our engines further reducing maintenance costs."
    In the coming months, STC plans to implement similar biodiesel
conversions of company-controlled fuel supplies throughout the Province
increasing the long-term benefits to the environment and Ontario communities.
In addition to Simcoe Coach Lines in Sutton and Parkview Transit in Caledon,
Bradford, Newmarket and Collingwood, the STC family of companies includes Ayr
Student Transportation in Breslau; Elliott Coach Lines in Guelph, Elmira and
Fergus; and an STC location in Peterborough.

    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, (973) 968-7929
office, (973) 534-1004 mobile, lviviani@sta-ips.com; 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@sta-ips.com, Website: www.sta-ips.com

Organization Profile

STUDENT TRANSPORTATION INC.

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STUDENT TRANSPORTATION OF AMERICA ULC

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