Student Transportation (STA) wins new contract; expands into Buffalo, N.Y.



    
    Charter School Contract Creates Platform for Growth in Western New York
    State
    

    BUFFALO, NY, Aug. 26 /CNW/ - 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

    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.





For further information:

For further information: MEDIA CONTACT: Lynette Viviani, (973) 968-7929,
Lynette.viviani@vivianipr.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@rideSTA.com; Website: www.rideSTA.com

Organization Profile

STUDENT TRANSPORTATION INC.

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STUDENT TRANSPORTATION OF AMERICA ULC

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