Student Transportation (STA) Wins New Florida School Busing Contract



    
    Valued at More Than $14 Million per Year, Contract to Serve Nation's
    20th Largest School District Creates New Southeast Platform
    

    WALL, NJ, Feb. 4 /CNW/ - Student Transportation of America, Ltd. (STA)
(TSX: STB) last night announced that it has been awarded a contract to provide
transportation services to Duval County (Fla.) Public Schools beginning in the
2009 - 2010 school year. The initial five-year contract is valued at $14.3
million per school year with annual increases provided. With a total value of
more than $71 million in the first five years, the contract also includes an
option to renew beyond the base years for an additional five-year period
giving the company a new platform for growth in the Southeast.
    STA will purchase an entirely new fleet of school vehicles to serve more
than 250 routes covering the 841 square-mile area surrounding Jacksonville,
Florida.
    "This contract is a huge win for STA; and certainly one of the largest in
our company's 12-year history," said STA Chairman and CEO Denis J. Gallagher.
"It's a testament to our outstanding reputation for safe, reliable quality
service. With this new contract, we have firmly placed a flag in the ground in
Florida which will serve as a base as we grow our regional density throughout
the Southeast, an area of the country with the largest concentration of school
districts that still own and operate their own school bus fleets."
    "We have been asked to review the transportation needs of a number of
school districts this year where modernization of fleets and cost reductions
are necessary to help relieve already strained municipal budgets. Our
investment here is long term, which was one of the most attractive things we
liked about this opportunity. We will put tremendous resources into this
contract and, with the experience we have, we plan to do an excellent job for
the school district, and the community as well as provide our drivers and
staff with a great family atmosphere in which to work," Gallagher said.
    As the fourth largest provider of school bus transportation services in
North America, STA currently serves more than 200 school districts and
continues to pursue strategic growth opportunities through acquisitions, bids
and school district conversions throughout the United States and Canada. The
company conducts operations through a family of local operating subsidiaries
and regional teams firmly rooted in the local communities they serve.

    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 5,600 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: 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; MEDIA CONTACT: Lynette
Viviani, (973) 968-7929 office, (973) 534-1004 mobile, lviviani@ridesta.com

Organization Profile

STUDENT TRANSPORTATION INC.

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STUDENT TRANSPORTATION OF AMERICA ULC

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