Student Transportation announces acquisition in Wellington County

    Continues to Increase Canadian Dollar Cash Flows

    TORONTO, Sept. 5 /CNW/ - Student Transportation of Canada ("STC"), an
operating subsidiary of Student Transportation of America ("STA") (TSX: STB),
announced that it has entered into an agreement to acquire the Elliott Coach
Lines group of companies, a local school bus operator based in Guelph,
Ontario. Elliott Coach Lines ("Elliott") will add more than 230 vehicles,
Cdn $12 million in annualized revenue and three locations to STC's Ontario
operations. Closing is expected to occur before close of business September 6,
2007. While the purchase price was not disclosed, management expects the deal
to be immediately accretive.
    "This is a great acquisition and increases our Canadian dollar operating
cash flows as well as adds to our regional density outside the greater Toronto
area. It also strengthens our position for future growth in Ontario and
beyond," said Denis J. Gallagher, Chairman and Chief Executive Officer of STC.
"We are very pleased that the Elliott companies, after 50 years of quality
service, have partnered with STC and we look forward to continuing the
tradition of service excellence they have been providing in the Wellington
County area. With the start of the new school season underway, we are pleased
to have such a fine operation fit so well with our dedicated group of
drivers," added Mr. Gallagher.
    Alluence Capital Advisors Inc. based in Mississauga, Ontario assisted the
Company with the transaction.


    Student Transportation is the fifth-largest provider of school bus
transportation services in North America, conducting operations through local
operating subsidiaries. Student Transportation has become a leading school
transportation and management company by aggregating operations through the
consolidation of existing providers and conversion of in-house operations and
currently operates more than 4,500 school vehicles in North America. For more
information, please visit

    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, including the acquisition of notes under the
Exchange Offer, that 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 acquisition of less than a significant
number of notes under the Exchange Offer and 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: 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,

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