Student Transportation Announces Increase in Senior Credit Facilities to Fuel Continued Growth in 2008

    Scotia Capital joins in as lenders signal confidence

    TORONTO, Jan. 17 /CNW/ - Student Transportation of America Ltd. ("STA")
(TSX: STB, STB.UN), one of North America's fastest growing school
transportation providers, today announced that, it has secured increased
commitments under its existing senior credit facilities by US $40 million. The
increase in commitments will provide working capital and support the company's
continued growth, including the pending acquisition of Canadex Resources Inc.
    "The increase in our senior credit facility allows us to leverage
additional growth targets and further demonstrates lender confidence in the
stability of our business," said Patrick J. Walker, executive vice president
and chief financial officer. "We are pleased that Scotia Capital has joined
our group of lenders and we welcome their support as one of Canada's leading
    The increase in senior debt commitments with STA senior lenders was led
and underwritten by BMO Capital Markets which also acted as Administrative
Agent for the bank group comprised of GE Capital, CIBC World Markets Inc. and
Scotia Capital.
    "Securing the increase in senior debt commitments in the current market
environment, while adding strength to the group, is a direct result of the
consistent, reliable and predictable nature of our business model as we
continue to grow," said Walker.


    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

    Forward-Looking Statements

    This news release contains "forward-looking statements" within the
meaning of applicable securities laws, which reflects the expectations of
management regarding Student Transportation of America Ltd.'s, Student
Transportation of America ULC's and Student Transportation of America
Holdings, Inc.'s (the "Company") results of operations, expense levels,
seasonality, cash flows, performance, liquidity, borrowing availability,
financial ratios, ability to execute the Company'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", "could",
"plans" or "continue" or similar expressions suggesting future outcomes or
events. These forward looking statements reflect the Company's current
expectations regarding anticipated future events, results, circumstances,
performance or expectations 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 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, Executive Vice President and 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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