Student Transportation Completes Tuck-in Acquisition

Student Transportation Completes Tuck-in Acquisition

Toronto, ON – April 18, 2006 – Student Transportation of America, Ltd. (STA), (TSX:STB.UN) today announced that it has acquired McCrillis Transportation Inc. ("MTI") of Portsmouth, New Hampshire. MTI has annual revenues of US $670,000. More than 70 per cent of the new revenue from this acquisition will be fuel protected, which is consistent with the company's fuel mitigation strategy.

"We welcome MTI to the STA family of companies. The McCrillis family has been in business for over 30 years and will be continuing on with our operations. This local hometown company fits very well with our rural strategy," said David White, President and Chief Operating Officer of STA. "This tuck-in acquisition marks our seventh location in New Hampshire and contributes to our continued focus on increasing regional density," continued White.

Forward-Looking Statements

This news release contains "forward-looking statements" within the meaning of applicable securities laws, which reflects the expectations of management regarding the Issuer's and Company's 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", "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.

Profile

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 bus transportation company by aggregating operations through the consolidation of existing providers and conversion of in-house operations and currently operates more than 3,500 school vehicles in North America. For more information, please visit www.sta-ips.com.

For more information contact:
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
kengelbert@sta-ips.com