Student Transportation of America, Inc. Continues Growth Coast-to-Coast

WALL, N.J.--(BUSINESS WIRE)--July 14, 2003--Student Transportation of America, Inc. (STA) Chairman & CEO, Denis J. Gallagher announced recently that the company has continued its selective growth plan for the coming school year through a targeted acquisition and a new multi-year contract award.

STA has added to its family of companies Dail Transportation, Inc. of Epsom, New Hampshire. The company was founded 25 years ago by former owners Philip and Patsy Dail. The operation provides pupil transportation for nine rural New Hampshire school districts that are adjacent to districts currently served by STA.

Commenting on the acquisition, Gallagher said, "Dail is a great fit for us -- it's a well-run established operation with a great reputation for safety and service and strong community ties. Its position near our existing New Hampshire locations affords us opportunities for efficiencies. We are very pleased that the Dails chose STA to continue in their footsteps."

In California, the company was awarded a new multi-year contract in the Los Angeles suburb of Palmdale. Under a transportation management contract, STA will manage and operate the Palmdale School District-owned fleet, a growing trend among schools in the Golden State.

"We are excited and certainly honored to be chosen as the new student transportation provider for Palmdale. The great service provided by our team in California has allowed us to continue our growth strategy there by combining local hometown service with STA's resources and management expertise," Gallagher added.

The company has been in discussions with several other California school districts in regards to managing their fleets due to school administrators' need to become more fiscally prudent in their support services. STA believes managing the transportation service for the district allows more dollars to be spent on education where parents and board members are feeling the most pressure.

STA now operates over 2,500 buses locally in eight states across the US.

Student Transportation of America, Inc. is the second-largest private provider of school transportation and management services in the United States. STA's senior management team has an average of more than 23 years of experience each in the student transportation industry.