Student Transportation declares October 2009 payments

    
    /NOT FOR RELEASE OVER US NEWSWIRE SERVICES/
    

BARRIE, ON, Oct. 21 /CNW/ - Student Transportation of America Ltd. ("STA Ltd.") and Student Transportation of America ULC ("STA ULC", and together with STA Ltd., the ("Issuer") (TSX: STB, STD.DB) today announced that it will pay on November 16, 2009 to holders of record at the close of business on October 30, 2009 a cash dividend payment of C$0.04636833 per share common share and a cash interest payment of C$0.04488167 per C$3.847 of subordinate notes of STA ULC held.

STA Ltd. designates these dividends to be "eligible dividends" pursuant to subsection 89(14) of the Income Tax Act ( Canada ) and its equivalent in any provinces of Canada .

About Student Transportation

Founded in 1997, Student Transportation of America (STA) is North America's third-largest and fastest-growing provider of school bus transportation services, operating more than 6,300 vehicles. STA's family of local companies delivers safe, reliable and cost-effective transportation solutions to school districts throughout the U.S. and Canada . Services are delivered by drivers, dispatchers, maintenance technicians, terminal managers and others who are caring members of their local communities. 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 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: INVESTOR CONTACTS: Student Transportation of America Ltd., Denis J. Gallagher, Chairman and Chief Executive Officer, [phone], [phone] (FAX); Patrick J. Walker, Executive Vice President and Chief Financial Officer, [phone], [phone] (FAX); Keith P. Engelbert, Director of Investor Relations, [phone], [phone] (FAX), Email: [email protected], Website: www.rideSTA.com