- Revenue was US $59 million, up 20% from the same period last year
- EBITDAR* improvement of 26% to US $13.6 million while net loss for the quarter was $0.9 million versus $0.2 million from the same period last year.
- Subsequent to quarter end, completed several common share private placement offerings raising approximately C $60 million

TORNONTO, Ontatio (May 12, 2008) - Student Transportation of America Ltd. ("STA" or the "Company") (TSX: STB, STB.UN) today reported financial results for the third quarter of fiscal year 2008, ended March 31, 2008. All financial results are reported in U.S. dollars and compared to the same three month period last year except as otherwise noted.

Third quarter revenue was $59.1 million, up from $49.2 million and EBITDAR* rose to $13.6 million from $10.8 million. STA reported a net loss for the quarter of $0.9 million or $0.03 per common share compared to $0.01 from the same period last year.

For the quarter the Company generated cash available for distributions* of $11.8 million and paid out distributions of $5.2 million (C $5.9 million). Net cash provided by operations was $9.2 million for the quarter. As stated previously, due to the seasonality of the business, schools are not in session during the majority of STA's first quarter, the Company views distributable cash on an annualized basis.

"It was a good quarter for STA," said Denis J. Gallagher, Chairman and Chief Executive Officer. "We grew revenue by 20% and improved EBITDAR by 26%, compared to the same period last year, as a result of our growth strategy of acquisitions, bids and conversions. We were especially pleased to see margin improvement this quarter considering the increases in both snow days and fuel prices in the school bus division which was helped by the increase in commodity prices in our energy division. Our management team did a good job containing expenses they can control. In addition, since the end of the quarter, we strengthened our balance sheet by substantially reducing our debt with the net proceeds of the completed C $60 million private placement offerings of our common shares."

Revenue for the quarter was approximately $1.0 million less than anticipated due to poor weather conditions which closed schools in several of STA's regions during the winter months. This year's third quarter brought heavy snows from Ontario to the Mid-west and conditions slightly worse than last year in New England. The Company, however, expects a corresponding improvement on EBITDAR in the fourth quarter when snow days are added on to the end of the school year.

"Historically we recover most of the revenue lost due to bad weather although it is not certain we will recoup the full amount." said Gallagher. "We also are pleased that outstanding safe driving performance by our drivers resulted in lower insurance costs both fixed and claims, again this year. In addition, we plan on continuing our lease program with GE Capital to extend our vehicle leasing program through fiscal year 2009 at approximately 5 percent fixed rates for some of our replacement capital expenditures. We are well positioned for a good year-end as we approach the close of another school year and continue to actively bid on new contracts and discuss a number of targeted acquisitions."