Student Transportation Of America Ltd. And Student Transportation of America ULC Declare June 2008 Distribution

TORONTO (June 19, 2008) — Student Transportation of America Ltd. ("STA Ltd.") and Student Transportation of America ULC ("STA ULC", and together with STA Ltd., the "Issuer") (TSX: STB, STB.UN) today announced that a it will pay on July 15, 2008 to holders of record at the close of business on June 30, 2008 a cash dividend payment of C $0.04636833 per share on common shares held separately from IPSs, a cash payment of C $0.09125000 per income participating security ("IPS") and a cash interest payment of C $0.04488167 per C $3.847 of subordinate notes of STA ULC held separately from IPSs.

The common shares trade on the Toronto Stock Exchange under the symbol STB and the IPSs trade on the Toronto Stock Exchange under the symbol STB.UN. For clarity, each IPS consists of one common share of STA Ltd. and C $3.847 principal amount of 14 per cent subordinated notes of STA ULC, a wholly-owned subsidiary of STA Ltd.

Student Transportation of America 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.