Student Transportation of America Ltd. and Student Transportation of America ULC

/NOT FOR RELEASE OVER US NEWSWIRE SERVICES/

Each IPS consists of one common share of STA Ltd. and Cdn $3.847principal amount of 14 per cent subordinated notes of STA ULC, a wholly-ownedsubsidiary of STA Ltd. The IPSs trade on the Toronto Stock Exchange under thesymbol STB.UN. The total payment of $0.09125000 per IPS reflects a cashdividend of $0.04636833 per common share and an interest payment of$0.04488167 per IPS for the period from November 1 to November 30, 2007.

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.

For clarity, with respect to any holders that hold common shares of STALtd. (TSX: - ) and/or subordinated notes of STA ULC (TSX: - ) separately(as opposed to in the form of an IPS), the payment will be a cash dividend of$0.04636833 per common share and a cash interest payment of $0.04488167 perCdn.$3.847 of subordinate note.

Profile

The Issuer is the fourth-largest provider of school bus transportationservices in North America, conducting operations through local operatingsubsidiaries. The Issuer has become a leading school bus transportationcompany by aggregating operations through the consolidation of existingproviders and conversion of in-house operations and currently operates morethan 5,000 school vehicles in North America. For more information, pleasevisit .

Forward-Looking Statements

This news release contains "forward-looking statements" within themeaning of applicable securities laws, which reflects the expectations ofmanagement regarding the Issuer's and Company's results of operations, expenselevels, seasonality, cash flows, performance, liquidity, borrowingavailability, financial ratios, ability to execute the Company's growthstrategy and cash distributions. Forward-looking statements generally can beidentified 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 suggestingfuture outcomes or events. These forward looking statements reflect theCompany'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, andshould not be read as guarantees of future performance or results, and willnot necessarily be accurate indications of whether or not or the times atwhich or by the performance or results will be achieved. A number of factorscould cause our actual results to differ materially from the resultsdiscussed, expressed or implied in any forward-looking statement made by us oron our behalf, including, but not limited to, the factors discussed under"Risk Factors" in our Annual Information Form. These forward lookingstatements are made as of the date of this news release and, except asrequired by applicable law, we undertake no obligation to publicly update orrevise any forward-looking statement, whether as a result of new information,future events or otherwise.

For further information

Denis J. Gallagher, Chairman and ChiefExecutive 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,