Atlantic Express Transportation Acquires James H. McCarty Bus Service

17 June 1999

Atlantic Express Transportation Group Inc. Acquires James H. McCarty Bus Service of Massachusetts

    STATEN ISLAND, N.Y.--June 17, 1999--Atlantic Express Transportation Group, Inc., announced today the acquisition of James H. McCarty Bus Service (McCarty), a school bus transportation provider which services North Central Massachusetts and also provides daily shuttle service to Boston's Logan Airport.
    Domenic Gatto, chief executive officer and president of Atlantic Express said, "We are excited about our fast growth in the Massachusetts area which we entered just six months ago. McCarty is an excellent company and is a great addition to our existing operations. This acquisition will further enhance our ability to expand in the New England area."
    Jim McCarty, the principal of McCarty said, "The McCarty family has operated this business since 1928 and we are confident that the company will continue to grow and provide the same quality service under the Atlantic Express umbrella. This is a big step for me and my family. During the entire process, we have found Atlantic Express to be honorable and equitable in all of its dealings with us."
    Jim McCarty is the president of the School Transportation Association of Massachusetts (STAM) composed of about 100 small and medium sized school bus companies. He will continue as part of the management team at McCarty Bus under an employment/consultant agreement with the company.
    Gatto said that, "Atlantic continues to grow through strategic acquisitions and through successful bidding nationwide. To date, we have increased our fleet size by about 25% over the same period last year."
    Atlantic's recent acquisitions include the Fiore Group of Companies in Massachusetts, Mountain Transit Inc. in Vermont and Winsale Inc. in New Jersey. It has also won major school bus and paratransit contracts in Long Beach (CA), Denver (CO), Phoenix (AZ), St. Louis (MO), Philadelphia (PA) and Jersey City (NJ).
    Atlantic Express is the third largest provider of school bus transportation in the United States operating more than 5,000 vehicles nationwide with revenues in excess of $360 million. It is also one of the largest providers of paratransit service and also provides transit services, pre-kindergarten and Medicaid transportation, bus sales, leasing and service.
    Information contained in this news release other than statements of historical fact are forward-looking statements subject to various risks and uncertainties. Although Atlantic believes that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove correct. Factors that could cause the company's results to differ materially from the results in such forward-looking statements include reduction and/or changes in contract requirements of customers.
    For additional information or for inquiries on joining the Atlantic Express Group, please contact:

    Domenic Gatto, CEO/President - Telephone (718) 442-7000 ext.311.

    For inquiries regarding business development and acquisitions, please contact:

    Noel L. Cabrera, Executive Vice President
    - Telephone (718) 442-7000 ext. 318