Atlantic Express Transportation Group, Inc. Acquires Transcomm, Inc.

Business Editors

STATEN ISLAND, N.Y.--(BUSINESS WIRE)--Jan. 20, 2000

Atlantic Express Transportation Group Inc., announced today the acquisition of Transcomm, Inc., a school bus transportation provider in eastern Massachusetts.

Atlantic's CEO and President Domenic Gatto said, &uot;We welcome the new millennium with an excellent acquisition. We expect to generate synergy as we combine Transcomm with other recent acquisitions in Massachusetts and provide Atlantic with greater presence in the Boston area.&uot; Last year, Atlantic acquired McCarty Limousine Service, Inc. and the Fiore Group of Companies, both in Massachusetts.

William Covalucci, president of Transcomm said, &uot;We are excited to join the Atlantic Express group which has proven itself as a reputable operator and consolidator. Since it began operating in Massachusetts last year, Atlantic has set high standards in providing transportation services to this area. Under the Atlantic Express umbrella, we can continue to grow Transcomm along with Atlantic's other acquisitions.&uot; Gatto said, &uot;Last year, Atlantic's fleet grew by 35%. Atlantic is well-financed to continue growing through more smart acquisitions nationwide. We plan to grow larger not only in school bus services but also in the transit business.&uot;

Atlantic's other recent acquisitions include T-NT Bus Service Inc. in New York, Mountain Transit Inc. in Vermont and Winsale Inc. in New Jersey. Atlantic also won major school bus and paratransit contracts in 1999 in Northern New Jersey, Chicago (IL), Long Beach (CA), Denver (CO), Phoenix (AZ), St. Louis (MO), Philadelphia (PA) and Billerica (MA).

Atlantic Express is the third largest provider of school transportation in the United States and is the LARGEST AMERICAN-OWNED, AMERICAN-BASED SCHOOL BUS COMPANY. With this acquisition, Atlantic now operates more than 6,200 vehicles from coast to coast with revenues nearing $400 million. Atlantic is also one of the nation's largest providers of paratransit service. In addition, Atlantic provides coach and charter, pre-kindergarten and Medicaid transportation services as well as bus sales and bus leasing.

For additional information or for inquiries on joining the Atlantic Express Group, please contact:

Domenic Gatto, CEO/President - Telephone: [phone] ext. 8060.

For inquiries regarding business development and acquisitions, please contact:

Noel Cabrera, Executive Vice President - Tel. [phone] Ext. 8073.

Website: www.atlanticexpress.com

Email address: [e-mail]

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