COACH USA ANNOUNCES RECORD THIRD QUARTER RESULTS -- Pro Forma EPS $0.60 on 53% Revenue Increase --.

HOUSTON, Texas--(BUSINESS WIRE)--Nov. 3, 1997--Coach USA, Inc., (NYSE: CUI), the largest tour and charter motorcoach company in the United States, today announced record results for the quarter ended September 30, 1997.

Pro forma revenues increased 53% to $143.4 million for the quarter ended September 30, 1997 from $93.6 million for 1996. Third quarter pro forma income before extraordinary items increased 58% to $12.4 million in 1997 compared to $7.8 million for 1996; earnings per share rose to $0.60 for the period ended 1997 compared to $0.44 for 1996.

The above results exclude $0.5 million in non-recurring expenses and related tax effects associated with pooling-of- interests transactions. Pro forma income before extraordinary items and earnings per share for the quarter ended September 30, 1997, including the expenses associated with poolings, were $11.9 million and $0.58, respectively.

The Company attributed the increased revenues for the quarter to both acquisitions and continued strong internal growth. Profitability increased as a result of implementation of the Company s operational and financial synergies.

Richard Kristinik, Chairman and Chief Executive Officer commented, "We are very pleased with our third quarter results which we attribute to the combination of acquisitions, year-over- year margin improvement and strong internal growth. Our performance in the third quarter of 1997 is even more impressive when you compare it to the exceptionally strong third quarter of 1996 during which the industry had nearly 2,000 buses servicing the Summer Olympics in Atlanta.

"In our continuing effort to build the infrastructure of the company, we recently announced the appointments of several regional vice presidents. Operating on a regional basis should allow management to better focus on the utilization of equipment in each area by treating the local fleets as one," Mr. Kristinik added.

Finally, commenting on the acquisition program, Mr. Kristinik stated, "The acquisition pipeline is full and our program remains very active going into the fourth quarter. Our strategy is to continue to focus on large beachhead/platform acquisitions, while opportunistically taking advantage of certain tuck-in opportunities as they materialize."

Since its IPO in May 1996, Coach USA has completed 35 acquisitions. Total acquisitions since May 1996 represent $380 million in annualized revenues. This increases Coach USA's current annualized revenue run rate to over $530 million.

Coach USA is the largest provider of motorcoach tour and charter services and one of the largest providers of motorcoach commuter and transit services in the United States.

Note: This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on the current plans and expectations of Coach USA, Inc. and involve risks and uncertainties that could cause actual future activities and results of operations to be materially different from those set forth in the forward-looking statements. Important factors that could cause actual results to differ include, among others, risks associated with acquisitions, fluctuations in operating results because of acquisitions and variations in stock prices, changes in government regulations, competition, and risks of operations and growth of the newly acquired businesses. -0-

                          COACH USA, Inc.
              Pro forma Combined Statements of Income
  For the three months and nine months ended September 30, 1997 &
                               1996
             (Unaudited - in thousands except for EPS)


                             Three Months Ended        Nine Months Ended
                            9/30/97      9/30/96       9/30/97    9/30/96

Revenues                   $143,382      $93,629      $354,018   $242,312

Operating Expenses          102,221       67,354       260,861    183,064
  Gross Profit               41,161       26,275        93,157     59,248
                               28.7%        28.1%         26.3%      24.5%

S,G, & A Expenses            14,138        9,665        38,289     26,924
Amortization                  1,037          200         2,379        435
Merger costs - poolings (1)     524          340           918        340
   Operating Income          25,462       16,070        51,571     31,549
                               17.8%        17.2%         14.6%      13.0%

Interest and Other Expenses   6,345        2,950        13,990      8,078

Income Before Income Taxes   19,117       13,120        37,581     23,471
Provision for income Taxes    7,254        5,638        15,006      9,896

Income before extraordinary
   items                     11,863        7,482        22,575     13,575
Extraordinary items
   (net of income tax)         (202)       4,205          (603)     4,205

Net income                   11,661       11,687        21,972     17,780
Weighted Average Shares      20,629       17,725        20,420     17,400

EPS                         $  0.57     $   0.66      $   1.08     $ 1.02
EPS (before extraordinary
    items)                  $  0.58     $   0.42      $   1.11     $ 0.78

EPS (1)                     $  0.60     $   0.44      $   1.15     $ 0.80

Depreciation                  7,474        4,433        19,580     12,025
Amortization                  1,037          201         2,379        435
EBITDA                       33,973       20,704        73,530     44,009
                               23.7%        22.1%         20.8%      18.2%

Note 1: The above pro forma net income for the 1997 periods includes
non-recurring costs associated with certain 1997 pooling-of-
interests transactions of $524 and $918 related to acquisitions for
the three months and nine months ended September 30, 1997,
respectively.  Excluding these costs, pro forma net income before
extraordinary items would have been $12,387 and $23,493 and pro
forma EPS would have been $0.60 and $1.15 for the three months and
nine months ended September 30, 1997.  The extraordinary items
above are the result of debt forgiveness at one of the pooled
companies and the early extinguishment of debt at several
companies.

Note 2: Prior to the Mergers, the Founding and pooled companies have
been managed as independent private companies.   In conjunction
with the mergers, certain stockholders have agreed to reductions in
salaries and benefits and have entered into employment agreements.
The pro forma data presents compensation at the level the
stockholders agreed to receive subsequent to the Mergers.  In
addition, the pro forma data presents the incremental provision for
income taxes as if all entities had been subject to federal and
state income taxes throughout the periods.

CONTACT: Dick Kristinik, Chairman and CEO

Larry King, Senior Vice President and CFO

One Riverway, Suite 600

1(888) COACH-US

Betsy Brod/Karen Kruza

Investor Relations

Morgen-Walke Associates

[phone]