RTD Denver Awards $60.5 M Access-A-Ride Contract to Atlantic Express.

STATEN ISLAND, N.Y.--(BUSINESS WIRE)--Sept. 25, 1998--Atlantic Express Transportation Corp. announced today that the Board of Directors of the Regional Transit District ("RTD") of Denver, Colorado approved the award of a five-year $60.5 million contract to Atlantic Express to operate the Access-A-Ride ADA Paratransit Service in the RTD region.

The contract, which will be performed by Atlantic's Paratransit division, will entail more than 500,000 trips a year with a fleet expanding to 190 vehicles. Atlantic's contract also includes the operation of scheduling systems for the RTD.

Services under the contract are scheduled to commence in April 1999. The company and RTD are looking forward to a smooth transition of operations from the current provider, Laidlaw Transit Service Inc. which has provided RTD's paratransit services for the past five years.

CEO and President Domenic Gatto said, "We are delighted to hear that RTD has decided to award this contract to us. As always, we will strive to provide the best service possible. This RTD contract marks our entry into the Rockies Region and is in line with our expansion and acquisition program. The addition of this contract will increase our revenues to more than 300 million dollars annually."

Atlantic Express is the third largest provider of school bus transportation in the United States. The company has contracts with school districts in New York, Missouri, California, Pennsylvania, Connecticut and New Jersey. In addition to school bus transportation operations, the company provides services to public transit systems for physically and mentally challenged passengers, transportation for pre-kindergarten children and Medicaid recipients, and express commuter line and charter and tour bus services. Atlantic has a fleet of approximately 4,300 vehicles operating from 35 facilities.

This news release contains certain forward-looking statements that involve risks and uncertainties. Factors that could cause or contribute to such risks and uncertainties include, but are not limited to, general economic and business conditions, changes in transit authority requirements and various other factors beyond the company's control. This includes such factors as described from time to time in SEC reports filed by Atlantic Express Transportation Corp., including the most recently filed Form 10-Q.