STATEN ISLAND, N.Y.-- May 24, 2000--Atlantic Express Transportation Group Inc. announced today that its paratransit division, Atlantic Paratrans ("Atlantic") was awarded $1.5 million in damages in an arbitration proceeding with the Regional Transportation District (RTD) of Denver, Colorado.

The arbitration decision concluded that Atlantic was entitled to monetary damages as well as rescission of its contract with RTD based upon material misrepresentations made by RTD in the contracting process. RTD had awarded the five-year paratransit contract to Atlantic in 1999. Service was terminated on April 30, 2000 based upon an agreement between Atlantic and RTD to arbitrate Atlantic's claim for damages.

Atlantic Paratrans is one of the largest providers of paratransit service in the nation. It is the largest paratransit contractor to the New York City Transit Authority and to SEPTA of Philadelphia. It also operates paratransit services in Phoenix (AZ), Louisville (KY) and various counties in New Jersey.

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 operating approximately 6,500 vehicles from coast to coast with revenues of approximately $400 million. Atlantic also provides coach and charter, pre-kindergarten transportation 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: (718)442-7000 ext. 311.

For inquiries regarding business development and acquisitions, please contact: Noel L. Cabrera, Executive Vice President - Tel.:(718)442-7000 ext. 318.