STATEN ISLAND, N.Y.--June 29, 1999--Atlantic Express Transportation Group, Inc. announced today that the Board of Education of the City of Chicago awarded a three-year school bus transportation contract to its subsidiary Atlantic Express of Illinois, Inc. Services are scheduled to commence September 1999. The contract is valued at approximately $16 million.

The award marks the entry of Atlantic Express into the state of Illinois. The Company has major school bus and paratransit service contracts in New York City, Philadelphia, St. Louis, Louisville, Denver and Los Angeles. Operations in Phoenix are slated to start on July 1, 1999. Atlantic Express now has operations in twelve states.

Domenic Gatto, chief executive officer and president of Atlantic Express said, "We are delighted to have received this award and we are looking forward to providing the people of Chicago with our brand of service. As in the past, we believe that through quality service, Atlantic will have excellent opportunities to further grow and expand in one of the biggest cities in the country."

Atlantic Express is the third largest provider of school bus transportation in the United States operating more than 5,100 vehicles nationwide with revenues in excess of $360 million. It is also one of the largest providers of paratransit services and a provider of transit services, pre-kindergarten and Medicaid transportation, bus sales, leasing and service.

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.