Staten Island, New York, December 18, 1998 - Domenic Gatto, CEO and President of Atlantic Express Transportation Group, Inc. announced today that it has completed the transaction of acquiring Mountain Transit Inc., a Vermont-based school bus operator.

Gatto said, "Mountain Transit Inc. is a great addition to our expanding business operations and marks our company's entry into the Vermont market with a school bus company that has an excellent reputation in providing quality work with its proven service and safety record."

Mountain Transit is one of the largest school bus contractors in the state of Vermont providing pupil transportation services to various school districts and colleges located in the Burlington area operating out of several facilities in Northwestern Vermont.

The principal of Mountain Transit, Kevin Endres, who was recently awarded the 1998 School Bus Contractor of the Year award given by the industry's School Bus Fleet Magazine, said "I look forward to the joining of these two fine companies and to a continuation of the excellent service that earned Mountain Transit its national reputation." Endres organized the Vermont School Transportation Association and is currently its president. He has been appointed by Gatto to become a member of the Atlantic Express Contractor's Advisory Board, which assists in policies and service decisions.

Atlantic express is the third largest provider of school bus transportation in the United States operating more than 4,600 vehicles from coast to coast. It is also one of the largets providers of paratransit and transit services, pre-kindergarten and Medicaid transportation, and bus sales, leasing and service. Atlantic Express is an American-owned, American-based company.

For additional information or for inquiries on joining the Atlantic Express Group, please contact: Domenic Gatto, CEO/President Tel. (718)-442-7000 ext.311