STATEN ISLAND, N.Y.-- Dec. 16, 1999--The Atlantic Express Transportation Group Inc. announced today that the NJ Transit Board of Directors has approved the award of an $18.2 million, five-year contract to Atlantic Paratrans, Inc., the Company's paratransit services operating subsidiary.

Atlantic Paratrans, Inc., which already operates paratransit service under contract to NJ Transit in Atlantic, Cape May and Cumberland Counties, will begin serving certified, ADA-eligible residents of Essex, Union, Morris, Somerset and parts of Hudson and Bergen Counties in May, 2000.

Atlantic Express, an American-based, American-owned bus company, is the nation's third largest provider of school transportation and one of the largest paratransit service carriers. In addition to NJ Transit, Atlantic provides paratransit service under contract to transit agencies in New York City (NY), Denver, (CO), Phoenix (AZ), Philadelphia (PA), and Louisville (KY).

Domenic Gatto, CEO and president of Atlantic Express said, "Atlantic is pleased with the decision by NJ Transit to award the company a contract to serve the largest population center in the State." He added, "This is a vote of confidence in Atlantic's approach to providing the disabled community with reliable, sensitive, customer-friendly service."

Atlantic Express has experienced rapid growth in recent years and, with this contract award, the Company will be operating more than 6,000 vehicles from coast-to-coast nationwide.

CONTACT: Atlantic Express Transportation Group Inc. Domenic Gatto, CEO/President - Telephone: (718) 442-7000 ext. 8060.

For inquiries regarding business development and acquisitions, please contact: Noel Cabrera, Executive Vice President - Tel. (718) 442-7000 ext. 8073.

For inquiries regarding transit and paratransit services, please contact: David S. Kessler, Vice-President - Tel. (718) 442-7000, Ext. 8077