Staten Island, New York, May 5 , - Atlantic Express Transportation Group, Inc. (Atlantic) announced today that the Board of Education of the City of New York has approved a five-year extension of New York City school bus transportation contracts. The contracts which will be extended through June 30, 2005 have a total value of approximately $650 million.

Atlantic, which is the third largest school bus transportation company in North America, is the single largest provider of school bus transportation services to the New York City Board of Education, providing regular and special education transportation for over 32 years through its subsidiaries, Amboy Bus Company, Inc., Staten Island Bus Company, Inc. and Metropolitan Escorts, Inc.

Domenic Gatto, chief executive officer and president of Atlantic Express said, "This extension approval is a vote of confidence to Atlantic's consistent performance and quality service. We shall continue to strive to provide the best possible service to the city's school children."

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. With this acquisition, Atlantic now operates approximately 6,500 vehicles from coast to coast with revenues of approximately $400 million. Atlantic is also one of the nation's largest providers of paratransit service and 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. 8060.

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