Atlantic Express Emerges from Bankruptcy: New Credit Facilities in Place

Business Wire

January 8, 2004

STATEN ISLAND, N.Y., Jan 8, 2004 (BUSINESS WIRE) -- Atlantic Express Transportation Group Inc. and its subsidiaries today announced their emergence from Chapter 11 reorganization proceedings and the raising of $145 million in new financing. The Company's Plan of Reorganization was confirmed by the U. S. Bankruptcy Court for the Southern District of New York by order dated September 4, 2003.

In connection with the emergence from reorganization, Atlantic Express entered into a new $100 million revolving credit facility with Congress Financial Corporation, as Agent, and a $45 million financing with Banc of America Securities LLC. Rothschild, Inc. was the Company's financial adviser throughout the bankruptcy process including arranging the exit financing.

"This is a very important milestone for our company, and one that also defines our future direction," said Domenic Gatto, the founder and Chief Executive Officer of Atlantic Express. "We now have the resources to execute our business strategy, and I am confident that we will meet our new goals. I would like to thank the more than 10,000 Atlantic Express employees, our valued customers and creditors for their support during this challenging period."

About Atlantic Express Transportation Group, Inc.

Atlantic Express is the fourth largest provider of school transportation in the United States and is the LARGEST AMERICAN-OWNED, AMERICAN-BASED SCHOOL BUS COMPANY. Atlantic Express 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 and commuter transportation.

Forward-Looking Statements

This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on the Company's current expectations and involve risks and uncertainties that could cause the Company's actual results to differ materially from those set forth in the statements. The Company can give no assurance that such expectations will prove to be correct. Factors that could cause the Company's results to differ materially from current expectations include: failure of the Company's senior lenders or other constituencies to approve the plan of reorganization; failure by the Company's vendors to maintain existing credit terms; failure of the Company to consummate the plan of reorganization; failure of the Company's customers to make payment on their normal terms; the level of demand for its services by multi-site customers; the level of interest rates, which affects demand for the Company's services and its interest expense; the potential impact of any acquisition, disposition, merger, joint venture or any other significant financial transactions that could occur in the future; working capital requirements; general economic conditions; as well as other factors.

SOURCE: Atlantic Express Transportation Group Inc.

CONTACT: Atlantic Express Transportation Group Inc.

Nathan Schlenker, 718-442-7000

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